The rate at which the Indian engineering sector is growing, its current size indicate a faster growth rate, employment opportunities and a good scope to become a global player.
The Indian engineering sector can broadly be bifurcated into heavy engineering and light engineering. The former occupies 80 percent of the sector and spans across transport, equipments, capital goods, other machinery and equipments. The latter makes up the balance and spans low tech manufacturing sectors making castings, forgings, fasteners and highly sophisticated microprocessor-based process control equipments and diagnostic medical equipments. Players in this sector can also be categorized into equipment manufacturers, execution specialists and other niche players. Despite some slow down in IT/ITES, aviation, hospitality, travel and tourism sectors, the engineering and manufacturing sector continues to hold on with auto and machinery units fuelling its growth. The future for an Indian engineering sector is certainly very bright considering India’s high growth economic agenda.
The latest talent management and recruitment trends in this sector have gone through a metamorphic transformation. The traditional methods of management of talents and recruitment have gone through a metamorphic transformation in recent times. As far as the industry numbers are concerned, the facts are available for all to see. India has emerged in No.1 spot amongst 33 countries in terms of hiring, as per the Manpower Employment Outlook Survey 2008. With strong economic fundamentals, Indian Inc. is on a steady growth path.
Compensation markets have in the recent past been moving from different sectors in the range of 12-14 percent on a total cost to company basis. The cost for talent acquisition for top end talent even in engineering markets has been growing over a period of time. However, it is of course not moving at the same rate as that for investment banking or FMCG/retail markets. Some of the best retention techniques hover around offering huge project completion bonuses, short-term incentives programs, long term value creation bonuses, stock option programs and such other retention tools. Retention success is built around strong performance management system, which is closely linked, to total rewards management program.
The differences that we see in the workforce of this sector now from what it was a decade back are notable.
Higher mobility, upward migration to other higher sectors are some of the differences that can be seen. Arbitrage of talent from classical manufacturing sectors to infrastructure, mining and construction sectors can be seen as these are the new sunrise sectors of the new Indian economic development sector.
Lots of sectors hire manpower from other sectors due to shrinking talent pools. Is that true for the engineering sector? Talent has now easily replaceable from sector to sector, unless at the absolute grass root levels, technical subject matter expertise, which now is shrinking. With the ‘Go-to Market’ strategies and distribution channels in the market coming closer between Business-Business and Business Consumer markets skill transference from FMCG and retail sectors into the non-traditional B-B domains, is now very easy.
The Indian economy is expected to see higher growth in the coming future, a fact that experts have been foreseeing for a very long time. However, if you thought that this growth will have its effects only on selected industries and sectors, then you are highly mistaken. Recent reports say that the engineering oil and gas, manufacturing, power transmission and construction sectors/industries will continue to see a rise in India, as these sectors are considered to be the backbone of the economy and are intricately linked with umpteen other core sectors, for its demand. Studies have proven that in the future, these industries will continue to grow.