Benefits of Smart factory

1. The Inclusive and Integrated Manufacturing Strategy: Industry 4.0 provides an inclusive and integrated manufacturing strategy that connects the physical and digital realms. This connectivity improves collaboration between departments, leading to enhanced efficiency and productivity across the entire value chain.
2. Bridging the Skill Gap: To fully leverage the potential of Industry 4.0, businesses require a skilled workforce. Educational institutions play a pivotal role in addressing the skill gap by incorporating new courses that align with emerging technologies in the manufacturing sector.
3. Collaboration with Industry: To ensure the relevance of educational programs, collaboration between educational institutions and industry players is vital. By establishing partnerships, educational institutions can align their curriculum with the evolving needs of the manufacturing sector, preparing students for Industry 4.0 careers.

Impact of Smart Factory on Jobs

The impact of Smart Factory on jobs is multifaceted and can be both positive and negative. There are few pointers to be considered:

1. Job Displacement: Automation and new technology might replace laborious and repetitive human activities. Manufacturing, logistics, and customer service may lose jobs. Self-checkout systems and assembly line robots can replace cashiers.
2. Job Transformation: Smart factories creates new employment and possibilities while eliminating some jobs. Data analysis, cybersecurity, software development, and digital marketing requires skilled people. Jobs that require complex problem-solving, creativity, and interpersonal skills are difficult to automate.
3. Job Augmentation: Smart Factory Technology can improve human competencies and job functions without replacing them. Collaborative robots  (Cobots) work alongside humans that help employees and boost their productivity. Human-machine collaboration improves workplace efficiency and safety.

Conclusion

Industry 4.0 and the rise of smart factories are transforming the manufacturing landscape by integrating advanced technologies and data-driven processes. This new era requires a skilled workforce with digital literacy, data analysis capabilities, and a fundamental understanding of automation and robotics. The transition from Industry 3.0 to Industry 4.0 represents a significant leap in terms of connectivity, intelligence, and efficiency in industrial operations.

To fully embrace the potential of Industry 4.0, businesses and educational institutions must collaborate closely. Educational institutions need to update their programs and include courses that cover emerging technologies such as IoT, cybersecurity, robotics, and 3D printing. This will equip future engineers and workers with the necessary skills to thrive in the Industry 4.0 environment.

Smart factory offer numerous benefits, including an inclusive and integrated manufacturing strategy that enhances collaboration between departments, bridging the skill gap through education-industry partnerships, and optimizing operations for improved efficiency and productivity across the value chain.

As Industry 4.0 continues to advance, it is crucial for businesses and educational institutions to embrace the changes, adapt to the evolving demands of the manufacturing sector, and nurture a workforce that can leverage the potential of smart factory. By doing so, we can unlock the full benefits of Industry 4.0 and shape a more efficient, connected, and intelligent future for manufacturing.

Top and bottom paymasters

In recent years, several industries in India have witnessed significant salary growth. Telecommunication, Media & Entertainment, and  IT & Knowledge Services are the top three industries that have experienced notable salary growth in FY 22-23. While BFSI, Automobile & Allied, and Agriculture & Agrochemicals have witnessed relatively lower salary growth in FY 22-23.

Industries with steady and quick job growth

Agriculture and Agrochemicals industry has experienced a remarkable digital transformation, leading to the emergence of highly lucrative “hot jobs.” IT and Knowledge Services industry remains committed to offering attractive rewards across job categories and prioritises investment in growth-focused roles.

The BFSI industry is actively generating diverse job roles in both hot and longstanding sectors while optimising payouts. BFSI industry is leveraging technology to improve efficiency, drive innovation, and stay competitive in an increasingly digital world.

Resilience amidst attritions, layoffs and changing world of work

While it is assumed that the storm caused by various global headwinds has begun to subside and transition into a phase of recovery, it is crucial to acknowledge that salary continues to be a significant motivating factor for candidates when deciding where to work. In the aftermath of the Great Resignation, layoffs, and attrition, companies should proactively review their salary structures and explore non-monetary strategies to enhance talent attraction and retention.

Implementing learning solutions and upskilling initiatives can be a powerful strategy to combat organisational attrition. By offering employees opportunities to enhance their skills and knowledge, companies demonstrate a commitment to their professional development and growth. Upskilling programs equip employees with the necessary competencies to thrive in their current roles and provide them with a sense of purpose and motivation to stay with the organisation. Companies can cultivate a culture that values growth and creates a positive work environment by prioritising continuous learning, investing in employee development, fostering engagement, and implementing strategies to reduce attrition rates. Moreover, employees who feel supported in their professional growth are more likely to remain loyal and contribute to the organisation’s long-term success.

The future belongs to those who are resilient and agile. In today’s rapidly changing work scenario, adaptability is crucial. Willingness to embrace and invest in new technologies, work methodologies, and skilling programs will help businesses stabilise and foster long-term growth.

Get a FREE copy of the latest ‘Jobs and Salaries Primer 2023’ for a deeper understanding of how employers prioritise highly specialised job roles and other valuable insights. Download now!

Reskill existing or hire new?

The green economy will require new labour market skills, profiles, qualifications, and training, particularly in areas related to environmental sustainability. Companies must prepare their workforce for the upcoming sustainable changes, including the rise of green collar jobs such as environmental consultants, solar panel installers, and wind energy technicians.

A significant question arises: should organizations reskill their existing workforce or hire new talent for the emerging green economy? Both strategies can effectively address the growing demand for green jobs, which are crucial for economic growth and the transition to electric vehicles.

Reskilling existing blue collar workers has several advantages, including cost-effectiveness and fostering loyalty. This approach can help organizations adapt to the needs of the green economy while utilizing the experience of their current workforce.

Conversely, hiring new talent can introduce fresh perspectives, skills, and ideas. Bringing in green collar workers can diversify the workforce and provide access to a larger talent pool. New hires may possess specialized skills in renewable energy technology or environmental policy, which are essential for advancing environmental sustainability initiatives.

Initiatives taken by Indian Government to upskill the workforce

The Indian government has taken several initiatives to upskill the workforce for green-collar jobs. Here are some of the key initiatives:

• National Skill Development Corporation (NSDC): The NSDC is a public-private partnership promoting youth green jobs by developing skills in various sectors, including renewable energy and sustainable agriculture. NSDC develops and implements skill development programs to promote green jobs in India by leveraging the expertise of training providers, industry associations, and other stakeholders.
• National Action Plan for Climate Change: The Indian government’s National Action Plan for Climate Change focuses on creating a skilled workforce for the green economy. The plan includes initiatives such as the Green Skill Development Program, which provides training in solar energy, sustainable agriculture, and waste management.
• National Solar Mission: The National Solar Mission aims to promote the use of solar energy in India and create job opportunities in the solar energy sector. The mission includes initiatives such as the Surya Mitra program, which provides training for solar photovoltaic technicians.
• National Mission for Sustainable Agriculture: The National Mission for Sustainable Agriculture focuses on building the skills of farmers and agricultural workers in sustainable farming practices.

Conclusion

Green-collar jobs are becoming increasingly important as the world addresses climate change and seeks sustainable solutions. The demand for skilled workers in renewable energy, energy efficiency, and sustainable agriculture is growing. Building a job-ready workforce for the green economy is critical and requires collaboration and investment in skills development across the board. Organisations can choose either to reskill their existing workforce or hire new talent for the green economy, with each approach having its advantages, but action and momentum are imperative to keep in step with the future that is already here.

• On-the-Job Training: One effective learning solution for combating attrition is on-the-job training provided at TeamLease Skills University. This can involve mentoring, job shadowing, or cross-training opportunities that help employees develop new skills and gain practical experience. For example, an employee in a customer service role could be given the opportunity to shadow a sales representative, gaining insight into the sales process and developing a better understanding of the products they are selling.
• Continuing Education: Another learning solution is continuing education for long term retention. This could involve offering courses, workshops, or conferences that help employees stay up-to-date on the latest trends and best practices in the healthcare industry. By investing in their employees’ professional development, companies can create a more knowledgeable and skilled workforce that are better equipped to adapt to changes in the industry.
• Providing leadership development programs is another effective way to combat attrition. These programs can help employees develop the skills they need to take on more senior roles within the organization. This could involve training in areas like communication, decision-making, and conflict resolution. By investing in the development of their employees, companies can create a culture of growth and opportunity that encourages employees to stay with the company long-term.
• Career Development: Consumer healthcare companies could also offer career development programs that help employees set goals and develop a plan to achieve them. This could include career counseling, online certification programs, skills assessments, online degree/diploma programs from India’s best universities,  that help employees identify their strengths and areas for improvement. By providing employees with a clear path for growth and development, companies can help to increase job satisfaction and reduce attrition.

Finally, creating a positive work environment is key to combating attrition. This could involve regular feedback and recognition, team-building activities, and opportunities for employees to provide input and feedback. By creating a culture of openness and transparency, companies can foster a sense of community and belonging that encourages employees to stay with the company long-term.

In conclusion, implementing learning solutions—a combination of both ongoing bite-sized programs and long-term courses—is one of the critical employee retention strategies in the consumer healthcare industry. By providing employees with on-the-job training, continuing education opportunities, leadership development programs, career development initiatives, and employee engagement activities, companies can create a more skilled, engaged, and productive workforce. These efforts not only enhance employee capabilities but also strengthen their sense of belonging and purpose. By investing in their employees’ professional growth and well-being, organizations can foster a culture of growth and opportunity that encourages long-term commitment and loyalty. Ultimately, forward-thinking companies that prioritize learning as part of their core employee retention strategies are more likely to retain top talent and maintain a competitive edge in the industry.

Let’s explore the root causes behind why are women employed in low paid work:

• Gender discrimination: Whether deliberate or unintentional, gender discrimination is one of the main reasons women are employed in low-paying jobs. According to studies, women frequently earn less money than males in the same profession or sector, despite having the same skills and background.
• Education and training: The need for more options for education and training contributes to women’s employment in low-paying jobs. Once more, gender discrimination is a significant factor in this. Women are also expected to stay inside the four walls of their homes or in the kitchen. The major role of Indian women is essentially caregiving duties. Although many women strive to fulfil their goals of pursuing higher education and professional life, they are compelled to take a backseat.
• Technical skill: Technical skill is another area where women are underpaid compared to males. Despite doing the same amount of physical work as women, men are generally seen as more technically skilled than women.
• Job location: Job location matters for women. According to studies, a woman typically rejects job transfer during her employment and places restrictions on shift length or night hours.
• Family responsibilities: Women perform a significant amount of unpaid caregiving tasks, such as caring for young children, elderly relatives, and household chores. This may hinder their ability to work and advance in their careers. Many women today choose part-time or low-paying work to balance their professions with their caregiving responsibilities.
• Lack of flexible working provisions: The concept of work-life balance is still evolving in India, especially for women who face unique challenges in balancing their professional and personal lives. However, there are positive developments taking place that are making it easier for women to achieve this balance. The rise of women entrepreneurs is a positive trend that highlights the need for more flexible working arrangements and policies. It is important for both the government and private sector to continue working together to create more flexible and inclusive working arrangements and policies for women in the workforce such as telecommuting, job-sharing, and flexible schedules.

• Occupational segregation: One significant cause is the propensity for men and women to work in distinct industries and professions, sometimes known as occupational segregation. Women are frequently overrepresented in lower-paying areas like education and healthcare and underrepresented in higher-paying ones like technology and finance. This may result in a sizable pay gap between men and women.
• Women’s safety at workplace: Ensuring women’s safety is essential to creating a healthy and productive work environment. The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act of 2013 was enacted to prevent women from experiencing sexual harassment in the workplace. In addition to the act, the Ministry of Women and Child Development has developed guidelines for employers on preventing and responding to sexual harassment at work. These offensive and humiliating experiences often result in emotional and physical trauma and related illnesses, reducing morale and productivity. But research reveals that the issue and its awareness have progressed significantly in a brief time frame in the workplace across the globe.

• Soft skills: Due to societal norms, women have limited prospects for growth opportunities. Women also need to gain soft skills necessary for the 21st century, such as leadership and communication. They can learn essential digital technologies and soft skills like leadership through upskilling.
• Negotiation and self-advocacy: Lastly, negotiation abilities and self-advocacy can also impact the pay gap. Women are frequently socialised to lack assertiveness and to avoid salary negotiations, which can cause them to be paid less than their male counterparts.

The reasons mentioned above why women are employed in low-paid work are just a few instances among many factors affecting women from earning more. Women’s low involvement is primarily a result of the deeply rooted patriarchal institutions that deny them equal opportunity. Many women prefer to pursue part-time employment and other key considerations like child care and working from home as they often have to balance their careers with traditional family responsibilities. Women are forced to withdraw from entering the workforce and learning 21st-century technology skills due to a lack of access and literacy, which has had a negative effect on the economy.

Despite their many obstacles, most women need and want to work. Statistics understate entirely how much work women do for no pay at all. When work at home is included, women worldwide put in far more hours than males. India has one of the lowest percentages of women workforce worldwide, and data from the ILO shows that the percentage is currently less than 30% and has been falling over time.

In 2022, the Supreme Court recently called for greater support for the staff of Anganwadis; this is seen as creating more productive employment opportunities for women while improving the quality of their children. Employers can equally play a prime role in bridging women’s workforce participation. Organisations can focus on the skill set required for positions rather than qualifications alone – doing this will likely widen women’s recruitment pool substantially.

You might also like to read our report on “No Women Left Behind”, a comprehensive study showing that a significant proportion of the women who are currently in the workforce do not have access or are not eligible for any social security benefits.

At TeamLease, efforts are persistently underway to comprehend and address the gender gap, striving to improve female participation in both the workforce and leadership positions. The focus remains on finding effective strategies to reduce the disparities that exist. Prioritising gender equality in the workplace can deliver a positive social impact while reaping the tangible business benefits of a diverse and inclusive work environment.

Join us in creating gender equality at work! If you are looking for more women to join your workforce and drive positive change, please connect with us.

Hiring intent by job level: The intent to hire at mid- and senior-level positions increased in Q1 (Apr-Jun) FY 2023-24 for both services (4% increase) and manufacturing (5% increase). Employers are strategically focused on rebuilding their teams and moving towards lateral hiring. Entry-level positions are seeing a possible slowdown in hiring, bringing down the intent to hire for entry-level positions in both services and manufacturing by 6% apiece.

Hiring intent by business maturity: Large-sized organisations in both the services (86%) and manufacturing sectors (73%) have weathered the recessionary sentiment well and have higher levels of intent to hire compared to the previous quarter. But the hiring sentiment in the medium-sized businesses and small enterprises sees a decline in this quarter (approximately 4% & 8%).

Attrition continues to hurt businesses

Attrition continues to loom over businesses. Employers are attempting to strike a balance between attracting potential employees and retaining them for longer through their compensation plans.

In the manufacturing sector, the healthcare & pharmaceuticals industry continues to witness double-digit attrition at 14.11%. However, it is over 1% less than the previous quarter. The Electric Vehicle & Infrastructure industry repeatedly outshined, displaying the lowest attrition rate of 2.09%.

The services sector is also one of the sectors that have been hit hardest during economic instability. This time also, it’s not different either. Information Technology, yet again, witnesses a high attrition rate of 29.17%, while Travel & Hospitality witnesses the lowest attrition of 2.57%.

Conclusion

The TeamLease quarterly ‘Employment Outlook Report Q1 FY24’ is a forward-looking tool for human resource professionals and policy and decision makers, reflecting hiring sentiment across 14 cities, 9 manufacturing industries, and 14 service industries in India for non-white-collar jobs. This report carries “Intent to Hire” statistics for Q1, 2023-24 [Apr, 2023 – Jun, 2023], on the basis of the survey and analysis carried out during January and February, 2023.

Women Working after Marriage

A recent National Family Health Survey (NFHS-5) report suggested that only 32% of married women aged 18 and 49 are employed. This percentage is much higher for married men in the country, 98% for the same age group. Fortunately, this percentage has increased compared to the last report of NFHS-4. 

As the doors of women’s jobs open, women also take advantage of the various opportunities they are eligible for. With the nation’s growing economy, more and more women are getting their home businesses up and running, freelancing, and providing services to generate alternate streams of income for their families. 

Although women are being empowered and are increasingly working, most women end up having to take a break from their careers due to some or other responsibilities, like childbirth, rearing of infants, transfer of spouse’s work location, etc., which is looked down on when returning to work after a gap.

A recent report by the National Sample Survey Office (NSSO) on women’s participation in India’s economy estimates that there are over 20 million housewives in the country. The report further said that the share of housewives in the GDP of India is expected to increase in the next few years as women become more empowered.

Women in Leadership

In India, 17.1% of the board seats are held by women, according to the latest edition of Deloitte Global’s Women in the Boardroom report. This is 9.4% higher than the 2014 edition when the Companies Act mandated that one woman should be on every board. In addition, 3.6% of board chairs are female, 0.9% lower than the 2018 figure. 

There is a definite improvement, and the momentum of change is picking up, yet there is a long way to go for us to be recognised as an equitable society.

Helping Women Transition back to Work

It is a common misconception that women with gaps in their resumes lack experience. Women should be credited for their experience in running their home enterprises. They develop and leverage a myriad of skills like, soft skills, conflict resolution, health management, and people management skills while managing a household. They also manage their household’s monthly budget, providing them with practical financial management experience. They should be recognised at par based on these experiences if not equal to their male counterparts with professional enterprise experience.

Still, women often find it challenging to transition back into the workforce after taking a break from their careers.  However, they can successfully make the transition with proper support and guidance. This can be achieved through mentorship programs, career counselling, online courses and programs, and staying current with job market trends.

Many companies, like Goldman Sachs, Cloudflare, Microsoft, Morgan Stanley, Accenture, Amazon, IBM, etc., have offered return-to-work programs to help women transition back to work through numerous programs. These programs run for a few months providing Training, experience & Networking opportunities to professionals for a smooth transition.

Countries Supporting Women

Many countries have implemented policies and programs to empower women and this is to help them transition back to work after taking time off for caregiving responsibilities. Here are some examples:

• The Canadian government provides numerous programs and initiatives to help women re-enter the workforce. These include job training, subsidised childcare, and tax credits for caregivers.

• Sweden has one of the world’s most generous parental leave policies, with up to 480 days of paid leave per child. The government also offers subsidised child care and flexible work arrangements.

• The UK has multiple programs to aid women returning to work. “The Women Returners Network” is one of them, and it offers coaching, training, and job opportunities for women who have taken a career break.

• The Australian government provides various programs to aid women in returning to work. These initiatives include free career counselling, flexible work arrangements, and subsidies for child care.

• France has implemented various policies to support working mothers. These include subsidised child care, paid parental leave, and the right to request flexible work arrangements.

Conclusion

Women in India have and continue to face significant challenges through social stigma and discrimination due to their lack of formal employment, despite their vital role in households and communities and the experience they gain from this home enterprise management. However, there is hope for change as more and more women are taking advantage of various opportunities to generate income from their homes. 

It is essential to acknowledge the value of their work, not just the monetisation of it, and support policies that promote gender equity and fair compensation. In addition, it is also crucial to help women transition back to work after a break. Many countries have implemented policies and programs to empower women and facilitate their return to the workforce. In the end, it is pivotal to continue working towards gender equality & equity and to support and grow women’s participation in all aspects of the workforce, the economy, and the society at large if India wants to achieve its true potential in the coming decades.

To know more about Women Participation in the Indian Labour Force, do remember to check out our No Women Left Behind Report.

Here are 13 reasons why companies should seek staffing solutions:

1. Finding the Right Talent: In India, the country’s working-age population is expected to increase by over 100 million people between 2020-2030, according to a report by the Confederation of Indian Industry (CII). As more people enter the job market, companies must find ways to set themselves apart and attract the best candidates. This is where HR staffing agencies come in, assisting employers in connecting with top talent who meets their specific requirements.
2. Access to Vast Talent Pool: A reputed Pan-India staffing firm has a comprehensive portfolio of access to talent. It can supply any tech/non-tech talent required due to their scale of sourcing and keen eye for talent acquisition process. Companies can avoid making wrong hires with the help of a staffing agency’s quick placement and credible verification process.
3. Accelerate Hiring Process: A staffing firm manages the voluminous task of screening and evaluating resumes, which can be daunting in a country like India. This saves companies a lot of time as their internal team doesn’t have to  assess hundreds of resumes to find the right placements. When companies work with an IT staffing company, they  outsource their  bulk recruiting efforts, thus speeding up and streamlining their hiring.
4. Specialised Recruitment Needs: Some industries or roles may require specialised knowledge or experience that is not readily available to the company. HR staffing agencies with expertise in these areas can help identify and recruit suitable candidates.
5. Diversity and Inclusion: Contract staffing agencies have access to a more diverse pool of candidates, helping employers to improve their diversity and inclusion impact.
6. Flexibility: Staffing agencies can provide temporary or contract workers to meet specific short-term needs, or help fill permanent positions. This can be particularly useful for businesses that experience fluctuations in demand or have specific project/time-based needs.
7. Reduction in Turnover: HR staffing agencies can help ensure that candidates are well-suited to the role and have a good cultural fit with the company, hence reducing turnover and associated replacement costs.
8. Increased Productivity: Temporary Staffing aids in recruiting the right candidate for the job role within the organisation. It focuses on human resource recruitment, training, and development in organisations, which contributes to increased productivity. The Hire-Train-Deploy model is a disruptive training and hiring program that aims at bridging the gap between industry expectations and the time required to hire talent ready to be employed on the main job immediately.
9. Cost-effective: Outsourcing recruitment to a staffing firm can be more cost-effective than conducting the process in-house, especially for smaller companies that may not have a dedicated HR department.
10. Handle Onboarding and Payroll: A significant benefit of using staffing agencies is that the staffing agency takes care of the temporary employees’ onboarding paperwork, payroll taxes, workers’ compensation, and unemployment benefits.
11. Mitigation of Risk: Staffing agencies have expertise in compliance with employment  & Labor  laws and regulations across states in the country, reducing the company’s risk of legal issues related to hiring and employment.
12. Leverage Technology: When it comes to staffing, technology can reinvent standard practices and support to automate already game-changing ones. In this fast-paced economy, staffing agencies have always been required to innovate in novel and creative ways.
13. Oversee Company Compliance: Before the economic emergency of 2008 and the Great Recession, compliance might have been considered a hefty expenditure but not anymore. Outsourcing compliance processes has enabled companies to meet global compliance needs and drastically reduce overhead costs, including infrastructure and operating costs.

Growth lies in learning how to dance in the downpour

The future demand for skills is constantly evolving due to advancements in technology, changes in industry, and shifts in the global economy. Creativity, time and project management, agility, IT automation, data analysis and statistics will continue to be the top in-demand skills and employers will continue to wrestle with finding the right talent, the right fit. Outsourcing staffing needs to a trusted third-party agency can provide a range of benefits for businesses of all sizes, from cost savings and time savings to access to a larger pool of qualified candidates and specialised expertise in recruitment and hiring. By partnering with a reputable and compliant staffing agency, businesses can build a skilled and reliable workforce, reduce risk, and focus on core activities that drive growth and success.

What types of products and services can be provided by BCs?

The roles and responsibilities of BCs can be defined under the contract between the bank and the retail agent, which may differ from other banks’ norms and conditions.

Business Correspondents are responsible for executing numerous functions, which have been explained below:

• By identifying prospective customers for the bank, business correspondents engage prospects in generating awareness among customers on the bank’s available service options and financial products.
• BCs run a small campaign at the ground level to educate and advise their customers on managing money, debt counseling and recommending small loans to target customers.
• BC also promotes, nurtures and monitors Self Help Groups, Joint Liability Groups, Credit Groups, and other cooperative societies in rural and suburban areas.

Day-to-day tasks which BCs perform

• Business correspondents collect and handle preliminary processing documents for deposits that involve verification of primary information/ data.
• They are responsible for enrolling customers for various financial products and services. This also involves filling out various applications and documents of products and services the bank provides in that area.
• Business correspondents also complete the whole “know your customer” (KYC) procedure as part of the opening formalities requiring the occasional collecting of crucial client information.
• They are authorized by the bank to provide account statements and other account-related information for a minimum period of 3 months to their customers.
• Business correspondent promotes cross-sell and promotes products through kiosk banking facilities, including mutual fund products, pension products and other such third-party products.

Disbursing and Collection through Business correspondent

• The business correspondents are accountable for collecting and paying small-value deposits and (cash) withdrawals, the maximum value of which is Rs. 2,000 per transaction, while there is no minimum limit.
• Business correspondents are responsible for handling the receipt and delivery of small-value remittances.
• Depending on bank guidelines, they are also involved in disbursing small loans, like entrepreneurial and agricultural loans.
• They are monitors and collectors for the bank’s loan customers.

Who can act as a business correspondent?

When the BC model was introduced in 2006, few institutions were authorized to function as BCs, including NGOs and MFIs established under societies or trust statutes, societies registered under the Mutually Assisted Cooperative Societies Act or the Cooperative Societies Acts of States, Section 25 businesses, and post offices. Later in 2008, the RBI refined its guidelines and included banks where banks can engage such companies as BCs, which are stand-alone entities, or Section 25 companies, in which NBFCs, banks, telecom companies, and other corporate entities or their holding companies do not have holdings in excess of 10%.

The Committee on Inclusion, which is led by Dr C. Rangarajan, thinks that banks are getting worried about the lower margins they can make on financial intermediation because there is more competition among them. They also think that small-value clients (depositors) in remote areas don’t get much help getting access to financial services.

The agency that wants to serve as BC must have a workforce that can be deployed across India. A BC agent should have strong sourcing channels such as referrals, online and offline channels, partner channels, and university and college connections.

The BC agent must have a model that assists the bank in hiring or Hire-Train-Deploy business correspondents. The BC agent is also given the infrastructure and asset service needed to set up offices all over India and run the BC model according to the bank’s rules and guidelines. A BC agent should have strong compliance norms that adhere to RBI guidelines to run the business model.

Why should Banks adopt the Business Correspondent Model?

• Low operation cost for banking service – In-person discussion with BC agent will lead to more CASA deposits at a much lower cost.
• Performing banking at a mobile location – rooted in the local community will give you a great advantage, banks will be close to their rural clients.
• Agility in service – BC provides better flexibility in terms of the delivery of financial services.
• Reactive response – BCs are more responsive to the needs and challenges of local clients.
• Local Engagement – Banks are generating local engagement through the BC model.

In addition to the direct income contributions from these new business sectors, service innovation will be essential to fostering expansion in the connection industry.

5G for business

When examining the benefits of 5G for business transformation, numerous significant common traits become apparent, such as:

-The ability to perform any process remotely, regardless of how vital it is for real-time control of any business operation, automating processes, utilizing compute resources when appropriate, and running edge apps when necessary to achieve higher security levels without compromising overall performance.

The Government of India has introduced the “Production Linked Incentive Scheme for Telecom and Networking Products” so as to attract large-scale investments in telecom equipment manufacturing and augment the domestic production capacity.

5G edge computing will enable businesses to maximize their data usage and act upon insights quickly. AI can process massive amounts of data quickly with fast connections. For instance, in a smart city, AI can automatically adjust traffic lights when a new apartment complex is built. AI-assisted security and machine vision can secure facilities by recognizing possible threats or unauthorized visitors.

Gaming will be more captivating with 5G. HD streaming will have faster speeds and less latency, so gaming won’t need devices with a lot of power. Businesses can leverage 5G to gain revenue, reduce operational costs, and enhance the customer experience.

Healthcare

Doctors and patients will be able to stay more connected than ever before thanks to 5G healthcare use cases. Wearable medical devices, such as an internal defibrillator, can alert a team of ER cardiologists in advance of a patient’s arrival. This data can be used to provide a full record of the patient.

Retail

The consumer experience will be crucial for 5G retail applications. The aisles of packed shelves from today’s stores might not exist in tomorrow’s stores.

Agriculture

The farms of the future will use more data and fewer chemicals.

Manufacturing

The confluence of 5G, AI, and IoT will completely transform factory floors. Aside from predictive maintenance, which helps control costs and minimize downtime, factories will use 5G to control and analyze industrial processes with unprecedented precision.

Logistics

With 5G services in India, fleet monitoring and navigation will become much easier at scale. An augmented reality system that identifies and flags potential hazards without diverting a driver’s attention away from the road could potentially power driver navigation.

Expected Job Growth :

-Installation and maintenance: 1L jobs

-Sales of handsets and broadband connections: 50000

-Technology jobs: 4mn to 6mn new jobs by 2026 in the areas of AI/ML/Engineers/IoT/ Private Networks/ MVNO/Apps/ Gaming Spectrum Management

In the next several years, businesses from a variety of industries, including automotive, manufacturing, healthcare, and education, are anticipated to adopt 5g Services in India in significant numbers. This indicates that there will be a need for staff that is knowledgeable about the new technology and how it operates, and as more and more industry sectors adopt 5G, the entire ecosystem is projected to change and India will be propelled toward a digital economy.

Is this a profitable and sustainable way?

The quick commerce trend has primarily accelerated due to its sheer speed, the convenience of ordering, and the rapid delivery. However, the faster turnaround times (TAT), combined with poor profits and greater delivery costs, put enterprises under pressure and made quick commerce a risky business model.

If we talk about Q-commerce in India, the cost of last-mile delivery for Q-commerce enterprises is  projected to be twice that of traditional e-commerce firms. Also, part of this industry works with gig workers. In this rat race to deliver within 10 minutes, the working conditions, health, and safety of the riders and delivery partners remain majorly compromised.

The cost of selecting and packaging can be decreased by rapid commerce players with the correct automation solution. Automated picking systems improve accuracy and productivity, two factors that are essential for online fulfillment. As opposed to manual operations, automated solutions can help a business save money on real estate rental costs by making use of vertical space that is often underused or nonexistent.

The question for new-age players is what kind of long-term moats they have built, as currently, burning more cash is the new trend. For a profitable and sustainable business model, the kind of strategy these companies build to tackle cash burn will be crucial for their success in the long run.

The Future of quick commerce

• Small shops and companies in metropolitan neighborhoods will eventually disappear due to quick commerce, suffering a fate similar to that of actual mobile stores in urban markets.
• Private equity companies that are backing these cutting-edge startups will start asking difficult questions. Many major players are turning to debt financing instead of equity fundraising as their funding sources are already running low. Numerous unicorns that received significant money and launched with a flourish have since seen their funding sources dry up, and numerous firms have failed.
• Only serious players who are committed to developing a successful model that prioritizes consumer needs and have their P&L in order will survive and emerge as long-term winners. Consolidation and rationalization among food delivery aggregators will be critical to improving – and potentially increasing – overall profitability.
• Incorporating other categories like pharmaceuticals, clothing, cosmetics, and gadgets. Already, platforms like 1MG, Pharmeasy, and Apollo are competing to speed up the delivery of the medications.
• A fleet of delivery robots or drones can further reduce last-mile costs by carrying more orders and reducing operational energy costs compared to manual operations.

What are dark stores?

High-level tasks in a typical warehouse system involve storing the products in the correct area, restocking the stock, choosing and packaging the components according to the order, and final shipment. In order to give delivery personnel ample time to reach the consumer, order arrival to dispatch times in dark stores should ideally not exceed five minutes (for a 15-minute guarantee time). As a result, creating a lean system to minimize time losses in all process phases due to unnecessary operator mobility or item searching becomes crucial for an efficient, quick delivery dark store or micro fulfillment centers.

How dark stores are changing the delivery systems?

Technological developments are making it possible to use space more effectively and to introduce intriguing new urban fulfillment possibilities, including dark stores. Internet retail sector sales are predicted to grow by 37 billion pounds by 2025, from 27 percent to 30 percent, according to the Future Gazing study.

A microcenter also requires workers to select and pack products, as well as prompt delivery services to get the products to customers’ doorsteps.

The attention that the sector is getting is only likely to grow in the future.

Final thoughts

Q-commerce is a newly emerging term that has opened many doors of opportunity in the commerce vertical. Keeping the current mindset in mind, picker/packer, loader/unloader, delivery, and inventory official/manager profiles will be prominent roles in this q-commerce industry, with a higher pay scale. In addition, quick commerce can also affect the job market in other ways. For example, it can create new job opportunities in the form of online customer service positions. Customers may need assistance with their online purchases, and businesses can provide this assistance by hiring people to answer customer inquiries and provide support.

Overall, quick commerce is an innovative way of doing business that can benefit both businesses and customers. It can also affect certain job markets, both positively and negatively. As businesses continue to embrace quick commerce, it is important to consider how it can affect the job market and how businesses can use it to their advantage.

Large firms lead the hiring intent by a significant margin

Employers anticipate strong hiring intent across sectors by business size.

• Small services firms are displaying a healthy appetite for growth and talent demand with a hiring intent of 57%, as demand for services – both India and global – surges in the aftermath of the covid pandemic.
• Medium-sized businesses muster a relatively modest hiring intent (45%), seemingly unable to capitalise as much on current market dynamics as their small counterparts.
• Large firms, on the other hand, lead hiring intent (79%) by a significant margin compared to both small and medium-sized businesses, as seasonality and large contracts from across the globe come to fruition.

Festive quarter brings in good tidings for freshers

While looking into the employment outlook, it can be seen that there is a festive demand in sectors such as E-commerce and Retail at the entry level. The festive quarter will likely bring in glad tidings for freshers and other entry-level talents as hiring intent for this category touches a robust 74% – the highest across all hierarchical levels.

The junior-level category is close on the heels of the entry-level with a hiring intent of 69%. Seasonal demand in sectors such as E-commerce and Retail (Essential) is driving the need for young talent. While mid-level hires enjoy a moderate level of hiring intent (48%), hiring intent at senior levels is at a relatively modest 34%.

Informational Technology and Sales functions continue their top spot in hiring intent

Compared to the previous quarters, this quarter’s employment outlook forecasts a net positive outlook of hiring across functions. Informational Technology at 94% and Sales at 87% continue their leadership in hiring intent at levels significantly better than the other functional areas. The exponentially rising need for digitization and demand for technology professionals is the prime driver behind this uptrend.

Engineering follows not very far behind Sales with a hiring intent at 76%, signalling the demand for specialised and expertise-driven roles, especially in the Information Technology and Telecommunications sectors.

The service sectors that hire for Blue Collar roles – Retail and Logistics – perform at average-to-poor levels compared to other sectors, resulting in a hiring intent at 53%. Office Services and Human Resources lag far behind.

Key takeaways:

Some of the positive indicators to sum up the employment outlook Q3 FY23 report (Services and Allied Industries Edition) include:

• Nearly 73% of employers in the services sector keen to hire this quarter
• IT, Education Services, E-Commerce & Allied Start-ups, and Telecommunications sectors tops the hiring intent
• Metro & Tier-1 cities precede the hiring brigade with the highest intent to hire at 95%
• Bangalore (97%), Chennai (90%) & Delhi (86%) are among the top cities looking to hire
• Entry-level roles sees the highest intent to hire at 74%, followed by junior-level roles at 69%
• IT (94%) and Sales (87%) roles continue to be the highest in demand, followed by the demand for engineering roles
• A remarkable double-digit attrition in the IT, Educational Services, Ecommerce & Allied Start-ups, and Knowledge Process Outsourcing Sectors is expectable

The trends driving transformation in the mechanics of hiring and hiring sentiment are not new but need to be abreast of the dynamics of the current labour market reality. Regardless of uneven economic growth hampered by Covid, the demand for skills in most service sectors and allied industries displayed a fairly impressive intent-to-hire trend. Thus, the prospect of hiring Intent in India’s services sector will likely continue in the third quarter, with 73% of employers keen to upsurge their talent pool.

Do grab the latest copy of TeamLease Employment Outlook Report Q3 FY23 (Services and Allied Industries Edition)