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Haryana jobs quota to impact 1.5 lakh; firms look for exit route

With lack of skills to match jobs, NASSCOM Survey says companies are planning to move operations and ramp down investments due to the new reservation rules in Haryana

Rukmini Rao | March 23, 2021 | Updated 11:02 IST
Haryana jobs quota to impact 1.5 lakh; firms look for exit route
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IT industry body NASSCOM has conducted a survey to assess the impact of the notification of The Haryana State Employment Of Local Candidates Act, 2020 which aims to reserve 75 per cent jobs in private companies for local candidates. Out of the 73 companies that participated in the survey and have over 144,000 employees in Haryana, 80 per cent see this move impacting their operation and investment plans. They either intend to shift operations to other states or increase hiring in other states, the survey found.

According to NASSCOM, there are nearly 500 plus IT-ITeS companies in Haryana that employ more than 400,000 people directly. The new laws will impact about 1.5 lakh current jobs or 37 per cent of all the IT-ITeS jobs. The survey revealed that employees earning up to Rs 50,000 a month formed nearly 44 per cent of the workforce. Eighty-one per cent of people at such jobs had their place of residence outside Haryana. Jobs at IT and ITES industry of those such as Customer Care Representatives, Operations Team Managers, MI Analysts, Workforce Management Analysts, Payroll Specialists, HR Executives, Finance Executives, Associate Research, Data Analyst, Graphic Designer, Marketing Associate, Operations Associate, Product Specialist, Specialist Research, Software Development and Support, Production Operations, Problem specialist largely fall in this bucket.

Most companies see an immediate impact on their investment as well as recruitments plans in the next 12 months, some say the impact may be limited from a near term basis as the hirings are mostly done. However, in the mid-long term (1-yr beyond) majority of the companies expressed concerns. They said they would consider shifting operations to other locations to source talent as the law would increase the compliance burden and limit industry's ability to hire people at will. They also said such legislation would make it difficult to adopt and follow diversity and inclusion policies and initiatives and will lead to discriminations, the NASSCOM survey report said.

Most companies in the survey pointed out the difficulty in implementing this comes from the talent gap. The local candidates have skill gaps both technical and soft skills when it comes to taking up jobs where salaries are less than Rs. 50,000 per month. Local candidates have problems with communication skills, both spoken as well as written, AI and Machine Learning Skills, Analytical and Statistical skills, Finance and Accounting, Programming skills, Data Science, RandD skills, Engineering and technical skills, the surveyed found.

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