A major theme for India Inc in FY21 was cost rationalisation. However, some costs made a comeback in FY22. Employee cost of Nifty 500 companies registers an eight-year high year-on-year (YoY) growth rate of 12.4% 10.8 trillion in FY22 after single-digit growth in FY20 and FY21, according to Motilal Oswal Financial Services.
The technology sector accounts for 31% of the total employee cost among Nifty 500 companies. Top IT companies hired more employees and hiked salaries of existing employees amid high demand for talent. For example, Infosys Ltd added more than 54,000 employees in FY 2012. According to Motilal Oswal, the next in line was the banking, financial services and insurance sectors, which accounted for more than 22% of employee costs.
see full image
Another analysis of employee cost trends for BSE 500 by Jefferies India Pvt. Ltd also showed that employee costs increased by 14%. 10 trillion in FY 2012, which is 9 percent faster than FY 2011. “An analysis of employee cost trends by company size (revenue-based) shows that employee cost growth in the top 400 companies is now at roughly the same pace, in contrast to the large mismatch between large and small companies in fiscal 2011,” Jefferies stated in the report. on the 4th of July.
Hiring trends are showing improvement in listed companies, but the unorganized sector is facing challenges. Small and sectoral companies in various sectors such as pipe, wood panel and tile manufacturers are battling input cost inflation and increasing competition from larger companies.
“While there is no comprehensive employment or wage indicator for the unorganized sector, anecdotal evidence points to a better employment outlook, particularly in the services sector. This is likely to boost incomes. That said, once high inflation Adjusted for Rs.
The rural employment outlook is also discouraging, with the unemployment rate rising to 8% in June from 6.6% in May, data from the Center for Monitoring Indian Economy shows. “Rural wage growth remains sluggish, and is currently below inflation,” the Jefferies report said. There are expectations that a normal monsoon will increase rural employment.
Simply put, employment trends for listed companies and in the unorganized sector indicate the size-sized recovery that the economy is now witnessing.