Ma Foi Employment Survey

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Ma Foi Employment Survey
2006
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The Agenda

• Introduction to Ma Foi
• MEtS Introduction
• Ma Foi Employment Index (MEI)
• MEtS Employer survey
• Overview - Respondent Sample
• MEI
• MEtS MeM
• Conclusions

3
Introduction to Ma Foi
4
Mission
To emerge as the most respected HR Service
Provider in the world, anchored on values
of growth, dignity, transparency and diversity.
5
Spirit of Ma Foi

• Ma Foi will emerge as the prime fountainhead of
  new meanings in HR. We will partner with
  organizations to unleash human potential,
  enhancing the net worth of their human capital.
• We will bring passion and professional rigour to
  address stated as well as latent needs of our
  customers. Our offerings will add knowledge,
  bring insights and be process-driven. Our
  customers will experience us as warm, deeply
  human and trustworthy.
• Our credo is to
• serve with dignity
• learn with humility and
• grow with integrity

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Profile of Ma Foi

• Grown to be the largest HR service provider in
  India.
• Group company of Vedior N.V., the Worlds Leading
  Specialist Staffing Major with a turnover of Euro
  6.85 Billion in 2005.
• Revenue grew to Rs. 2180 million (2005) as
  against Rs. 1220 million (2004) reflecting a CAGR
  of 75 over the last 14 years.
• Worked for over 164 Fortune 500 organizations.
• Globally present in 8 countries through 73
  offices India, UAE, UK, Singapore, Sri Lanka,
  Malaysia, Oman and USA.
• 922 core staff 25021 on deputation.
• 1,09,298 placed in 31 countries, incl. 732 in GM
  and above levels.
• Value / Process driven - ISO 90012000
  Certification obtained from TUV.

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Ma Foi India Presence 65 Offices in 49 Locations
Jammu
Himachal Pradesh
Ludhiana
Dehra Dun
Chandigarh (2)
New Delhi (3)
Allahabad (2)
Guwahati
Agra
Lucknow
Jaipur
Patna
Gwalior
Siliguri
Jamshedpur
Bhopal
Ahmedabad
Baroda
Indore
Kolkata(3)
Surat
Nagpur
Raipur
Bhubaneshwar(2)
Nashik
Mumbai (2)
Aurangabad
Overseas Presence 9 (UAE, UK, Singapore, Sri
Lanka, Malaysia(2), Oman, Abu Dhabi and USA)
Pune (4)
Vizag(2)
Hyderabad (2)
Goa
Vijayawada
Tirupathi
Bangalore (3)
Chennai(5)
Mangalore (2)
Pondicherry
Hosur
Mysore
Mayiladuthurai
Coimbatore
Trichy (2)
Cochin(2)
Madurai
Trivandrum (2)
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Profile of Vedior NV

• Vedior NV is the world's leading specialist
  staffing major and third largest staffing company
  with annual 2005 sales of Euro 6,851 million.
• The Group operates in 44 countries across Europe,
  North America, Australasia, South Africa, South
  America, Middle East and Asia.
• Vedior provides a broad range of staffing
  services including temporary staffing, permanent
  placement and other employment-related services.
• Vedior offers temporary staffing in both the
  traditional administrative / light industrial
  and specialist sectors such as information
  technology, healthcare, accounting, engineering
  and education operation under many different
  brand names.
• Vedior has over 2,300 offices around the world.
• Vedior is listed on the pan European Euronext
  stock exchange

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Ma Foi Service Offerings

• MA FOI MANAGEMENT CONSULTANTS LTD
• Permanent Staffing
• Flexi Staffing
• Assessment
• Vendor Mgmt Services
• Ma Foi Academy Career Training
• IT / ITES
• Retail / Sales
• Technical Publishing
• Instructional Design
• GEM
• CareerCraft

• MA FOI CONSULTING SOLUTIONS LTD
• HR Consulting
• HR Outsourcing
• HR Automation
• MA FOI GLOBAL SEARCH SERVICES LTD
• Executive Search
• Interim Management
• HR Statistical Research

• AGENSI PEKERJAAN SELECT
• APPOINTMENTS SDN BHD
• Executive Search
• Permanent Staffing
• Flexi Staffing

• MINVESTA INFOTECH LTD.
• Products
• Projects
• Services

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MEtS Introduction
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Ma Foi Employment Survey (MEtS)

• The Ma Foi Employment Survey (MEtS) is a study on
  the Indian employment trends and opportunities
  conducted by Ma Foi Management Consultants Ltd.
  The survey is undertaken on a half yearly basis.
  
• Ma Foi Employment Survey (MEtS) has gone through
  a makeover since its inception. It now captures
  the industry trends through 2 channels.
• The first is a sample survey, conducted by an
  independent agency TNS, which captures the
  employers response on the net increase/decrease
  in their employee numbers and is represented
  through the Ma Foi Employment Index (MEI).
• The MEI measures the pace of recruitment activity
  of the employers by indicating the net percentage
  growth in their employee base over the past 6
  months.

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Ma Foi Employment Survey (MEtS)

• The second channel is the MeM (Macro economic
  Model). The MeM is a new macroeconomic model
  developed by Ma Foi, along with an ELP team from
  ISB, with the intention of making the survey more
  robust and dynamic.
• The Macro-Model is a statistical model based on
  the economy as well as industry specific factors
  that envelope all the firms in a particular
  representative industry sector.
• For each sector, a set of 3-4 macro factors have
  been identified that affect the labor movement
  and these factors, which are specific to each
  industry, have been moulded into a statistical
  model to assess the growth or otherwise in the
  total organized labor market.

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The Ma Foi Employment Index (MEI) An
Introduction

• The MEI is a moving average and is focused on
  aggregating employment trends across 9 industry
  segments.
• MEI indicates the prospective net percentage
  growth in employment over the present levels. It
  is based on the absolute no. of jobs being
  created in the first half across the respondent
  companies over their current employee base.
• Methodology
• Responses were received from 2143 HR decision
  makers across Public Ltd, Private Ltd and Public
  sector companies across 9 industry segments.
• Field work done by TNS, an independent market
  research agency, utilizing their network of 11
  field offices across India.

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MEtS Employer survey
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The 9 Industry Sectors
1) Banking and Financial Services 2)
Construction 3) Communication and Transport 4)
Energy 5) IT and ITES 6) Mining 7)
Manufacturing 8) Retail 9) Other Services
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Sectors and Sub Sectors

• BFSI
• Banking
• Financial Services
• Insurance
• COMMUNICATION TRANSPORT
• Logistics
• Tele communication
• Courier Cargo Services
• Aviation Services
• Transport Services
• CONSTRUCTION
• Infrastructure Companies
• ENERGY
• Oil Gas Companies
• Power Generating Companies

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Sectors and Sub Sectors

• MANUFACTURING
• Pharma Companies
• Industrial Agricultural Manufacturers
• Textile Garment Manufacturing
  companies
• Auto Mobile Manufacturing Companies
• Casting Forging Companies
• Aluminum Steel Companies
• Consumer Goods
• MINING
• Coal, Iron ore and Mineral exploration
  companies
• RETAIL
• Food Chain Outlets
• Retail Garments
• Retail stores
• OTHER SERVICES
• Hotels, Resorts Travel Agency

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Respondent Sample Overview
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Respondent Profile by Ind. Sectors
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Respondent Distribution by Ownership
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Respondent Split by Emp Nos
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Ma Foi Employment Index MEI
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MEI by Industry Segments
Overall MEI Across 9 Ind Seg2.89
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MEI Industry Leaders

• In this track we have also calculated the MEI
  for 290 Industry leaders
• i.e. companies which are considered
  representative of their industry segment.

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MEI Industry Leaders
Overall MEI Across 9 Ind Seg2.95
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Industry Specific Factors affecting the Employee
Numbers

• The survey revealed the following factors cited
  by the respondents
• Growth in Real GDP
• Growth in industrial output
• Growth in per capita GDP
• FII in Primary Market
• Government Policies
• Bank Lending Rate
• Growth in Urbanisation
• Increase in Road Density
• Growth in Tele Density
• Growth in Exports
• Growth in Energy consumption
• Growth in Outsourcing Activity

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Company Specific Factors affecting the Employee
Numbers

• The survey revealed the following factors cited
  by the respondents
• BFSI
• Increase
• Growth in Business
• Increase in number of Branches (Expansion Mode)
• Funds Transactions has doubled
• Decrease
• Reorganization of companies
• Retirement and Better Opportunities
• Advancement of Technology
• Company losses Low Productivity
• No Change
• Government has banned Recruitment
• Computerization of work therefore no requirement
• Issue of VRS. so not permitted to recruit for 3
  years

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Company Specific Factors affecting the Employee
Numbers

• Communication Transport
• Increase
• Expansion Mode
• Growth in Business
• Business Diversification
• Decrease
• Better Opportunities in other sectors and cities
  
• Retirement and VRS of Employees
• Decrease in orders from Customers
• No Change
• No Business Expansion plans
• No Requirement in the company

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Company Specific Factors affecting the Employee
Numbers

• Construction
• Increase
• Expansion Mode
• Growth in Business
• Due to increase in Operations
• Increase in number of New Projects
• Decrease
• Better Opportunities in other sectors and abroad
  
• Retirement and VRS of Employees
• No New projects
• No Change
• No Business Expansion plans
• No Requirement in the company

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Company Specific Factors affecting the Employee
Numbers

• Energy
• Increase
• Growth in Business
• Increase in production
• New Projects
• Decrease
• Better Opportunities and pay packages abroad
• Retirement and VRS
• No Change
• Business Growth is slow
• No expansion plans
• Stringent government policy

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Company Specific Factors affecting the Employee
Numbers

• IT ITeS
• Increase
• Growth in Business
• Increase in number of delivery centers
• New Projects
• Increase in exports
• Better quality of talent in India
• Decrease
• Business running in Loss
• No new projects
• Better Opportunities in other companies
• No Change
• No Business
• No expansion plans

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Company Specific Factors affecting the Employee
Numbers

• Manufacturing
• Increase
• Growth in Business
• Increase in production
• Good export orders
• Diversification of Business
• Decrease
• Competition and Technology changes
• Downsizing of the Company
• Due to reorganization
• Better Opportunities abroad
• No Change
• No demand for product
• Business is Stagnant
• Have sufficient Manpower

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Company Specific Factors affecting the Employee
Numbers

• Retail
• Increase
• Increase in number of Business outlets
• Increase in production
• Diversification of Business
• Decrease
• Competition
• Better Opportunities from other companies
• No Change
• No expansion plans
• Not much growth in business

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Company Specific Factors affecting the Employee
Numbers

• Mining
• Increase
• Increase in production
• Recruitment goes on to maintain a constant
  strength
• Decrease
• No business
• Better Opportunities from other companies
• No Change
• No expansion plans
• No requirement of manpower

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Company Specific Factors affecting the Employee
Numbers

• Other Services
• Increase
• Expansion of Business
• Expansion of new divisions
• Increasing requirement in Operations
• New projects and orders
• Decrease
• Business running under loss
• Better wages in other companies
• Retirement VRS
• No Change
• No expansion plans
• Growth is slow

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MEI by Ownership
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MEI by Employee Nos
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Macro economic Model (MeM)
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MEtS Macro Economic Model ( MeM)
Variables include Macro economic factors like ?

• The Macro-Model is a statistical model based on
  the economy as well as industry specific factors
  that envelope all the firms in a particular
  representative industry sector
• For each sector, a set of 3-4 macro factors have
  been identified that affect the labor movement
  and they have been moulded into a statistical
  model to assess the growth or otherwise in the
  total organized labor market

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Methodology

• The macro economic variables for each industry
  segment have been arrived at by identifying an
  exhaustive list of factors that could drive the
  labour movement.
• Thereafter, the statistical model was run to
  determine which of these factors more
  significantly explained the labor movement.
• The sectoral models are based on Employment
  figures as published by Ministry of Labour
  (Organized Labor Force) for the period between
  1991 to 2003.
• The macroeconomic variables data are based on
  databases published by the related Ministry
  and/or government sources as well as
  internationally reputed databases viz. Economist
  Intelligence Unit etc.

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PREDICTIONS BASED ON THE MACRO MODEL

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Conclusions

•        
• 1. The Indian employment scenario is clearly on
  an upswing. The Ma Foi Employment Survey
  reverberates and reinforces the upswing through
  both the employer survey as well as the macro
  economic model.
• While the employers survey reveals an overall
  MEI of 2.89, clearly some sectors have set a much
  higher pace for their growth. The 5 leading
  sectors are IT ITES, Construction,
  Communication Transport, Retail and Other
  Services.
• The MeM too gives an estimation of 10,30,040
  jobs that would be generated through the year as
  against the 6,21,510 jobs predicted at the
  beginning of the year. The lead according to the
  MeM would be taken by sectors like IT ITES,
  Other Services, Manufacturing, Energy, and
  Retail.

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Conclusions

• Other interesting facts
• 2. Of the 2143 respondents covered in the MEtS
  employers survey, more than 52 of the
  respondents have increased their workforce, while
  about 37 have not affected any change in H1.
• 3. As per the survey, in the top 20 hirers, the
  maximum numbers have been projected from the
  IT/ITES sector followed by Manufacturing,
  Transport Communication, Energy and BFSI. 60
  of these companies are from the private sector.  
• In terms of rationalization, the lead was taken
  by Manufacturing followed by BFSI, Mining,
  Energy, and Transport Communication. Half of
  these companies lie in the public sector.

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Conclusions

• 4. Analysed by ownership, the private sector
  companies have clearly taken a lead in generating
  employment with an MEI of 6.26. The contribution
  of the public sector was comparably negligible at
  0.09, while the public sector was at a steadfast
  2.44.
• 5. Employee strength wise, companies with
  employee strength in all three categories, up to
  100, between 101-500 and 501-1000 were running
  neck to neck with the MEI of 4.6, 4.93 and 4.82
  respectively, while companies in excess of 1000
  employees had a relatively lower MEI of 2.56 .
• It would be worthwhile to remember that absolute
  number projections for companies with employees
  in excess of 1000 is more but given their
  employee base, percentage increase is less.

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Conclusions

• 6. The results of the employers survey for the
  290 industry leaders showed that the industry
  leaders are leading from the front with a higher
  overall MEI of 2.95. About 63 of the
  respondents have increased their workforce, while
  about 28 have not affected any change in H1.
• In terms of industry sectors, the overall
  consistency was maintained with the 5 lead
  sectors here too being IT ITES, Construction,
  Communication Transport, Retail and Other
  Services but with higher fluctuations in their
  MEIs ranging from 16.15 and 10.67 in IT ITES
  and Construction to 3.92, 2.59 and 2.14 in
  Communication Transport, Retail and Other
  Services respectively.
• Similar trend of the private sector players
  maintaining the lead here is seen with an MEI of
  14.06, though in terms of employee strength,
  companies with less than 100 employees clearly
  outshone the others with an MEI of 14.29.

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Thank You