Hinterland, gigs, AI to set hiring theme for 2026

The Chinese zodiac predicts that 2026 will be the Year of the Fire Horse, symbolizing bold decisions, ambition and sharply moving away from the strategic thinking that was 2025, the Year of the Wood Snake.

- Devina Sengupta

In India, employers and employees will witness three prominent trends in 2026, say experts. First, the spotlight will shift to smaller cities and towns as companies look for the right talent and metros lose their lure. The second change will be the dominant role that the gig workforce will play. Thirdly, the deployment of artificial intelligence (AI) will remain an integral aspect with concerns on how to upskill employees without letting go of the high performers.

Hinterland hiring

About 18 months ago, recruitment firm CIEL HR opened a hiring hub in Patna where 25 recruiters scout for talent from neighbouring Chattisgarh and Odisha states and the smaller towns of Bihar. The aim was to cater to the hiring needs of retail, financial services, consumer goods, and manufacturing clients. A similar hub was created earlier in Mysuru in Karnataka as well to tap into IT talent.

“The demand from smaller towns will grow because the total cost of hiring and retaining an employee is 5-10% lower in the longer run for companies as those who migrate can be held onto for a longer period than those who are from the larger metros with their offices and homes in the same city,” said Aditya Narayan Mishra, managing director and chief executive officer of CIEL HR.

Mishra pointed out that companies have started employing a blended workforce where a major chunk will be from the same city, 20-25% from nearby towns and the rest from other states. This is largely in the case of temporary staffing, where the employee works at the client's site, but will be on the payrolls of the vendor.