Recruitment Trends In Housing Finance Sector In India 2017

Housing Finance is a high-flying sector these days and is tipped to grow at a phenomenal 36% P.a. Banks and financial institutions have brought sea changes in their strategies and there is the shift from “seller’s market” to “buyers market”. Liberal tax incentives by the govt, low and competitive interest rates for housing finance has made housing finance sector as the red-hot sector.

Broadly, the providers of housing finance are categorised into three categories:

(1) Housing Finance Companies (HFCs),

(2) Banks and

(3) Housing Co-operative Societies

housing finance

Housing Finance Companies are losing their traditional dominance to Commercial Banks. With rising demand for mortgages and growing incomes, banks began to focus on rapidly building their mortgage portfolios and now have the larger market share, providing funding to about 75% of the market.The several factors responsible for the growth of this sector. These include Continuously rising demand, affordability of real estate, rising level of disposable income, increasing competition, lowering interest and Government policies. The Housing Finance Companies and Indian Commercial Banks control 90% of the market.

The shift from “Traditional India” to “Modern India” surely will bring more demand for housing finance. If we look at the Mortgage to GDP ratio it is up to 2% only whereas in advanced countries it is up to 51%, so there is an ample scope for growth in this sector. These are some of the indications which signal bright future for the housing finance Industry.

Recruitment Trends in Housing Finance Sector

Housing finance is one of the leading employment generating industries of the Indian economy. A jump in talent demand is seen in the year 2017. Talent acquisition teams or individuals are required to show their creativity, speedy execution, leadership skills, communication and convincing skills to hire talent in this industry.

Trends That Will Impact The Housing Finance Sector:

More Jobs: New banking licenses, policy interventions like “Housing For All by 2022” mission, new housing finance companies and “Smart Cities Concept” will create a significant demand for talent across levels. The recruitment consultants must have their hands in addressing the challenge of getting the right talent at the right time and at the right cost.

Support Roles: With more technological advancements and business process re-engineering, organisations achieve more work with fewer people. But this is advantageous only in routine and back office operations. Demand for customer-facing roles will be on the upswing. The hiring demand in these roles go up considerably and the increase would be around 15 percent. Most of this demand come from the junior and middle-level management employees across the rural and urban areas of the country.

Metros To Lead: Given that implementation of the “Housing For All” scheme and “Smart Cities” project will take place in the periphery of metros. This indicates that large portion of manpower demand will come from these regions and also from tier II and tier III cities, where there is a likelihood of generation of fresh demand for affordable housing.

Talent Retention: Many new entrants come in the housing finance industry in the past few years and increased the competition. This will continue to impact the overall manpower requirement in 2017 as well as make identification and retention of quality staff more challenging than ever before. To overcome this issue, organizations will need to devise a robust appraisal policy to reward talented employees through salary increment and wealth creation mechanisms etc. to retain top talent.

Solution To Skill Shortage: The shortage of trained manpower will be acute in the coming year, especially in remote areas where fresh demand for affordable housing is likely to come up. This will make creating a pool of trained manpower essential for housing finance companies. Also, increased hiring from campuses will bridge the gap and build future talent. The industry has primarily relied upon references/industry experts for lateral hiring and this will continue to remain the most popular hiring tool.

Conclusion:

Skillventory is specialised in analysing the housing finance market. We can show you how to hire top talent with the complete understanding of external factors, how changes will affect your organisation and deliver strategic direction to ensure you remain a highly competitive and highly attractive employer.

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