West Asia conflict dampens senior hiring demand
Bengaluru: India’s executive search market is beginning to slow as the continuing West Asia conflict, inflation concerns, a weaker rupee and softer corporate sentiment weigh on hiring decisions.
Search firms said several clients have shifted to a wait-and-watch approach amid rising input costs, supply chain concerns and the prospect of price hikes across sectors. Consumer-facing industries, particularly FMCG, retail, consumer durables and real estate, have seen senior-level hiring moderate.
Overall, companies are prioritising critical and replacement hires while scaling back on growth mandates.
“The overall market is slightly sluggish… and we are definitely seeing an impact on the consumer side given the rise in input costs and demand compression,” said Shiv Agrawal, managing director at search and talent advisory firm ABC Consultants.
According to Agamjeet Dang, CEO of executive search firm Executive Access, companies are focusing on controlling costs.
“Companies are taking time to make their decisions. In the long-term story, there will be no impact, but in the short to medium term, there is a focus on ensuring that costs don’t balloon.”
Most companies are proceeding only with critical hires, while growth-oriented recruitment has slowed, he said. Replacement hiring has weakened as well.
“In a market like this, many candidates start developing cold feet. The replacement market itself goes down; there are fewer positions to fill,” he added.
Industry executives said Prime Minister Narendra Modi’s appeal for austerity had reinforced concerns over the economic impact of the West Asia conflict, leading companies to reassess near-term business assumptions.
With several IPO plans being deferred, growth expectations flattening and candidates becoming increasingly hesitant to switch jobs, industry executives said the current quarter would determine whether the slowdown remains temporary or broadens into a deeper pullback in senior hiring.
“No one has pulled back or delayed yet, but May and June will be important,” said Navnit Singh, chairman at executive search firm Korn Ferry. “Everyone is worried about price hikes, rising inflation, the falling rupee and spiralling crude oil prices.”
The India head of a search firm, who did not wish to be named, said the impact may not be fully visible in the first quarter of the financial year but could become more pronounced from the second quarter onwards.
Cost pressures have gone up and if this situation persists, companies will see poorer results, he said.
“’Has everyone put every mandate on hold? No. But can we expect to grow this year? Unlikely,’” he said.
He said the market could recover sharply once there is clarity on the conflict.
“While the short-term outlook is cloudy, we expect a big bounce-back the moment we see a definitive end to the conflict.”
Search firms said several clients have shifted to a wait-and-watch approach amid rising input costs, supply chain concerns and the prospect of price hikes across sectors. Consumer-facing industries, particularly FMCG, retail, consumer durables and real estate, have seen senior-level hiring moderate.
Overall, companies are prioritising critical and replacement hires while scaling back on growth mandates.
“The overall market is slightly sluggish… and we are definitely seeing an impact on the consumer side given the rise in input costs and demand compression,” said Shiv Agrawal, managing director at search and talent advisory firm ABC Consultants.
According to Agamjeet Dang, CEO of executive search firm Executive Access, companies are focusing on controlling costs.
“Companies are taking time to make their decisions. In the long-term story, there will be no impact, but in the short to medium term, there is a focus on ensuring that costs don’t balloon.”
Most companies are proceeding only with critical hires, while growth-oriented recruitment has slowed, he said. Replacement hiring has weakened as well.
“In a market like this, many candidates start developing cold feet. The replacement market itself goes down; there are fewer positions to fill,” he added.
Industry executives said Prime Minister Narendra Modi’s appeal for austerity had reinforced concerns over the economic impact of the West Asia conflict, leading companies to reassess near-term business assumptions.
With several IPO plans being deferred, growth expectations flattening and candidates becoming increasingly hesitant to switch jobs, industry executives said the current quarter would determine whether the slowdown remains temporary or broadens into a deeper pullback in senior hiring.
“No one has pulled back or delayed yet, but May and June will be important,” said Navnit Singh, chairman at executive search firm Korn Ferry. “Everyone is worried about price hikes, rising inflation, the falling rupee and spiralling crude oil prices.”
The India head of a search firm, who did not wish to be named, said the impact may not be fully visible in the first quarter of the financial year but could become more pronounced from the second quarter onwards.
Cost pressures have gone up and if this situation persists, companies will see poorer results, he said.
“’Has everyone put every mandate on hold? No. But can we expect to grow this year? Unlikely,’” he said.
He said the market could recover sharply once there is clarity on the conflict.
“While the short-term outlook is cloudy, we expect a big bounce-back the moment we see a definitive end to the conflict.”
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