How Technological Advancements Aid Expansion and Impact Job Creation

Earlier this year, the Finance Minister emphasized India’s need for significantly larger banks, potentially three times the size of SBI, to meet increasing demand. This highlights critical growth imperatives for the sector. The move towards technology-driven financial inclusion has greatly influenced India’s job market, creating a demand for skilled professionals.

For instance, job growth in the BFSI sector spans various levels: Entry-level positions (0-3 years) account for 23%, intermediate roles (4-6 years) for 21%, and mid-senior level positions (7-10 years) for 16%. There is strong demand for BFSI jobs in India particularly for sales and tech roles, driven by the sector’s focus on expanding digital services and improving customer engagement. The need for salespersons to promote credits is increasing, prompting the hiring of 25-30k frontline salespersons in Q1 alone, with expectations for further growth as demand rises and infant attrition remains a persistent challenge in the sector.

Recent data highlights remarkable growth in credit card sales, insurance, and demat account openings. India, traditionally not credit card-centric, is witnessing a shift with over 100 million cards in circulation, representing a 5.5% penetration among its 1.4 billion population. The introduction of UPI-based credit cards is expected to further boost growth, with FY24 transactions totaling Rs 1,64,586 crore, up 20% from the previous year. Demat accounts have surged to 150 million, highlighting significant workforce involvement in their management. The insurance sector employs over 2.2 million sales agents, underscoring its expansive reach and employment potential.

Technology significantly enhanced sales efficiency and reach across sectors. Salespersons use CRM systems and digital tools for precise audience targeting and effective customer relationship management. Digital platforms streamline onboarding with e-KYC processes, ensuring swift and secure client verification. Automation and AI-driven analytics provide insights into customer behavior, enabling personalized sales strategies and higher conversion rates.

The industry’s evolution requires upskilling new entrants to meet standards and foster financial inclusion in untapped regions, expanding banks’ outreach capabilities. Moreover, the BFSI sector is increasingly focusing on temp staffing to manage its varying demands. This approach offers flexibility and caters to the sector’s evolving needs, ensuring that skilled professionals are available for short-term assignments and peak times. By prioritizing temp staffing, organizations can quickly adapt to market changes and maintain a competitive edge. Temp staffing thus becomes a crucial strategy for staying agile and responsive.

Future Directions and Conclusion

Looking ahead, technology-driven financial services in India show great promise. AI and machine learning will enhance personalization and efficiency, while blockchain technology will revolutionize cross-border payments and smart contracts, promoting financial inclusion. However, challenges such as digital literacy barriers in rural areas and cybersecurity threats persist, requiring educational initiatives and balanced regulations.

As India advances towards becoming the world’s third-largest economy, with a projected GDP exceeding $7 trillion by the decade’s end, financial inclusion will play a crucial role. Expanding the BFSI sector and leveraging fintech innovations present significant opportunities, but the existing skill gap in the Indian workforce is a major challenge. This gap needs to be addressed through specialized education programs, industry-academia collaboration, and government support.

At TeamLease, we understand the critical need to address the skill gap in the BFSI sector. Our offerings encompass skilling, reskilling, and learning & development (L&D) programs specifically designed for the BFSI industry. With a strong history in staffing and recruitment, TeamLease is dedicated to closing the skills gap and facilitating a smooth transition to the future.

Unlock the potential of India’s workforce with TeamLease’s industry-focused skilling and staffing solutions. Contact us to discover more about our services!

Factors Affecting Channels of Distribution

Consumer Preferences: Indian consumers are becoming more discerning and demanding, influencing distribution strategies. They seek convenience, quality, and a wide variety of choices, which affects how products are distributed.

Technology: The proliferation of smartphones and access to the internet have transformed distribution channels. Technology enables efficient logistics, real-time tracking, and seamless customer interactions, which influence how products are distributed.

Infrastructure: India’s infrastructure plays a crucial role in shaping distribution channels. While urban areas have robust logistics networks, rural areas may still face challenges in terms of transportation and connectivity.

Regulations: Government policies and regulations regarding retail and e-commerce have a direct impact on distribution channels. Compliance with these rules affects the choice of distribution methods.

In the realm of B2B e-commerce, India allows 100% foreign direct investment (FDI). Furthermore, the marketplace model of e-commerce benefits from the same liberal policy, with 100% FDI permitted under the automatic route. This regulatory framework facilitates foreign investments and encourages growth and innovation within the Indian e-commerce sector.

Globalization: Exposure to global markets and international players has shifted Indian consumers’ expectations, pushing local businesses to adapt global distribution channels.

The Future of E-commerce in India

The future of e-commerce in India holds immense potential due to several factors:

• Rising internet penetration, with over 918.19 million users as of September 2023 and over 1199 million telecom subscribers as of February 2024, is expanding the consumer base for online shopping.
• The growing middle class, with increasing disposable income, is driving demand, while secure and convenient payment solutions like UPI and digital wallets encourage online transactions. With over 821 million users, India was the second-largest internet market in the world with 117.6 billion UPI transactions in 2023.
• The shopping experience has significantly evolved, offering convenience, product reviews, flexible delivery options, augmented reality for product visualization, and AI-powered virtual assistance for instant support. E-commerce platforms are diversifying their product offerings, from electronics and apparel to groceries and home goods, and using data analytics to provide personalized shopping experiences.One of India’s e-commerce giants is entering the quick commerce sector by establishing dark stores in cities like Bengaluru, Delhi (NCR), and Hyderabad, aiming for 10-15 minute deliveries, further enhancing the shopping experience.

Additionally, hybrid commerce is merging online and offline shopping, with strategies like click-and-collect, showrooming, online-to-offline promotions, integrated loyalty programs, and personalized experiences.

Conclusion

The rise of e-commerce and hybrid commerce presents exciting opportunities for businesses 

The E-commerce industry in India has significantly influenced micro, small, and medium enterprises (MSMEs) by offering financing, technology, and training, which positively impacts other industries as well. On a robust growth path, the Indian E-commerce sector is poised to surpass the US and become the world’s second-largest E-commerce market by 2034. Innovations in technology, such as digital payments, hyper-local logistics, analytics-driven

Closing inclusivity gap

In an era marked by profound demographic shifts, technological advancements, and global interconnectedness, diversity and inclusion are more crucial than ever. A recent report by LinkedIn and The Quantum Hub highlights that despite an increase in women in senior leadership roles in Corporate India from 16.6% in 2016 to 18.7% in 2023, a decline in their representation in director (20.1%), vice president (17.4%), and C-suite (15.3%) positions. The TeamLease report titled “Consumer Durables & Electronics Report—A Staffing Perspective” highlights a stark gender disparity of 94% male to 6% female. Inclusivity and diversity should not be seen as mere checkboxes or quotas but as fundamental aspects of our humanity.

True inclusivity encompasses not only gender diversity but also the acceptance and integration of people of all races, including the LGBTIQA+ community. By investing in and cultivating inclusive cultures, we can unlock the full potential of our workforce and pave the way for a brighter, more prosperous future. 

Are you looking to expand diversity and foster inclusivity within your workforce? Contact us today to get started.

References:

• The Diversity, Equity & Inclusion (DE&I) Landscape In India
• Global Gender Gap Report 2023
• Women In Leadership In Corporate India

Slowing Investment in Key Sectors Under PLI Scheme in India

Investment in key sectors identified to boost domestic manufacturing under the Centre’s Production-Linked Incentive (PLI) scheme is decelerating just a year after their launch. A review report by an inter-ministerial panel, which periodically assesses the scheme, indicates that investment growth has slowed significantly in textiles, IT hardware, and specialty steel this financial year.

The government had projected investments worth ₹49,682 crore for FY24, with 61.8% (over ₹30,695 crore) achieved across all 14 sectors during the first nine months of the financial year. Progress has also been sluggish in medical devices, automobiles and auto components, ACC batteries, and white goods.

By FY23, ₹75,917 crore was invested under the PLI scheme in India, surpassing the ₹60,345 crore target. This led to ₹5.96 trillion in production/sales and 367,000 direct jobs, exceeding targets of ₹5.78 trillion and 254,000 jobs. The PLI scheme aims to make India a manufacturing powerhouse, enhance domestic goods’ competitiveness, create jobs, reduce imports, and boost exports.

In the fiscal year 2023–24, the PLI scheme in India disbursed only 44% of the earmarked funds, with ₹6,800 crore reaching recipients out of the projected ₹11,000 crore. This shortfall highlights unclaimed or unused allocations. Contributing factors include amendments for more flexibility, stringent eligibility criteria, administrative hurdles, and delayed clearances. The ongoing restructuring of underperforming PLI schemes and variable sector performance also impacted disbursement rates. Efforts are underway to streamline processes and improve the scheme’s effectiveness for future years.

The Production Linked Incentive (PLI) Scheme has been a catalyst for growth in several key industries in India. As of 2024, the scheme has made notable strides in the following sectors:

• Automotive Sector: The initiative has accelerated the development and production of advanced automotive technologies, particularly in the realm of electric and zero-emission vehicles. It has successfully attracted substantial investments, fostering a robust supply chain both domestically and internationally.
• Electronics Manufacturing: The electronics sector has witnessed a surge in investments and exports, particularly in mobile phone manufacturing. The scheme’s beneficiaries have significantly contributed to the industry’s export figures, showcasing a remarkable increase in production volumes.
• Telecom: The telecom industry has benefited from the scheme through enhanced manufacturing of networking products. This has led to a substantial reduction in imports and a notable increase in domestic sales, alongside the creation of new job opportunities.

Future Outlook

Extension of Scheme Timeline: The PLI Scheme is extended until 2025–26, allowing companies to choose any five-year period within this timeframe to meet production targets. Extensions beyond this period depend on future government policy decisions, based on periodic reviews considering economic conditions and industry feedback.

Expansion to Additional Sectors: The government is considering expanding the PLI Scheme to include sectors like leather, bicycles, vaccine materials, and telecom products. Discussions are also advanced for sectors such as e-bike components, toys, and footwear, aiming to boost domestic manufacturing and job creation.

Increased Focus on MSMEs: Seven new PLI schemes have been approved to benefit MSMEs, with funding increasing from Rs 1,000 crore to Rs 2,500 crore, plus an additional Rs 4,000 crore incentive from the central government. By November 2023, the scheme had attracted over Rs 1.03 lakh crore in investments, significantly involving 176 MSMEs across various sectors. These PLI Scheme benefits are expected to drive growth, enhance competitiveness, and stimulate significant economic contributions from MSMEs.

Overall, the PLI scheme has attracted investments, boosted production and sales, and created jobs. It is considered a game-changer for India’s manufacturing sector and is expected to contribute significantly to the nation’s economic growth and self-reliance in the coming years.

Government Initiatives

The government has launched several initiatives aimed at transitioning to a more formal labour market:

• Make in India: This initiative aims to make the manufacturing sector the new growth hub. By encouraging investment in manufacturing, the government seeks to create millions of formal jobs. This not only enhances productivity but also ensures better working conditions and wages for workers.
• Infrastructure Investments: Ramping up investments in connectivity, digital, logistics, and other infrastructure is vital. Improved infrastructure facilitates business operations, reduces costs, and attracts investments, leading to job creation in formal sectors.
• Nourishing MSMEs: Micro, Small, and Medium Enterprises (MSMEs) are crucial for job creation. Enhancing their productivity, competitiveness, and sustainability can generate more formal jobs. Providing MSMEs with access to capital, technology, and markets is essential for their growth.
• Regulatory Reforms: Reducing the cost of capital and implementing regulatory reforms to promote ease of doing business is necessary. Simplifying business regulations, reducing compliance costs, and providing incentives for formalisation can encourage businesses to transition from the informal to the formal sector.
• Enhancing Employability: Focusing on skill development is crucial for enhancing the employability of youth and informal economy workers. Initiatives like Skill India aim to provide training and certification to millions of workers, making them suitable for formal employment.
• Fostering Entrepreneurship and Innovation: Promoting entrepreneurship, innovation, and startups can create new job opportunities. Encouraging young entrepreneurs and providing them with the necessary support can drive economic growth and formal job creation.

As we continue to navigate these transformative times, our commitment remains steadfast in supporting the formalisation of India’s labour market. Formalisation of the labour market is not just a pathway to economic growth; it is a means to ensure social justice, equity, and improved living standards for millions of workers. By addressing salary disparities, implementing strategic initiatives, and fostering a conducive environment for business and innovation, we can create a prosperous future for all. Formalising the labour market is a critical step towards harnessing India’s demographic dividend and ensuring sustainable development. We look forward to partnering with stakeholders to drive this change and create a prosperous future for all.

Are you looking to employ more people and help in this journey towards formalisation? Partner with us

Technology Integration and R&D Investments: Technology is rapidly transforming healthcare delivery and fostering job growth. Advances in telemedicine, AI diagnostics, health analytics using big data, IoT, and predictive healthcare using machine learning are gaining significant traction. This evolution demands technology specialists and data scientists for the integration of new solutions. Moreover, India’s status as a global pharmaceutical hub has attracted companies to expand research, manufacturing, and export activities, creating openings for highly skilled talent. The fields of healthcare technology and pharmaceutical R&D offer fast-growing opportunities for qualified professionals.

The Focus: Skill Sets in Demand: While the demand for traditional medical roles such as doctors, nurses, and pharmacists is steadily rising, India’s evolving healthcare & Pharma Jobs in India landscape is also generating a need for specialized skills. There will be a growing demand for niche skills in AI, ML, data analytics, and medical coding to derive healthcare insights and contribute to the ongoing transformation in precision medicine and diagnosis. Additionally, job roles in digital marketing, healthcare project management, and digital health solutions will be on the rise. For those already in the healthcare field or planning to enter it, adaptability and continuous learning through upskilling programs will be crucial for success.

Growth Drivers

Government initiatives such as production-linked incentive (PLI) schemes are expected to strengthen the production of high-value products within the country, leading to increased value addition in exports and the creation of employment opportunities. It is estimated that these initiatives will result in the generation of around 20,000 direct and 80,000 indirect jobs, contributing significantly to sectoral growth. Additionally, the establishment of three bulk drug parks in Gujarat, Himachal Pradesh, and Andhra Pradesh will ensure a consistent supply of bulk drug active components, thereby enhancing India’s drug security.

• India’s burgeoning medical tourism sector offers quality healthcare services at competitive costs compared to destinations like the US, Europe, and South Asia.
• With the highest number of US-FDA-compliant plants outside the US, India demonstrates robust infrastructure development in the pharmaceutical sector.
• India possesses a strong foothold in drug manufacturing, excelling in the production of low-cost generic patented drugs and offering end-to-end manufacturing solutions.
• The country benefits from strong domestic demand, further reinforced by the launch of the largest National Health Protection Scheme globally.

The future of healthcare and Pharma jobs in India is incredibly promising, marked by substantial growth and innovation. The sector’s expansion is driven by demographic shifts, strategic government initiatives, and technological advancements. With the projected increase in market size, employment opportunities, and the integration of cutting-edge technologies, the healthcare and pharma industries are set to play a pivotal role in the nation’s economic and social development. Professionals entering or advancing within these fields will find abundant opportunities for impactful and fulfilling careers, contributing to a robust and resilient healthcare system for India.

Understanding from the ground level

To tackle the issue of low women’s participation in the workforce, it is crucial to first comprehend the existing landscape. The factors influencing women’s workforce engagement in India are multifaceted, encompassing cultural norms and educational opportunities.

Key factors affecting female labour force participation

• Cultural and societal norms: Deep-seated cultural and societal influences significantly impact women’s workforce participation.
• Education and skill development: Access to education and skill development opportunities plays a pivotal role in enhancing women’s employability
• Challenges of motherhood: While maternity leave policies exist, they may not adequately address the needs of working mothers. Additionally, the lack of affordable childcare facilities makes it difficult for women to return to work after childbirth.
• Limited access to education and skill development: Limited access to quality education and vocational training opportunities restricts women’s entry into skilled professions, impacting their employability and career prospects.
• Government policies and legal frameworks: Government policies can shape women’s workforce participation.
• The role of flexible work and childcare: Flexible work arrangements can support women’s employment. They allow women to balance work and family responsibilities. Childcare and maternity benefits are also crucial. They can help retain women employees in the workforce.

The recent reports on women dropping out of the labour force – in record numbers, created a tsunami-impact in the world of work. Usually, when women work, it’s a boon to any economy. Most nations experience faster development when women actively participate in their workforces.

Economists are stumped, and concluded by reasoning that:

• As household incomes increase, some women choose to leave the workforce due to financial security.
• Another reason is pursuit of education; more and more women are enrolling in schools and colleges and staying in school longer than previous generations.
• Third reason cited is conservative ideas about a woman’s obligations towards their family.
• Safety concerns while migrating to urban areas in pursuit of a job, as the country is still often considered unreliable and unsafe for females to commute long distances in public transportation, especially during late hours.

India’s labour force is categorised into three main sectors: agriculture and allied industries, manufacturing, and services sector. While agriculture employs the largest portion of the workforce and is one industry that employs more women than men, it contributes the least to the nation’s GDP.

The FMCG industry, ranked as the fourth largest sector in the Indian economy, has seen robust growth driven by consumer demand. However, it continues to grapple with gender disparity, which has been highlighted in our recent report on “Empowering the Essentials: A Deep Dive into India’s FMCG Workforce.”

Balasubramanian A, VP & Business Head, TeamLease, emphasised the gender imbalance in the FMCG industry workforce. He said, “The gender disparity in the FMCG workforce, with male associates comprising over 90%, underscores the need for concerted efforts to promote gender diversity and inclusivity in the industry. Embracing diversity fosters innovation and reflects a commitment to creating a more equitable workplace.”

Initiatives and progress

The journey is challenging, but the potential rewards for India’s economy and society are immense. Let’s strive for a more inclusive and diverse workforce. However, amidst these challenges, there have been commendable efforts and initiatives aimed at promoting women’s participation in the workforce. Government schemes such as the Beti Bachao, Beti Padhao (Save Daughter, Educate Daughter) campaign have sought to empower women economically and socially. Furthermore, legislative measures such as the Maternity Benefit Act and the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act have provided legal frameworks for safeguarding women’s safety and rights in the workplace.

When women succeed, the nation succeeds

The benefits of increased female labour force participation in India extends beyond economic growth. Studies have shown that empowering women economically leads to better health and education outcomes for families, reduces poverty, and fosters more resilient communities. Furthermore, gender diversity in the workforce brings varied perspectives, creativity, and innovation, thereby enhancing productivity and competitiveness.

India stands at a crucial trajectory where unlocking the full potential of its female workforce is not only a moral imperative but also an economic necessity. The journey ahead is challenging, but the transformative impact of empowering women is undeniable. Through collaborative efforts, innovative policies, and a commitment to gender equality, India can harness its demographic dividend and pave the way for a brighter, more equitable future.

Is women hiring part of your diversity strategy? Contact Us

Appraisal season is here, and it’s a crucial juncture for every organisation to evaluate the resilience and adaptability of their team. As author Pearl Zhu rightly said, “Performance keeps the business running, and potential moves the business to the next level of the growth cycle.” Performance management is essential for any business to measure its annual expenditures; it provides businesses with a bird’s-eye view of their processes, people, and ultimately, the performance of the company as a whole. India’s labour market has undergone significant changes in recent years, influencing job creation.

To make the annual performance appraisal effective and relevant to market dynamics, understanding industry benchmarks, skill demands, and economic conditions is essential. In India, where sectors like IT, healthcare, and renewable energy are growing rapidly, appraisals should reflect the importance of skills relevant to these industries.

Beyond monetary compensation

Job evaluation and performance appraisal serves as a double-edged sword. While it fosters feedback, recognition, and growth for employees and aligns the workforce with organisational goals, it can also create stress and impact retention.

While monetary compensation remains a crucial factor in annual performance appraisal, thereby affecting talent attraction and retention, it is no longer the sole determinant. Employees increasingly value non-monetary incentives such as flexible working arrangements, professional development opportunities, and a positive work environment. These factors contribute significantly to overall job satisfaction and play a crucial role in addressing both financial and personal needs.

Key non-monetary incentives

• Flexible working arrangements: Offering flexibility in working hours and remote working options can significantly improve employee satisfaction and work-life balance.
• Professional development opportunities: Investing in training, mentorship programs, and career advancement opportunities demonstrates a commitment to employee growth and development.
• Recognition and awards: Publicly recognising employees’ achievements and milestones fosters a culture of appreciation and motivation.
• Work-life balance initiatives: Providing sabbatical options and wellness programs support employees’ overall well-being.
• Career growth and advancement: Clear pathways for promotion and opportunities to take on new responsibilities encourage long-term commitment and loyalty.
• Company events and activities: Team-building activities and social events help foster a sense of community and belonging.
• Flexible benefits packages: Offering health and wellness benefits and retirement savings plans demonstrates a holistic approach to employee well-being.
• Employee empowerment: Encouraging employees to share ideas and participate in decision-making processes fosters a sense of ownership and empowerment.
• Workplace amenities: Providing on-site amenities and modern workspaces enhances employee comfort and productivity.
• Positive work environment: Cultivating an inclusive, diverse, and supportive workplace culture is essential for employee satisfaction and retention.

Transparency and inclusivity in appraisal practices

To alleviate concerns and meet expectations during appraisal periods, organisations should implement a transparent and inclusive approach.

• Unbiased hiring
• Flexible work
• Inclusive training
• Mentorship and sponsorship programs
• Vision and Leadership
• Competitive compensation

A strategic approach to annual performance management process

As India continues to bridge the gap of skills with job opportunities, annual performance appraisal necessitates a strategic approach. India Inc. faces the intricate task of harnessing the full potential of its demographic talent pool, which remains a formidable challenge. It is crucial for organisations to cultivate a positive appraisal system that not only enhances employee satisfaction but also significantly contributes to the overarching success of the organisation, where talent is recognised, valued, nurtured, and allowed to prosper.

Are you looking to expand your talent pool with skilled individuals to meet your business needs? Contact Us!

Government initiatives and schemes for the Semiconductor Industry in India

The Semicon India Program has fortified India’s strides towards a robust semiconductor industry. The government allocating INR 760 billion to propel companies engaged in silicon semiconductor fabs, display fabs, compound semiconductors, silicon photonics, sensors fabs, semiconductor packaging, and design. This initiative aims to bolster Indias semiconductor ecosystem and telecom growth in India.

The India Semiconductor Mission (ISM), which is tasked with implementing and overseeing the Semicon India Program, is driving this initiative forward. The ISM handles application processes, conducts technical and financial appraisals, recommends applicant selections, and executes other responsibilities delegated by the Ministry of Electronics and Information Technology (MeITY).

Semiconductor Fabs Scheme: Under this scheme, the government pledges up to 50% of the project cost for establishing silicon-based semiconductor wafer fabrication facilities across different technology nodes in India. State governments or local bodies can extend additional financial backing. Applicants must commit to a minimum capital investment of INR 200 billion and demonstrate a minimum revenue of INR 75 billion over the preceding three financial years.

Display Fabs Scheme: Similarly, the government offers up to 50% of the project cost to design display fabrication units for manufacturing TFT LCD/AMOLED-based display panels. State governments or local bodies may provide supplementary financial support. Applicants are required to invest a minimum of INR 100 billion and exhibit a minimum revenue of INR 75 billion over the preceding three financial years.

Design Linked Incentive (DLI) Scheme: The DLI Scheme incentivises semiconductor design activities by offering financial incentives and support for design infrastructure over a five-year period. This scheme is accessible to companies owned and controlled by resident Indians, startups, and micro, small, and medium enterprises engaged in semiconductor design or linked activities.

Hiring activities in the Semiconductor Industry

In 2024, the semiconductor industry in India is witnessing a significant surge in demand for skilled professionals, with an estimated total demand ranging between 40,000 to 50,000 employees across various job roles. This reflects a notable 25-30% increase compared to the previous year, underlining the sector’s rapid growth and evolving needs.

India is set to generate an impressive 800,000 to 1 million jobs in semiconductor industry over the next five years, highlighting sustained growth and promising prospects within the semiconductor ecosystem. This anticipated expansion underscores the industry’s pivotal role in driving employment and innovation, offering substantial avenues for individuals aiming to enter or progress within this dynamic field.

The surge in demand reflects the industry’s increasing reliance on advanced technologies and the ongoing digital transformation across sectors. As the semiconductor market continues to evolve and scale, it presents compelling opportunities for skilled professionals to contribute to and benefit from its ongoing success and development. This growth trajectory underscores the significance of cultivating talent and expertise in this critical sector to meet the burgeoning demands of tomorrow’s technology landscape.

Final thoughts

India’s semiconductor industry is on a trajectory of significant growth, driven by substantial government investments and strategic initiatives. With a forecasted surge to US$100.2 billion by 2032 and ambitious job creation targets, Indias semiconductor ecosystem promises innovation, employment, and economic expansion. Initiatives like the Semicon India Program and the Semiconductor Fabs Scheme are crucial for nurturing indigenous capabilities. Skilled professionals are needed to capitalise on emerging opportunities, propelling India towards technological prowess and sustained economic prosperity.

Hiring for Manufacturing Industry in India

India’s manufacturing sector is on the cusp of a transformative leap, aiming to bolster its GDP contribution to 25% by 2025. The hiring for the manufacturing sector is on the rise with a plethora of job opportunities, particularly in high-growth areas like automotive, electronics, and textiles, fueled by domestic demand and export prospects. Technological advancements, including automation and AI, are expected to reshape the sector, necessitating a skilled workforce adept in modern manufacturing practices. According to TeamLease’s Employment Outlook Report H2FY24, 74% of the employers have projected incremental workforce expansion and 69% incremental new hiring for manufacturing, with Chennai, Bangalore, Hyderabad, and Coimbatore emerging as the top cities for recruitment in this sector.

Building a combination of technical and soft abilities is crucial for individuals eyeing a successful career in the manufacturing sector. While the knowledge of automation and robotics is critical for enhancing efficiency and production, the capacity to analyse and understand data from sensors and machines helps in process optimisation and decision-making. Similarly, understanding CAD and CAM software and technical troubleshooting skills are important for ensuring smooth production.

Addressing Skill Shortages

The rapid adoption of Industry 4.0 technologies such as AI, ML, and automation has resulted in a skills gap within the manufacturing industry in India. A survey reveals that 74% of manufacturing executives struggle to find qualified candidates for roles in these specialised areas.

To address this demand-supply gap, collaborative efforts between educational institutions and industry stakeholders are underway. These partnerships aim to develop specialised training programs and certification initiatives tailored to equip workers with the necessary skills, thereby bridging the divide between talent availability and industry requirements in the evolving landscape of Industry 4.0.

Initiatives like the National Apprenticeship Promotion Scheme (NAPS), Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), and Pradhan Mantri Yuva Udyamita Vikas Abhiyan (PM-YUVA) are spearheaded by the Government of India. These programs are designed to foster apprenticeship training and skill enhancement among the nation’s youth, aiming to alleviate skill shortages and cater to the demand for industry-aligned competencies.

Final thoughts

India’s manufacturing industry is experiencing robust growth driven by government initiatives like Make in India and the Production Linked Incentive (PLI) Scheme, alongside infrastructure development projects. This growth has led to increased hiring, especially in sectors like automotive, electronics, and textiles, fueled by domestic demand and export opportunities. However, addressing skill shortages remains challenging, with initiatives like NAPS and PMKVY aiming to bridge the gap. With collaborative efforts, India is poised to strengthen its position in global supply chains and contribute significantly to economic growth.

Technological Advancements and Digital Transformation:

Technology is playing a pivotal role in shaping the future of the FMCG brands in India. From digital marketing and e-commerce to blockchain and AI-based analytics, companies are leveraging cutting-edge technologies to drive efficiencies and meet consumer demands. The rise of direct-to-consumer (D2C) models and the growth of online channels are reshaping traditional retail paradigms, offering new opportunities for market expansion and consumer engagement. It is forecasted that by 2040, a whopping 95% of all retail purchases will be made online.

Challenges and Opportunities:

Despite its promising outlook, the FMCG sector in India faces challenges such as data management, brand management, price wars, and catering to diverse demographics. In 2030, India will have 370 million Gen Z consumers with different purchasing priorities. FMCG businesses will need to keep abreast with the needs of the modern Indian consumer who is highly aware, exhibits a preference for health and nutrition, and has higher spending power. 

The Role of the People Supply Chain:

As per the TeamLease Report on Empowering the Essentials : A Deep Dive into India’s FMCG Workforce:

• Gender share in FMCG: The proportion of male associates is over 90% of the outsourced workforce.
• The distribution of outsourced associates is highest in Uttar Pradesh (14%) followed by Maharashtra (13%) and Andhra Pradesh (9%).
• Male associates have an educational attainment of up to the 12th grade & below at a rate of 51%, while female associates exhibit a higher rate of 60%.
• The YoY growth rate of overall associates is 1.2%.

In the dynamic FMCG industry, success hinges on the efficiency and effectiveness of the people supply chain. Hiring the right talent, reducing attrition, and enhancing productivity are critical factors for business success. Leveraging technology-enabled tools, streamlining onboarding processes, and investing in employee development are key strategies for optimizing the people supply chain. Additionally, fostering a culture of diversity and inclusion and providing opportunities for career progression are essential for employee engagement and retention.

In 2024, the Indian FMCG industry is poised for transformation as stakeholders respond to heightened customer awareness of pricing, packaging, quality, and sustainability. Adopting AI-powered solutions like ML and NLP (Natural Language Processing), along with manufacturing automation, will be crucial for delivering excellence. While the adoption of technology may unlock the path to a better understanding of consumer needs and wants, insights can only be derived and delivered by a dedicated and skilled workforce that is responsive to the needs of the customer.

By leveraging government support, embracing digital transformation, and optimizing people in the FMCG supply chain, FMCG companies can position themselves for sustained growth and success. With a strategic approach and a focus on innovation and agility, the Indian FMCG industry is poised to capitalize on emerging opportunities and overcome existing challenges, driving growth and prosperity in the years to come.

Click here to download your copy of the TeamLease Report on Empowering the Essentials : A Deep Dive into India’s FMCG Workforce

Benefits of a multigenerational workforce

Each workforce from a different generation has a unique perspective shaped by their experiences, upbringing, and cultural influences; they bring varied work habits, expectations, and communication styles to the table. Thus, there are a lot of possibilities of beneficial perks from having a multigenerational workforce.

• Diverse perspectives: A mix of generations encourages diverse thinking and problem-solving approaches, leading to more creative and innovative solutions.
• Knowledge sharing: Older generations often possess valuable institutional knowledge and expertise gained through years of experience.
• Technological fluency and innovation: Younger generations are more adept at leveraging technology, digital tools, and platforms. They can help older colleagues navigate new technologies and drive innovation within the organisation.
• Enhanced communication skills: Encouraging interaction among employees of different age groups can improve communication skills across the organisation, leading to better collaboration and teamwork.
• Employee engagement and retention: A diverse workforce that values inclusivity and respects different perspectives tends to foster a sense of belonging among employees. This can lead to higher engagement and job satisfaction, ultimately improving employee retention rates.
• Adaptability and resilience: Different generations bring unique strengths and coping mechanisms, enabling the organisation to navigate challenges more effectively.
• Succession planning and leadership development: Organisations can develop a pipeline of future leaders from diverse ages. This helps ensure continuity and sustainability within the organisation, even as older employees retire or transition to new roles.

Challenges of a multigenerational workforce

Managing a multigenerational manpower poses several challenges due to the diverse perspectives, values, work styles, and communication preferences among employees of different age groups. Below are several of the main challenges:

• Communication gap: Each generation’s preference for different communication methods creates a gap.
• Work preferences: Balancing different generations’ attitudes toward work preferences can be challenging for managers.
• Technology adaptation: Younger generations are tech-savvy, while older workers may struggle to adapt to new technologies.
• Conflict resolution: Misunderstandings, stereotypes, and biases based on age can arise and hinder teamwork and collaboration.
• Leadership styles: Different generations may have different expectations of leadership and management.
• Knowledge transfer and succession planning: As older workers retire, effective knowledge transfer to younger generations is fundamental for maintaining organisational functions.
• Retention: Understanding and catering to employees’ diverse needs and preferences across different age groups is essential for retaining top talent.

Bridging the generational divide

To address the evolving needs of a multigenerational manpower and leverage the unique strengths each generation brings, organisations can implement several strategies:

• Skill-based hiring: Prioritise hiring based on skills, competencies, and potential contributions rather than just educational credentials or experience. Consider consultants or contract staffing for temporary specialised skills and expertise.
• Effective communication: Implement communication strategies that cater to diverse generational preferences. Effective communication reduces attrition by fostering employees’ sense of belonging and engagement.
• Adaptable training programs: Provide diverse training opportunities tailored to various learning styles and skill levels. Offer both traditional classroom and online modules, along with on-the-job experiences.
• Cross-generational mentoring: Encourage cross-generational mentorship for knowledge exchange and skill development.
• Embrace diversity and inclusion: Foster an inclusive environment where all generations feel valued and empowered to share their unique perspectives.
• Agile talent management: Adopt agile talent management to swiftly adapt to changing workforce needs. This may include hiring consultants or using contract staffing to fill temporary skill gaps and workload fluctuations.

Flexibility in work arrangements: Recognising the importance of work-life balance, offer flexible arrangements to accommodate diverse generational needs. This promotes satisfaction, reduces attrition, and enhances employee well-being.

Temporary teams comprising contract workers are vital for today’s agile workforce model. Focused on outcomes, they bring together diverse skills and backgrounds, enabling success in person or remotely. Professional staffing firms have been building teams from various yet curated talent pools for a while now with great success.

Conclusion

Working with a multigenerational manpower offers both opportunities and challenges. Organisations must prioritise skill-based hiring, effective communication, and adaptable training to meet market needs. Embracing diversity and inclusivity, fostering cross-generational collaboration, and emphasising continuous learning enable sustainable growth in the age of AI and digital transformation. Addressing communication gaps and work preferences is crucial, and solutions like cross-generational mentoring and hiring consultants help bridge generational divides for resilient, future-ready workplaces.

Let’s collaborate to bridge generational divides, foster innovation, and drive sustainable growth. Connect with us to explore tailored strategies and experienced professionals who can elevate your workforce to new heights. CONTACT US