Broking cos could be hiring again
The scary phase for employees in the broking industry seem to be over at least for the moment. For a while, business was lacklustre with targets not being met and clients not easy to retain. All this led to salaries being cut, no bonuses and a series of layoffs across the industry. Now, with the prospect of a stable government at the Centre and the market reacting to that by surging over 2,000 points, the scenario is expected to change. This is expected to translate to increasing volumes and the return of the investor which, in turn, will increase the need for manpower.
“The mood has turned euphoric and positive. Layoffs will be reversed in retail broking and broking houses will expand, leading to more demand for people,” says Devesh Kumar, head of equities, Centrum Broking. With a stable government at the Centre, investors are expected to be confident and get back to the equities market.
Dinesh Thakkar, founder chairman and MD of Angel Broking is very optimistic as far as job creation in the broking industry is concerned over the next five-year period. “We anticipate a series of financial reforms by the new government, which will see the broking industry grow 30%,” he adds. This could lead to demand for manpower across the spectrum of the broking business as well as the financial services industry at large. Importantly, the recruitment process, he added, will not take off in a big way this year since 15% of the broking industry remains under utilised.
“With markets going up, times will be good for investors and volumes will move up. In the process, brokers will need to expand and there will be demand for good people,” said Anish Jhaveri, head of equities, Antique Broking. It is, however, felt across the industry that broking outfits will be a wee bit more cautious while recruiting people. “They will have to learn to work with a lean and fit team,” said a broker. According to Reliance Money managing director Sudip Bandyopadhyay, the broking industry will definitely start relooking at expansion opportunities. “Cautious optimism will be the guiding factor in deciding issues like hiring of manpower,” he adds.
According to Motilal Oswal Securities chairman and MD Motilal Oswal, it is still early to speak of the changing scenario. “The job market is cyclical. It will take time to pick up and one will have to wait and watch for 2-3 months, before expanding operations,” he said.