Navigating Growth in the Consumer Durables Industry in India
India is currently the world’s fastest-growing major economy and the largest by population, comprising over 18% of the global populace and accounting for 3% of total consumption. This massive market is poised to become the third-largest consumer market by 2027, driven by rising consumer spending power, changing lifestyles, and evolving tastes for consumer durables and electronics. This rapid growth in the consumer durables industry in India presents unparalleled opportunities for manufacturers, retailers, and other stakeholders to capitalize on the burgeoning demands from Indian consumers.
The consumer durables and electronics industry in India is segmented into small and large appliances, as well as consumer electronics. The market for consumer durables in 2024 is valued at $34.7 billion and is projected to reach $45.6 billion by 2028, growing at a CAGR of 7.1%. Meanwhile, the consumer electronics market, valued at $79.7 billion in 2024, is expected to grow to $108.8 billion by 2028, with a CAGR of 8.1%.
This upward trend in penetration and premiumization is driven by rising aspirations, increasing disposable incomes, and more promotional offers. Key categories such as Televisions, Air Conditioners, and Refrigerators show significant growth potential, with air conditioners being notably underpenetrated in India at only 8%, compared to the global average of 42%.
Government Initiatives and Support:
During the last quarter of FY24, the Indian government distributed approximately Rs. 79 crore (US$ 9.51 million) in fiscal incentives under the Production Linked Incentive (PLI) scheme for white goods. This PLI scheme for White Goods (air conditioners and LED lights), running from FY 2021-22 to FY 2028-29, has approved 64 applicantThe Indian government has distributed Rs. 79 crore (US$ 9.51 million) in incentives under the PLI scheme for white goods in Q4 FY24. The scheme, running from FY 2021-22 to FY 2028-29, has approved 64 applicants with a total committed investment of US$ 814 million (Rs. 6,766 crore). Efforts are underway to create a common data repository on service centers and repair policies for consumer durables to safeguard customer rights.
Since November 2021, 42 companies have been selected under the PLI scheme for white goods, with an investment commitment of Rs. 4,614 crore (US$ 580.6 million), expected to generate 44,000 jobs. An additional 19 companies applied in April 2022, committing Rs. 1,548 crore (US$ 194.79 million). The PLI scheme has facilitated the establishment of 61 component manufacturing units across 14 states, boosting employment.
The government continues to push for self-reliance through the “Make in India” initiative and has extended the PLI scheme for large-scale electronics manufacturing until FY26. The National Policy on Electronics 2019 targets the production of one billion mobile handsets worth US$ 190 billion by 2025, with 600 million units (US$ 100 billion) slated for export.
The government has permitted 100% FDI under the automatic route in electronics manufacturing and has increased the FDI limit in single-brand retail to 100%, with plans to raise it to 51% in multi-brand retail.
Job Market Dynamics
India boasts a workforce of 590 million, with formal employment accounting for 13.6% and informal employment making up 86.4%. Within this landscape, the organized sector employs 18.9%, while the unorganized sector engages 81.1% of the workforce. The formal temporary workforce, numbering 5.4 million, has grown at a CAGR of 10.4% over the past five years, becoming a crucial component of the labor market.
The rise in temporary staffing is driven by the need for operational flexibility and compliance assurance. Businesses increasingly rely on temporary workers to meet fluctuating demands, tapping into a diverse pool of skilled and unskilled individuals promptly.
The Role of the People Supply Chain in the Consumer Durables Industry:
As per the TeamLease Report on Consumer Durables & Electronics – A Staffing Perspective,
- Gender Distribution: The workforce is predominantly male (94%), highlighting a need for greater gender diversity.
- Average Age: The average age is 31, indicating a young workforce.
- Average Tenure: The average tenure is 2.8 years, with metro cities showing higher tenure (3.4 years) compared to Tier 2 cities (2.3 years).
- Education: Nearly half of the workforce has education below the 12th standard, necessitating targeted training programs to develop essential skill sets.
Attrition and its Costs
Attrition remains a significant challenge, especially in metro areas, with an overall rate of 57%. Regrettable attrition, involving high-performing employees, accounts for 22%, while non-regrettable attrition is 31%. The cost of attrition for an organization with 1,000 employees is approximately ₹3.64 crores annually, with significant costs associated with recruitment, training, and lost productivity.
The opportunity cost due to attrition is substantial, with an estimated ₹118.6 crores in lost revenue for an organization of this size, primarily due to the time required to fill vacant positions and the lower productivity of new hires.
Road Ahead
Consumer durable companies see rural India as the next major growth frontier, driven by increased market penetration and the government’s rural electrification initiatives. Over the past few years, improved power supply in tier 3 and 4 towns and villages has paved the way for the adoption of electrical products. Alongside this, these companies are increasingly focusing on training and employing a local workforce as brand ambassadors to enhance product reach and service quality in these emerging markets. By empowering local communities with skills and employment opportunities, companies are not only expanding their market but also strengthening brand loyalty and customer trust in rural areas.
Click here to download your copy of the TeamLease Report on Consumer Durables & Electronics – A Staffing Perspective.
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Read MoreFestive Surge Drives Demand for Temporary Staffing
Festive Surge Drives Demand for Temporary Staffing
As the festive season approaches, businesses across various sectors are gearing up to handle the surge in activity that comes with it. Whether your business operates in retail, hospitality, e-commerce, travel, tourism, or other industries, this time of year often brings a significant increase in demand for workforce, particularly temp staffing. With increased consumer spending and business activities, managing contract workers becomes crucial for maintaining smooth operations and meeting customer expectations. This article outlines how businesses can optimise their festive hiring strategy to manage seasonal peaks effectively.
Rising demand for temporary staffing during festive seasons
The festive season is marked by a sharp rise in consumer demand, especially in sectors like e-commerce, retail, and BFSI (Banking, Financial Services, and Insurance). E-commerce platforms and other online services prepare for this period by bolstering their IT infrastructure to manage increased traffic and by expanding their workforce across various roles—such as delivery, warehousing, customer service, packaging, labelling, quality control, and order fulfilment. This increase in demand for temporary workers is projected to rise by 15-20 per cent year-on-year. During the festive period, it is estimated that around 600,000 to 700,000 new temporary jobs will be created across industries, driven by factors such as increased consumer spending, a revival in the rural economy due to favourable harvest prospects, and strong stock market performance.
“Early indicators say that hiring will go up, but it is sector-specific. For instance, in the BFSI segment , where credit cards, loans etc shoot up during this period, recruitment is expected to be muted. We estimate a 10% rise in the July-September quarter from the previous muted six months – January-July,” said Kartik Narayan, CEO – staffing, TeamLease Services. These trends underline how volume hiring strategies are vital in meeting the heightened workforce requirements during the festive surge.
Balasubramanian A, Senior VP & Business Head said, “This festive season, e-commerce will drive sales and fuel job creation on a massive scale. With 10 lakh gig workers and 2.5 lakh contractual staff to be employed, the e-commerce sector’s role in employment generation will be significantly impacted. This hiring boom not only underlines the sector’s critical role in creating jobs but also its substantial contribution to India’s vision of becoming a USD 5 trillion economy by 2025.”
Optimising Temp staffing strategies for peak seasons
Optimising temporary hiring strategies for peak seasons is crucial to ensuring smooth operations during high-demand periods. A well-structured approach to workforce planning allows companies to handle seasonal surges effectively without overburdening their permanent teams. During festive periods, businesses often experience a significant uptick in customer traffic and sales. Contract workers help manage this increase, providing flexibility and reducing the strain on existing staff. Moreover, well-trained temporary staff can enhance the customer experience by delivering quality service, which is vital for maintaining satisfaction during busy times. This flexibility in workforce management helps reduce staffing costs and keeps operations running with minimal disruptions, even at peak periods.
Effective management of temp staffing starts with forecasting festive hiring needs well in advance. Analysing historical data, such as past sales trends and customer traffic, helps predict potential demand spikes. It’s also essential to consider planned promotions or events that might drive increased activity, enabling businesses to determine the number of temporary staff needed to cover higher workloads and maintain service standards. Early planning is key—it allows for recruiting and training temporary staff ahead of the busy season, ensuring they are prepared to perform effectively from the start.
Developing a strong recruitment strategy is essential for finding the right temporary staff:
- One effective approach is to partner with staffing agencies that specialise in temporary placements. These agencies have access to a pool of pre-screened candidates and can quickly match your business with individuals who have the necessary skills and experience, streamlining the hiring process.
- Another strategy is to utilise online job boards and social media platforms. Posting job openings on these platforms can attract a wide range of potential candidates. It is important to craft job descriptions that emphasise the festive nature of the roles and highlight the benefits of joining your company during this period.
- Encouraging internal referrals is also a valuable approach. Current employees can refer candidates who are more likely to be a good fit, as they are often already familiar with the company culture. Employee referrals frequently result in high-quality hires, making them an effective way to build a strong temporary workforce.
An optimised temp staffing strategy is essential for managing seasonal peaks, ensuring smooth operations, and delivering exceptional service during busy periods. By forecasting hiring needs, developing a robust recruitment strategy, and implementing effective onboarding and training programs, businesses can handle the festive surge with ease. After the season, reviewing the strategy helps to fine-tune the approach for future success.
Are you looking for temporary staffing to meet your festive season surge? Contact us
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Read MoreTransformative Trends and Employment in Agriculture in India
Over the past five years, India’s agriculture sector has grown at an average rate of 4.18% per year, significantly contributing to the nation’s economic growth. However, with approximately 55% of the population relying on agriculture as their primary source of income, and a population of 1.4 billion, sustainability in agriculture is critical. It is essential to secure long-term productivity of land holdings, ensure sufficient farm-based incomes, and guarantee food security for the nation.
According to the National Sample Survey Office’s (NSSO) Periodic Labour Force Survey (PLFS) for 2022-2023, 45.76% of India’s workforce was employed in agriculture and related sectors. While this is a slight decrease from the previous year, it remains higher than the 42.5% recorded in 2018-2019. Agriculture employment continues to be a significant source of livelihood in India.
Union Budget 2024: A Strategic Boost for Agriculture
The Union Budget 2024 has allocated ₹1.52 lakh crore to the agriculture and allied sectors, focusing on increasing agriculture employment and skilling opportunities. Key initiatives include:
- Introduction of New Crop Varieties: The government will release 109 new varieties of field and horticulture crops that are more climate-resilient and high-yielding, ensuring better adaptability and productivity in changing environmental conditions.
- Promotion of Natural Farming: The government plans to transition one crore farmers to natural farming over the next two years, supported by certification and branding. Additionally, 10,000 bio-input resource centers will be established to facilitate this transition.
- Digital Public Infrastructure (DPI): In collaboration with states, the government will implement DPI in agriculture over the next three years. This includes conducting a digital crop survey in 400 districts in 2024 and integrating details of 6 crore farmers and their lands into centralized registries.
- Empowering Farmer-Producer Organizations (FPOs): The budget emphasizes promoting startups, cooperatives, and FPOs to improve vegetable supply chains, including aspects such as marketing, storage, and collection.
- Strengthening Agricultural Finance: The government has set an ambitious agricultural credit target of ₹20 lakh crore for 2024-25, aimed at providing farmers with easier access to credit for investing in advanced technologies and sustainable practices.
- Continued Support through the PM-KISAN Scheme: The PM-KISAN Samman Nidhi scheme remains a cornerstone of support for small and marginal farmers, with an allocation of about 1.3% of the total Union Budget.
- Enhancement of Minimum Support Price (MSP): For the 2024-25 marketing season, the MSP for all mandated Kharif crops has been increased, with significant hikes for oilseeds and pulses. This move is intended to encourage the cultivation of these crops and reduce the country’s dependency on imports.
- NABARD’s Role in Rural Development: The National Bank for Agriculture and Rural Development (NABARD) continues to play a pivotal role in providing financial support for agriculture and rural development. NABARD is launching a fund to support agri-based startups and rural enterprises, and it also finances critical rural infrastructure projects like irrigation, roads, and storage facilities this will help in increasing employment in rural areas.
Employment in Agriculture in India
The budget’s focus on digital transformation is expected to create new agriculture jobs in India in digital advisory services, supply chain management, and precision farming technologies. Easier access to credit will enable farmers to invest in modern technologies, potentially creating around 1 million agriculture jobs in India. Furthermore, NABARD’s support for agri-based startups and rural enterprises will drive employment in rural areas.
Moreover, the agriculture sector is witnessing a surge in diverse employment opportunities, particularly in areas such as agri-warehousing, new agricultural technologies, and agri-financing. In agri-warehousing, there is a growing demand for roles like warehouse managers, quality control inspectors, inventory managers, and logistics coordinators who ensure the safe storage and efficient movement of agricultural produce. With the advent of new agricultural technologies, job roles such as precision farming specialists, drone operators, IoT device technicians, data analysts, and agritech product developers are increasingly required to drive innovation and improve farm productivity. In the agri-financing domain, positions such as credit analysts, rural loan officers, financial advisors, and customer relationship managers are essential to facilitate easier access to credit and financial services for farmers and rural enterprises, contributing significantly to rural employment.
How Staffing Companies Can Bridge the Employment Gap
Staffing companies can play a pivotal role in bridging the employment gap by matching these emerging job roles with the right talent, supporting the sector’s growth and modernization
Strategies for Talent Acquisition and Retention:
Skilling Programs: Implement skilling and training initiatives to equip the workforce with modern agricultural techniques and digital skills
Incentives and Benefits: Offer competitive salaries, benefits, and career growth opportunities to retain talent in rural employment.
Work Environment: Foster a supportive and inclusive work environment to enhance employee satisfaction and retention in agriculture employment.
Conclusion
The Union Budget 2024 has laid a strong foundation for the growth and development of India’s agriculture and allied sectors. Through financial support, infrastructure enhancement, and technological integration, the government aims to create a sustainable and prosperous agricultural landscape, promoting employment in agriculture in India.
As the agriculture sector continues to evolve, the role of staffing companies like TeamLease becomes increasingly vital. We are committed to bridging the employment gap by providing skilled talent, workforce management solutions, and innovative recruitment strategies. Contact us to ensure your business is equipped with the best resources to thrive in this dynamic environment.
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Read MoreNBFC in India: A Sector Driving Financial Access and Growth
Introduction
The Non-Banking Financial Company (NBFC) in India have emerged as a cornerstone sector of the country’s financial ecosystem over the past few decades. The sector plays a pivotal role in extending credit and financial services to sectors and regions that traditional banks often overlook. As of 2023, the asset size of NBFCs in India reached USD 326 billion, with a compound annual growth rate (CAGR) of around 15% over the past few years. This impressive growth reflects the increasing demand for NBFC services and the sector’s ability to cater to niche markets. This blog explores the rise of NBFCs in India, their importance to the country, their impact on untapped regions, and the current employment and hiring trends within the sector.
Importance of NBFC in India
NBFCs in India have grown significantly over the past few decades, driven by the need to cater to underserved markets. While traditional banks focus on a broad range of financial services, the NBFC sector has carved out a niche by innovating and offering specialized financial products like hire purchase, leasing, asset management, and microfinance. NBFCs are instrumental in promoting financial inclusion in India by reaching out to unbanked and underbanked populations. By providing services to businesses and individuals that lack access to traditional banking, the sector plays a key role in bridging the financial gap.
Supporting MSMEs
Micro, Small, and Medium Enterprises (MSMEs) form the backbone of the Indian economy, and NBFCs in India play a crucial role in providing credit to these enterprises. MSMEs often struggle to secure loans from traditional banks due to stringent lending criteria. By offering flexible and accessible financing options, the NBFC sector helps MSMEs grow and contribute to economic development.
Technological Innovation
NBFCs leverage digital platforms and technology to make loan applications faster and easier. For example, Artificial Intelligence (AI) helps quickly check credit scores and approve loans within minutes. Machine Learning (ML) analyzes financial behavior to offer personalized loans, like lower interest rates for good credit scores. Many NBFCs also have mobile apps for applying for loans, checking balances, and making payments. These technologies help NBFCs serve customers better, making financial services more personalized and accessible.
Impact on Untapped Regions
NBFCs in India have successfully penetrated rural and semi-urban areas, where traditional banks have limited reach. By offering financial services, including savings and investment opportunities, in these underserved regions, they bridge the urban-rural divide and provide vital credit to farmers, small businesses, and individuals, driving economic growth. This expansion has also led to a surge in NBFC jobs, creating employment in sales, operations, and customer service, while also increasing temp staffing for flexible employment options.
NBFCs offer customized financial products like microfinance, vehicle loans, and agricultural loans to meet local needs. These products support underserved communities and foster inclusive growth. Additionally, the sector boosts local economies by creating jobs and promoting entrepreneurship through skill development and financial support.
Employment and Hiring Trends
The NBFC sector in India is expected to witness significant employment growth, with a projected net increase of 5.41% in the first half of FY25. This growth is driven by expansion plans and the need to cater to a growing customer base. According to the Employment Outlook Report H1FY25, 65% of NBFCs in India plan to increase their workforce, highlighting the sector’s dynamic growth and its pivotal role in extending credit to MSMEs.
Challenges and Opportunities
While NBFCs in India have made significant strides, they also face challenges such as regulatory changes and funding constraints. However, the opportunities for growth are immense. Strategic partnerships with traditional banks, leveraging technology, and focusing on underserved markets can help the sector continue its upward trajectory. This growth not only enhances the sector’s role in India’s financial landscape but also creates numerous opportunities for NBFC careers, offering diverse roles and fostering professional development.
The BFSI sector is currently grappling with a significant demand-supply mismatch. There is a pressing need for skilled professionals who can adapt to the industry’s evolving requirements, yet the existing workforce often lacks the specialized skills necessary for emerging roles. To address this challenge and bridge the talent gap, it’s essential to focus on training and preparing job seekers to become industry-ready. By investing in targeted upskilling and reskilling programs, particularly for fresh graduates eager to enter the sector, companies can expand their talent pool. This proactive approach not only helps bridge the current demand-supply gap but also ensures a steady influx of adaptable, skilled professionals poised to drive growth and innovation within the BFSI sector.
Conclusion
NBFCs are indispensable to the country’s financial ecosystem, particularly in untapped regions. The sector’s ability to provide flexible, accessible, and innovative financial solutions makes it crucial for promoting financial inclusion and driving economic growth. Moreover, NBFCs are significant contributors to employment generation, creating job opportunities across various levels, from urban centers to the most remote areas. As the sector continues to evolve and expand, it will play an even more vital role not only in shaping the future of the country’s financial landscape but also in contributing to the overall socioeconomic development by fostering job creation and supporting livelihoods.
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Read MoreFinancial Inclusion in India: Tech’s Impact on BFSI and Jobs
Financial inclusion as defined by RBI is “the process of ensuring access to financial services, timely and adequate credit for vulnerable groups such as weaker sections and low-income groups at an affordable cost”. The financial landscape in India is undergoing a profound shift driven by rapid technological transformations in the industry. Financial inclusion, aiming to provide affordable services to all, especially the underserved, has gained momentum with new age technologies.
This blog explores how technology is impacting the sector and promoting financial inclusion in India, highlighting key advancements, job creation effects, and future challenges.
Technological Advancements and Growth Figures
The Indian BFSI sector, which includes commercial banks, insurance companies, NBFCs, cooperatives, mutual funds, fintechs, and others, is predominantly dominated by commercial banks, holding over 64% of total assets. In recent years, the industry has experienced remarkable technological progress. Developments like mobile banking, digital wallets, blockchain, and AI have transformed financial services, improving customer access and driving growth in digital insurance, investments, and credit services.
The global fintech sector has also seen significant growth. The World Bank projects the global digital payments market to reach $16 trillion by 2027, with a CAGR of around 10%. India is among the fastest-growing fintech markets in the world, and it accounts for 46% of all digital payments. According to MoS Finance India, total digital payment transactions volume increased from $0.276 billion (INR 2,071 crore) in 2018 to $1.8 billion (INR 13,462 crore) in 2023 at a CAGR of 45%. This global surge in digitization underscores the critical role of technology in expanding access to financial services.
Integration of Offline Banking with Technology
As of 2023, the Indian banking sector reported deposits of approximately $2.2 trillion and loans of about $1.67 trillion. Despite rapid digitization, offline banking remains crucial for comprehensive financial inclusion. Many in rural India still rely on traditional banking due to limited digital infrastructure and literacy.
Hybrid banking models use digital innovations to enhance offline services, ensuring customers who need face-to-face interactions can still access banking. For example, many banks now offer mobile banking vans and digital kiosks in rural areas, allowing digital transactions with staff assistance. This approach leverages banking technology in India to address the needs of diverse customer segments while fostering trust and familiarity with digital tools, gradually encouraging the adoption of fully digital banking services.
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 $7 trillion by the decade’s end, financial inclusion will play a crucial role. Expanding the BFSI sector and leveraging fintech innovations present significant opportunities, but the existing skill gap in the Indian workforce is a major challenge. This gap needs to be addressed through specialized education programs, industry-academia collaboration, and government support.
At TeamLease, we understand the critical need to address the skill gap in the BFSI sector. Our offerings encompass skilling, reskilling, and learning & development (L&D) programs specifically designed for the BFSI industry. With a strong history in staffing and recruitment, TeamLease is dedicated to closing the skills gap and facilitating a smooth transition to the future.
Unlock the potential of India’s workforce with TeamLease’s industry-focused skilling and staffing solutions. Contact us to discover more about our services!
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Read MoreE-commerce in India: Distribution Channels and the Way Forward
India’s e-commerce landscape has undergone a significant transformation in recent years, shaped by a growing economy, technological advancements, and shifting consumer behaviors. In this blog, we’ll delve into the different channels of distribution, the factors affecting channels of distribution, and the future of e-commerce in India.
The Indian e-commerce industry is projected to reach US$ 300 billion by 2030, experiencing significant growth.Third-party logistics providers are anticipated to manage approximately 17 billion shipments within the next seven years.
Different Channels of Distribution
Traditional Retail: This includes small shops, mom-and-pop stores, and local markets. These channels continue to play a significant role, especially in rural and semi-urban areas.
Modern Trade: Supermarkets, hypermarkets, and large retail chains offer a wide range of products under one roof. These channels are becoming more prominent in urban centers.
E-commerce: Online shopping has grown exponentially in India, providing consumers with access to a vast selection of products and convenient home delivery.
Direct-to-Consumer (D2C): Brands are increasingly bypassing traditional retail channels to sell directly to consumers through their websites or social media platforms. By 2027, India’s retail market will be worth between $150 and $170 billion, and a sizable portion of that expansion is attributable to direct-to-consumer (D2C) companies.
Hybrid Commerce: This approach blends online and offline experiences. For instance, customers might browse products online and then pick them up at a physical store, or vice versa.
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
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Read MoreThe Importance of Diversity and Inclusion: Beyond the C-Suite Directive
“Inclusion is not a matter of political correctness. It is the key to growth.” – Jesse Jackson, Civil Rights Activist. The world of work is constantly evolving. The importance of diversity and inclusion has become essential principles for organisations striving to achieve equitable workplaces. India has ranked 127 out of 146 countries in terms of gender parity – an improvement of eight places from last year – according to the World Economic Forum’s annual Gender Gap Report, 2023.
Leaders agree that an inclusive workplace is essential for employee engagement. However, the interpretation and implementation of inclusivity vary widely among companies. Some companies focus on hiring and retaining a diverse workforce, while others prioritise hosting unconscious bias training or establishing employee resource groups. Some organisations go as far as creating dedicated leadership roles specifically for diversity and inclusion (D&I). Diversity and inclusion have become crucial tenets for organisations striving to achieve equitable workplaces. But the truth is, achieving these two is easier said than done. It requires sustained focus and action at every level of the organisation, not merely a directive from the C-suite.
The importance of diversity and inclusion
Diversity and inclusion in the workplace offer multifaceted benefits:
- Enhancing creativity and innovation: A diverse team brings a wide range of perspectives and experiences, fostering an environment where creative solutions and innovative ideas can flourish.
- Improving employee satisfaction and retention: An inclusive culture makes employees feel respected and valued, leading to higher productivity and loyalty. Conversely, a lack of inclusion can result in high turnover rates and a disengaged workforce.
- Attracting top talent: Job seekers are increasingly prioritising company values and culture. Businesses committed to diversity and inclusion are more likely to attract high-calibre candidates and are perceived as desirable employers.
- Creating awareness and understanding: This training raises awareness and promotes understanding among employees, exploring topics like unconscious bias and cultural competency.
- Fostering inclusive leadership: comprehensive training develops inclusive leadership skills, enabling leaders to champion diversity and inclusion initiatives and create environments where all voices are heard and valued.
- Strengthening team dynamics: Promotes effective communication and collaboration across diverse groups, improving productivity and fostering a sense of belonging and cohesion within the team.
- Mitigating legal and reputational risks: Ensures compliance with anti-discrimination laws and enhances the organisation’s appeal to stakeholders for employee engagement.
The role of diversity training
Diversity training plays a crucial role in establishing an inclusive workplace culture by proactively educating employees across all organisational levels on the significance of diversity and inclusion. This initiative aims to raise awareness and promote understanding among employees, covering topics such as unconscious bias, privilege, microaggressions, and cultural competency. It helps participants grasp their colleagues’ perspectives, fostering more inclusive relationships and cultivating a culture of empathy and respect. Leaders who undergo this training can enhance their ability to champion diversity initiatives, recognize and address biases, foster diverse talent, and create inclusive environments where all voices are valued. Participants also improve team dynamics by learning strategies for effective communication, conflict resolution, and leveraging each member’s strengths, fostering productivity, belonging, and cohesion. Moreover, beyond promoting inclusion, efforts to ensure compliance with anti-discrimination laws help companies avoid costly litigation and protect their brand. A commitment to diversity also enhances appeal to customers, investors, and prospective employees.
While diversity training holds immense potential for driving positive change, its effectiveness hinges on several key factors. Customising training programs to the specific needs and challenges of the organisation ensures relevance and engagement among participants. Viewing diversity training as an ongoing process rather than a one-time event, with follow-up sessions, refresher courses, and continuous learning opportunities, reinforces key concepts and sustains momentum over time. Embedding diversity and inclusion principles into broader talent management processes, such as recruitment, performance evaluation, and leadership development, reinforces their importance and ensures alignment with organisational objectives. Additionally, establishing clear metrics and evaluation mechanisms allows organisations to assess the impact of initiatives and make data-driven decisions for continuous improvement.
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:
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Read MoreThe Production Linked Incentive – Journey so Far
Introduction of Production Linked Incentive Scheme
The Production Linked Incentive (PLI) scheme has profoundly impacted India’s manufacturing sector by enhancing capabilities and boosting exports. In the financial year 2023-24, the scheme approved 746 applications across 14 sectors. In the Telecom and Networking Products sector, 42 companies, including MSMEs and global firms, were set to benefit. Meanwhile, the White Goods sector saw 64 approved applicants committing ₹6,766 crore. With a total outlay of ₹1.97 lakh crore covering 14 key sectors, the PLI scheme aims to elevate domestic manufacturing to global standards and foster industry leaders.
The PLI scheme in India specifically targets labour-intensive sectors to generate employment opportunities for India’s workforce. It encourages local firms to expand manufacturing operations and attracts foreign investment. Notably impactful in strategic and emerging industries, the PLI scheme benefits these industries by reducing import costs, enhancing the competitiveness of locally manufactured goods, boosting domestic production capacity, and stimulating exports.
Despite its successes, the scheme faces scrutiny over the effectiveness of its incentives, particularly in sectors like semiconductors. Critics highlight concerns regarding domestic value addition and the long-term viability of such subsidy-driven strategies, despite notable job creation in regions like Tamil Nadu.
Performance Highlights till 2024:
Investment: Cumulative investment exceeded ₹1.06 lakh crore by December 2023.
Production and Sales: Resulted in production and sales totaling ₹8.61 lakh crore.
Employment: Generated over 6.78 lakh jobs, both directly and indirectly.
Exports: Exports surpassed ₹3.20 lakh crore, driven significantly by sectors such as Electronics Manufacturing, Pharmaceuticals, Food Processing, and Telecom & Networking products.
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.
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Read MoreFormalisation of India’s Labour Market
India’s vast working-age population presents a remarkable opportunity for economic growth and development. To fully capitalise on this demographic dividend, we must focus on creating formal jobs that are safe, productive, and well-paying. Currently, sectors such as agriculture, construction, wholesale and retail trade, manufacturing, and transport dominate India’s informal economy, accounting for 87% of all informal employment. The NITI Aayog, in its voluntary reporting of Sustainable Development Goals, has stated that approximately 80% of India’s workers are employed in the unorganised sector and more than 90% in informal employment.
Expanding formal employment can be achieved by addressing three critical areas in salaries: (i) the gap between gross and net wages; (ii) the disparity between real and nominal wages; and (iii) the differences between government and private sector wages. The government has launched several initiatives aimed at transitioning to a more formal labour market, including but not limited to— facilitating faster structural transformation and making the manufacturing sector the new growth hub under the ‘Make in India’ initiative; ramping up investments in connectivity, digital, logistics, and other infrastructure; nourishing MSMEs to enhance their productivity, competitiveness, and sustainability to create more jobs; reducing the cost of capital and implementing regulatory reforms to promote ease of doing business; enhancing the employability of youth and informal economy workers, alongside increasing the focus on fostering entrepreneurship, innovation, and startups.
Formalising the blue-collar sector
Formalising the blue-collar sector is essential for ensuring economic stability and growth. It brings numerous benefits for blue-collar workers, including:
- Legal Protection and Job Security: Formal employment ensures that workers are protected by labour laws, which safeguard their rights and provide job security. This reduces exploitation and unfair treatment in the workplace.
- Better Wages and Benefits: Formal jobs offer better wages and benefits such as health insurance, pensions, and provident funds. This improves the overall standard of living for blue-collar workers and their families.
- Skill Development and Career Advancement: Formal employment provides opportunities for skill development and career advancement. This enhances workers’ productivity and allows them to move up the career ladder, contributing to overall economic productivity.
- Social Security: Formalisation ensures that workers have access to social security benefits, which are crucial for their well-being and financial stability, especially during times of illness, injury, or retirement.
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
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Read MoreHealthcare & Pharma Jobs in India: Key Drivers & Opportunities
Healthcare & Pharma Jobs in India stand as a pillar of growth and innovation, offering a plethora of opportunities for professionals seeking to carve out a rewarding career path. With its robust infrastructure, skilled workforce, and supportive government policies, the Indian pharma sector continues to flourish, driving economic development and societal impact.
The Indian healthcare market is projected to reach US$ 638 billion by 2025. As of 2024, the healthcare sector stands as one of India’s largest employers, with a workforce of 7.5 million people. Additionally,the integration of Artificial Intelligence (AI) within the Indian healthcare sector will generate nearly 3 million new jobs by 2028, replacing approximately 23% of existing positions. The pharmaceutical industry in India is expected to reach $65 Bn by 2024 and $130 Bn by 2030.
Key Factors Powering Healthcare & Pharma Jobs in India
Demographic and Lifestyle Changes Driving Healthcare Demand: India’s rapidly ageing population and the rising prevalence of chronic diseases have significantly increased the demand for healthcare services and specialists. The elderly population requires more geriatric care, while the growing incidence of diabetes, cancer, and heart disease necessitates a greater number of doctors, nurses, and allied health professionals in hospitals, clinics, and home care settings. Additionally, rising disposable incomes have enabled more frequent healthcare utilization for diagnosis and disease management. This surge in demand presents substantial opportunities for job creation at all levels within the healthcare sector.
Government Programs and Infrastructure Expanding Access: Several major government initiatives are enhancing healthcare access in rural areas, driving job growth in the sector. Programs like Ayushman Bharat and Pradhan Mantri Jan Arogya Yojana aim to provide health coverage to millions, necessitating the establishment of more healthcare facilities and the recruitment of additional healthcare workers. Significant investments in new hospitals, clinics, diagnostic centers, and health technology, particularly in Tier 2 and 3 cities, have opened up numerous opportunities. Job creation is expected in areas such as infrastructure construction, facility operations, patient care, insurance administration, and other support functions.
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.
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Read MoreEvolving Female Labour Force Participation In India: The Next Growth Chapter
India has a rich history of women playing significant roles in various spheres of life. However, despite this legacy, entrenched cultural norms, patriarchal structures, and societal expectations have confined women to domestic roles, restricting their access to education and economic opportunities. In this context, the call for diversity and equality has evolved from a mere desire to a crucial mandate. While there has been progress, achieving fair representation, including increasing female labour force participation, is now at a critical stage and requires immediate attention.
Current scenario of women’s participation in the workforce
Female labour force participation in India has witnessed a notable uptick in recent years, albeit from a lower base compared to global averages. With younger, more educated women entering the workforce, the dynamics are shifting. However, India’s predominant male workforce presents a challenge for harnessing its demographic dividend. As India aims for a GDP growth rate of 8% by 2030, women must account for more than half of the new workforce to achieve this target.
According to the State of Working India Report 2023, the composition of the female workforce in India is evolving, with an increasing number of younger women possessing higher levels of education joining the labour market. With India projected to possess the world’s largest working-age population, approaching nearly 70% by 2030, the current low level of female participation in the workforce is increasingly untenable. As India seeks to become a principal contributor to global economic growth, with a targeted GDP growth rate of 8% over the next five years, it is imperative that women constitute more than half of the new workforce to be integrated by 2030, as outlined in the report titled ‘India’s Breakout Moment’.
According to the latest Periodic Labour Force Survey (PLFS) report 2023, the female labour force participation rate for those aged 15 and above rose from 23.3% in 2017-18 to 32.8% in 2021-22, marking a 9.5% point increase. This growth was more pronounced in rural areas, with an increase of 12.0% points compared to a 3.4% point rise in urban areas. Specifically, the female LFPR in rural regions increased from 24.6% in 2017-18 to 36.6% in 2021-22, reflecting a 12.0% point rise.
Recent trends indicate a rise in women’s participation in India’s labour force, but largely in the realm of self-employment; a development likely motivated more by economic necessity than by growth opportunities. The creation of employment opportunities is a titanic task that will not only foster economic growth but also bring social stability.
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.
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Read MoreIs the Annual Performance Appraisal Moving Beyond Monetary Compensation?
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.
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