According to a TeamLease Services Report; Fast-Moving Consumer Goods (FMCG) sector, unveiling a wealth of transformative insights poised to reshape the industry landscape.
It identifies a significant gender disparity in the FMCG workforce, with male associates comprising over 90% of the outsourced workforce.
The report delineates hiring, attrition, and productivity (HAP) as the three vectors to optimize their people supply chain.
The report provides a list of effective approaches that organizations can adopt to improve their hiring process, reduce employee turnover, and boost productivity.
- These strategies include considering fresher hiring, utilizing psychometric assessments to improve candidate matching.
- Investing in co-pay models for learning and development programs that enable trainees to accelerate their career progression.
Mumbai, Bangalore, Chennai, Delhi, and Hyderabad are among the top five Indian cities that showcase a strong intent to hire in the FMCG sector. The report highlights a significant growth in new hiring for sales, marketing, and IT, along with office services, human resources, and blue-collar job roles.
The TeamLease Services report suggests embracing technology, innovation, and strategic collaborations while addressing regulatory complexities and consumer demands for sustained success in this dynamic market landscape.
At the same time, organizations must prioritize hiring, minimizing attrition, and enhancing workforce productivity to capitalize on emerging opportunities and navigate market uncertainties effectively.
According to the report, metros have the highest attrition rates (27%), followed by Tier 1 and 2 cities (26%). People in Tier 3 and 4 cities have lower attrition rates than those in metros, which is a reflection of the relatively lower level of demand in rural markets.
The report highlights that the average age of active associates is over 36 and that of the attrited ones is nearly 34. Indicating that younger employees tend to attrite more. Correspondingly, the tenures of active and attrited associates is 1.7 and 1.1 years respectively.
The report also categorizes attrition into two distinct types: ‘regrettable’ and ‘non-regrettable’.
- Regrettable attrition, accounting for 21% of departures, involves employees whose exceptional performance resulted in incentive earnings that exceeded the company’s average incentives.
- On the other hand, non-regrettable attrition, which represents 39% of the attrition rate, occurs in cases where employees do not earn any incentives.
Teamlease Services also reports that the average CTC for current and attrited associates is the highest in southern India.
Kartik Narayan, CEO of Staffing, TeamLease Services Limited, said, “The report unveils critical insights into the evolving landscape of India’s FMCG sector, offering stakeholders invaluable strategic guidance in navigating opportunities and challenges.”
Balasubramanian A, Vice President & Business Head of TeamLease Services Limited, said, “With top cities like Mumbai, Bangalore, Chennai, Delhi, and Hyderabad experiencing significant growth in intent to hire, the FMCG sector is poised for robust workforce expansion and talent acquisition.”
“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”, he added.
Notably, while the gap between the salaries of active and attrited associates is negligible, the gap in incentives earned is significant. This indicates that incentives are much stronger predictor of attrition rather than salaries, as salaries seem quite inelastic.
The report mentions the list of challenges:
- The industry also grapples with intensified competition in online retail, triggering price wars and escalating R&D costs for major players.
- Moreover, the sector faces the challenge of catering to a diverse demographic spectrum encompassing Gen X, millennials, and Gen Z, each with distinct preferences and priorities.
According to the report, efficient data management is of utmost importance in the FMCG sector. Companies in this industry possess extensive consumer data, which, when analyzed effectively, can provide valuable insights for driving innovation and improving customer engagement.
Additionally, maintaining a positive brand image is vital for achieving global success, requiring careful navigation of diverse regulatory standards in different markets.
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