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India Inc cut costs with entry-level hires

Budget constraints are pushing companies to increase intake of students from tier-2 and -3 colleges

Policy Pulse
Publish Date: Apr 15 2016 12:12PM | Updated Date: Apr 16 2016 2:53PM

India Inc cut costs with entry-level hires

 Slower growth and deceleration in funding are making companies -including startups -across a range of sectors hire junior-level candidates in place of mid-level ones, according to multiple hiring platforms. 

 
In the case of tech firms, the trend is even more pronounced because, in addition to budget constraints, many of the new-age tech qualifications that companies need are more likely to be available among younger employees. 
 
Online hiring firm Hiree said tech companies are now increasingly preferring people with experience of 1-3 years over those with experience of 3 years and more. It also noted that there's a 15% decline in the salary being offered to the junior-level employees. The data is based on the recruitment se arch patterns of over 400 companies, 60% of which comprised established startups, on the Hiree platform between October 2015 and February 2016. Almost 70% of the candidates surveyed were for tech roles by startups and corporates. 
 
Budget constraints are also pushing companies to increase intake of students from tier-2 and -3 colleges for entry-level positions. 
 
"Companies are becoming more prudent and looking to spend less," said Abhijit Khasnis, co-founder and COO, Hiree.That trend is pushing salary down even at the lower levels.Between October and February , the average salary of a junior (1-3 years' experience) hire on the Hiree platform came down from Rs 10 lakh to Rs 8.6 lakh.