Active job postings – or job opening advertisements by companies – in nine mega cities decreased 16% year on year in January while they increased 12% in 30 tier-2 locations, according to the study that tracked job portals, LinkedIn and internal company job posting.
There were 12,500 active job postings in these tier-2 locations last month against 140,000 job postings in the mega cities, as per the study shared exclusively with ET.
While the number of job openings are much smaller in tier 2 locations compared with the mega cities, they are growing at a faster pace led by startups, mid and small IT services companies, BFSI (banking, financial services and insurance) firms, health, and wellness.
“Enterprises on the talent hunt look for professionals with low frictions to onboard employment. On this front, tier-2 and tier-3 locations have become good catchment areas for tech and non-tech talent alike,” Prasadh M S, head – workforce research and analytics at Xpheno, told ET.
Companies that have stepped up hiring from smaller towns include Tech Mahindra, Airtel, LTIMindtree, and MakeMyTrip. HR heads cite higher stickiness or lower attrition, diverse talent pool, and lower costs among the reasons for this trend.
“Just like the new normal times (post Covid-19 outbreak) have enabled ‘work from anywhere’ for employees, it has also encouraged employers to broaden their hiring outreach without any location constraint,” said Manoj Shikarkhane, chief human resources officer of LTIMindtree.
The Mumbai-based IT services and consulting company has nearly 90,000 professionals as part of its global workforce.
Yuvaraj Srivastava, group CHRO of MakeMyTrip, said, “Organisations need to expand their reach to unexplored centres and cities to get the right talent. With the advanced hiring technologies and vast network of tier 2 and 3 campuses in mini metros this effort has become relatively easier.”
The Nasdaq-listed travel service provider has started exploring diverse college campuses beyond metros for campus recruitment.
Online hiring and interviewing are also enabling companies to evaluate and onboard candidates from different parts of the country.
Amrita Padda, chief people officer of Bharti Airtel, said, “Hiring talent from tier-2 and tier-3 locations will help increase the regional diversity in addition to offering a diverse range of career possibilities to the many bright young talents that are based there.”
Tech Mahindra is setting up physical centres in smaller cities including Coimbatore, Thiruvananthapuram, Visakhapatnam, Nagpur, Bhubaneswar, Chandigarh, Indore, and Vijayawada.
“This will help us diversify talent while we are also leveraging the gig workforce, as talent can be found anywhere,” said Harshvendra Soin, global chief people officer of the IT services firm. “New positions are filled based on ‘best-fit’ talent to deliver outcomes without any location constraints,” he said.
“At Tech Mahindra, we believe that tier-2 and tier-3 cities are emerging as future talent hubs that could propel the next stage of growth,” Soin added.