For the April-June quarter, the telecom sector saw its highest attrition in six quarters at 8.87% compared with 7.88% in the January-March, said a report by staffing firm TeamLease. This was mainly due to a combination of people leaving jobs due to unsatisfactory appraisals, and the widening number of open positions in the market.
The sector ranked fifth on the intent to hire metric for the fiscal second quarter which started on July 1 at 84%, said the TeamLease report. Hiring intent refers to hiring plans a company/sector has for a certain time period. So, when one says 65% hiring intent, it means 65% of companies in that sector have conveyed that they plan to hire people in a particular quarter.
Intent to hire in telecom has been steadily on the rise since the December 2021 quarter. It stood at 45% in the October-December 2021 quarter, 65% in the January-March and 75% in the April-June.
On this metric, the telecom sector trailed information technology (98%), which took the top spot, followed by educational services (91%). Telecom also ranked at number 3 on the list of service sector companies for the same metric.
Industry estimates pegged the telecom sector to add between 18,000 to 20,000 jobs in fiscal 2023 on the back of 5G rollouts, with the spectrum auctions now over. However, even before the roll-out plans are put in place, telcos have started aggressively expanding their broadband services beyond the metros.
Mayur Taday, chief business officer at TeamLease Services, said most new job postings have come from telcos for their broadband divisions. “While providing broadband services, three profiles/job roles are in demand – sales, installation, and wiring. We are seeing demand for these roles increasing this quarter.”
He also said that not only is the 5G rollout and broadband expansion fueling hiring, but the general sentiment towards hiring is turning positive after a muted first fiscal quarter.
“There were many macro uncertainties that prompted companies to remain in maintenance mode in April. We saw hiring pick up from May and the trend will continue into the festive quarter, and beyond,” he said.
The report also expected private investments to the tune of Rs 394 crore this quarter, which will further help create more than 250 specialized jobs. These will include profiles like digital engineers who will be required to drive the broadband expansion spree.
“Companies would invest to deliver innovation, product development, threat research, and engineering, recruiting top talent to modernize cyber defense. A new technology hub will be set up in the western region, creating jobs for digital engineers,” Taday added.
Airtel had earlier announced setting up a digital hub in Pune to further its ambitions of pivoting to a digital services company from a traditional telco.
“All the sections of the industry have signaled strong growth plans for FY23 and beyond. So, the number of open positions in the market across industry sectors have gone up, which means demand has gone up and is outstripping supply. This makes it favorable for people to look for better pay or facilities,” he said.
Telecom ranked at number 6 on the attrition rates, with IT (22.03%) taking the top spot again, followed by educational services (13.11%), healthcare and pharmaceuticals (12.25), e-commerce and allied start-ups (11.04%) , and knowledge process outsourcing (10.52%).