High attrition rate of 57 per cent remains one of the top concerns in the consumer durables and electronics sector, stated a report by TeamLease Services. Attrition remains a significant challenge, with the report differentiating between regrettable attrition (22 per cent of high-performing employees exiting) and non-regrettable attrition (31 per cent of employees who have not earned incentives). The cost of attrition to the organization with 1000 employees is approximately Rs 3.64 crore and 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.
Balasubramanian A, Senior Vice President at TeamLease Services, said, “Attrition is a persistent obstacle that can substantially impact an organization’s bottom line and growth prospects. 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. Tackling attrition is not just a cost-saving measure but an investment in the sustained growth and competitiveness of our manufacturing and retail powerhouses. We must reimagine talent management strategies to attract, nurture, and retain temporary workforce.”
TeamLease Services released its ‘Consumer Durables & Electronics – A Staffing Perspective Report’, which stated that India is cementing its position as the fastest-growing major economy and is anticipated to become the third-largest consumer market by 2027. The workforce in this sector will be crucial in enhancing its capacity to serve its intended beneficiaries and effectively attain sustainable growth. The report highlighted the critical role of this workforce in meeting the sector’s demand for diverse talent swiftly and efficiently.
Vedanta Resources expects highest-ever Ebitda of $6.5 billion in FY25
Tata Steel earmarks capex of Rs 17,000 crore for FY25
JSW Steel expects Rs 1,000 crore in revenue from JSW Magsure this year
Godfrey Phillips India posts Q4 profit growth of 45.6% at Rs 214.16 crore, final dividend announced
Per the report, the industry employs 94 per cent of male workforce with an average age of 31 years and a tenure of 2.8 years, signifying the need for gender parity in the consumer durables and electronics industry. More than half of this workforce has education levels below the 12th standard and hence, appropriate training is required to develop specific skill sets to ensure productivity, it added.
TeamLease Services further identified high-demand temporary roles, including in-store promoters, service technicians, supervisors, sales trainers, channel sales executives, customer support executives, warehouse in-charge, tele support executives, and electronics engineers, as pivotal to the consumer durables and electronics industry’s growth. Among the various segments in the industry (including small appliances like kitchen appliances, LED lights, and electric fans to large appliances such as ACs, refrigerators, and washing machines—and consumer electronics including TVs, mobile phones, computing devices, and digital cameras), AC market is projected to reach $5.8 billion by 2028 with a CAGR of 15 per cent, while the mobile phone market is estimated to reach $61.2 billion by 2028, growing at a CAGR of 6.7 per cent.
Metros, the report said, experience the highest attrition rate at 71 per cent, while tier-II and -III cities have comparatively lower rates and tier-I cities have the lowest attrition rate. In terms of temporary workforce employment, its primarily concentrated in the South region. Tamil Nadu, Karnataka, Maharashtra, Uttar Pradesh, and Telangana are the top five states experiencing the highest growth in temporary jobs. At the city level, Bengaluru, Hyderabad, Chennai, Kolkata, and Mumbai drive temporary job growth. Now, in terms of compensation, TeamLease Services added that the highest yearly CTCs are in metro cities and highest average monthly incentives are in tier-II cities.
Kartik Narayan, CEO of Staffing, TeamLease Services Limited, said, “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. Our report provides actionable insights to help businesses optimize staffing strategies and enhance operational efficiency, paving the way for a brighter future.”
From: financialexpress
Financial News
