Inflation makes companies rethink about hiring

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Keywords: Companies, Hiring

New Delhi: India was rated as the most optimistic nation for employment globally a few weeks back, but now double-digit inflation is expected to affect hiring prospects in the country.

''Due to rising inflation there would be negative impact on financial sector, manufacturing sector and the overall job market,'' says Naresh Malhan, MD of Manpower India.

Companies across sectors have begun resorting to measures like deferring hiring, minimising work force and even sacking employees who didn’t meet performance expectations.

Sectors like retail and FMCG, which created huge employment demand in the last couple of years, might also slow down hiring. Industry experts say they can't continue increasing cost of the products as that'll impact consumer demand.

''Input costs are sky high, so obviously hiring will get impacted'' says R Subramanium, MD, Subhiksha

I-T companies are facing double trouble: high inflation coupled with recession in the US. Experts believe that if the inflationary trend continues it would also reflect on increments.

''The next cycle of salary reviews, which usually happen at the end of calendar year or financial year, would depend on how the situation shapes up," says Malhan.

But there are companies that are opting for a different way out. For instance, the country's largest BPO firm, Genpact is experimenting with work-from-home initiatives for employees in fields such as finance, law and HR.