Manufacturing, engineering firms up hiring from smaller cities

August 20th, 2011 - 7:24 pm ICT by IANS  

New Delhi, Aug 20 (IANS) Companies, especially from manufacturing and engineering sectors are increasingly hiring people from smaller cities to minimise costs and reduce attrition rate, a survey revealed Saturday.

Manufacturing and engineering sector is leading with 31 percent total hiring from Tier-II and Tier-III cities, followed by retail sector at 23 percent, and insurance, banking and other financial services at 19 percent, said the survey conduced by recruitment consultancy firm

“Tier-II and Tier-III cities are witnessing the growth in recruitment activity compared to metro cities,” Rajesh Kumar, chief executive officer and founder of, said in the report.

Kumar said companies are hiring an increasing number of people from smaller cities because they were available to work on lower salary and attrition rate among the employees from smaller cities was also low.

“The meditative reason to hire from these cities is raising salaries and high attrition experienced from hiring in metros,” he said.

In the first six months of the year, manufacturing and engineering sector witnessed 14 and 11 percent growth in hiring respectively, Kumar said.

The survey was conducted between mid-July to mid-August. Some 321 employees and 769 recruitment consultants from 12 industry segments participated in the survey.

Of the total firms surveyed, 47 percent hired new people from Tier-II cities in the first half of the year, while 28 percent hired from Tier-III cities.

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