Tier 2 and 3 hiring is rising. What recruiters should change now
A Genius HRTech survey shows more hiring beyond metros, but recruiters still need to screen for connectivity, infrastructure and role fit before scaling.
Sep 20, 2026 · 3 min read · News desk
Genius HRTech Limited says hiring is moving further into tier II and III cities. In its August survey of 1,729 employers, 69 per cent said they had raised hiring from those markets by more than 30 per cent over the last two years.
For hiring teams, the main lesson is not only lower cost. The same report says 60 per cent see infrastructure and connectivity as the biggest barrier, while 64 per cent think these cities already offer industry ready talent across most functions.
What did the Genius HRTech report find about non metro hiring?
Hiring is no longer centred on metros. In Genius HRTech Limited's August survey of 1,729 employers, 69 per cent said recruitment in tier II and III cities rose by over 30 per cent in two years.
The shift may continue. Another 55 per cent expect most hiring to move to tier II and III cities within three years. If you hire at scale, widen your sourcing map now.
Why are employers hiring more from tier 2 and 3 cities?
Money is part of the story, but not the whole story. The report says 39 per cent of respondents picked cost efficiency as the main advantage. Yet it also found 26 per cent pointed to stronger loyalty, 22 per cent to lower attrition, and 13 per cent to access to untapped talent.
That matters for recruiters because the case for smaller cities is broader than cheaper hiring. If your team only chases lower salary levels, you can miss the retention and supply benefits the survey respondents highlighted. Those gains may matter more in roles where backfills and drop offs hurt operations.
Which roles and sectors should recruiters prioritise first?
Manufacturing and engineering may lead demand here. About 37 per cent of respondents expect the strongest hiring need in smaller cities in the next two to three years. Plan by role and city.
The sample also covered sectors such as FMCG, retail and e-commerce, and finance and BFSI. That does not prove equal demand in every field. It does show the shift is being tracked across a broad employer base, not inside one niche alone.
What can go wrong when hiring beyond metros?
The biggest operational risk in the survey is basic readiness. The report says 60 per cent named infrastructure and connectivity as the main hurdle to expanding hiring beyond metro cities. That means your team needs to check internet stability, device access, commute practicality and shift fit before offer stage.
At the same time, 64 per cent said tier II and III cities already have talent that is ready for industry across most functions. Recruiters should read those two findings together. There is usable supply, but you still need location specific screening so avoidable joining failures do not erase the benefit.
Genius HRTech said the next task is better infrastructure and deeper specialist skills.
How should hiring teams build stronger non metro pipelines this week?
Start with role design, not city labels. Sort open requisitions by location flexibility, infrastructure dependence and skill depth. Then choose a short list of target markets by function. A manufacturing role may need a different city map from a retail or BFSI opening.
Next, build local channels before demand spikes. That can include colleges, training centres, staffing partners and referral networks in each target city. Track non metro hiring separately for offer acceptance, joining rate, screening pass rate and retention. Business Standard first published one version of the report on September 20, 2026 at 3:24 PM IST.
Our take
What hiring teams should do this week
The report supports broader non metro hiring, but it also names the constraint. Build the pipeline with local reality checks from day one.
- Map open roles by location flexibility, infrastructure dependence and skill depth before you widen sourcing.
- Pick 5 to 10 target cities by function, not by a generic tier label alone.
- Test connectivity, commute, device access and shift feasibility during screening.
- Set up local source partners in each market, including colleges, training centres and staffing firms.
- Track non metro results separately for acceptance, joining, screening pass rate and retention.
Sources
- Hiring expands beyond metros as tier II, III cities gain ground, says report. The Economic Times (Jobs), Sep 20, 2026.
- Hiring expands beyond metros as tier II, III cities gain ground: Report. Business Standard, Sep 20, 2026.
- Companies are hiring more people from smaller cities citing cost efficiency, loyalty. The Hindu BusinessLine, Sep 20, 2026.
Written by the AI Interview Agents News Desk with AI assistance. Every figure is checked against the sources above. Spot a mistake? Write to contact@aiinterviewagents.com. Read how we check our work.
Frequently asked questions
How many employers were surveyed in the Genius HRTech report?
The report says Genius HRTech Limited surveyed 1,729 employers in August across sectors such as finance and BFSI, engineering, and retail and e-commerce.
How many employers said hiring from tier II and III cities increased?
The survey says 69 per cent of organisations increased hiring from tier II and III cities by more than 30 per cent over the last two years.
What is the biggest risk when hiring beyond metros?
According to the report, 60 per cent of respondents said infrastructure and connectivity are the biggest challenge to expanding hiring beyond metro cities.