High attrition with a 57 percent rate remains a concern amid the growth in the consumer durables and electronics sector, according to TeamLease’s Staffing Perspective Report.
Regrettable attrition, making up 22 percent of departures, includes employees whose outstanding performance led to incentive earnings above the company average. Conversely, non-regrettable attrition, which accounts for 31 percent, involves employees who did not earn any incentives, the report added.
Metros experience the highest attrition rate at 71 percent, while Tier 2 and 3 cities have comparatively lower rates. The lowest attrition rate is found in Tier 1 cities.
The report noted that the cost of attrition to the organization with 1000 employees is approximately Rs 3.64 crore. The opportunity cost due to attrition specific to the in-shop promoter role is approximately Rs 118.6 Crore for an organization of 1000 employees.
“Our report uncovers over Rs 100 crore opportunity cost pertaining to lost revenue for a mid-sized firm, highlighting the urgent need for businesses to address this issue proactively.” said Balasubramanian A, Senior Vice President. “Tackling attrition is not just a cost-saving measure but an investment in the sustained growth and competitiveness of our manufacturing and retail powerhouses.” he added.
The report highlights key high-demand temporary roles essential for the growth of the consumer durables and electronics industry, including in-store promoters, service technicians, supervisors, sales trainers, channel sales executives, customer support executives, warehouse managers, tele-support executives, and electronics engineers.
Notably, the air conditioner market is expected to reach $5.8 billion by 2028, with a CAGR of 15 percent, while the mobile phone market is projected to hit $61.2 billion by 2028, growing at a CAGR of 6.7 percent.
The demographic profile of the temporary workforce shows it is predominantly male (94 percent), with an average age of 31 years and an average tenure of 2.8 years. Over half of this workforce has an education level below the 12th grade, indicating a need for targeted training to develop the necessary skills for productivity.
The report noted that the temporary workforce is mainly concentrated in the South region. The top five states with the highest growth in temporary jobs are Tamil Nadu, Karnataka, Maharashtra, Uttar Pradesh, and Telangana. At the city level, Bengaluru, Hyderabad, Chennai, Kolkata, and Mumbai lead in temporary job growth.
The report also highlights compensation trends, noting differences in average annual CTCs and incentives across regions and city tiers, with metro cities having the highest yearly CTCs and tier 2 cities offering the highest average monthly incentives.
“Understanding the specific needs and dynamics of the temporary workforce is crucial for driving sustainable growth in the consumer durables and electronics sector. As India establishes itself as the world's third-largest consumer market, we have a generational opportunity to reimagine workforce solutions.” said Kartik Narayan, CEO of Staffing.
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