NBFCs Freeze Hiring
KOLKATA/MUMBAI: Recruitment across India’s non-banking finance companies has slowed to a crawl, with hiring practically at a standstill other than for critical roles.
And, despite the government throwing the sector a lifeline in the recent budget, it is unlikely that hiring will pick up at least for the next three to six months, say head hunters and industry insiders.
Senior executives were making a beeline to sign up for NBFCs with the sector growing at a scorching pace until a little over a year ago. Many of them are now looking for an exit into “safer” sectors, or into big, well-capitalised NBFCs. In the process, many have given up on hefty stock options, effectively taking a big hit on compensation.
The country’s shadow banking sector has been reeling from a liquidity crunch and crisis of confidence, leading to numerous licence cancellations by the central bank. Layoffs could be the next step, particularly at some of the small firms that were hit harder than others by the developments, fear industry insiders.
According to head hunters, the liquidity crunch has hit even the most prudently run organisations. Recruitment at even the big players has dropped, with senior-level mandates down by more than 50%.
Senior talent that has moved out has gone to banks, fintech companies or stable NBFCs with deep pockets. Many from small organisations have compromised on stock options.
The average headcount remained flat in the past six months, compared with an increase of 15-20% in the first half of 2018. Several companies put hiring plans on hold as they had to conserve capital amid tightening liquidity.
Compared with the first half last year, when NBFCs were the most aggressive recruiters in financial services, the tide has completely turned this year where the sector has largely rolled back plans to hire at the mid and senior levels.
Hiring now is happening primarily in roles in sales, technology, analytics and compliance. A handful of NBFCs are using the opportunity to get in good talent from other firms.
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