Demand for frontline workers continues to remain strong in India at 3.9mn jobs in H1FY24 despite ongoing macroeconomic headwinds as per BetterPlace’s Year-End Insights Report. This report is an analysis of over a million data points on the BetterPlace platform.
Commenting on these insights, Pravin Agarwala, Co-founder and Group CEO at BetterPlace said, “The trend of variabilisation of work that we predicted is becoming stronger by the day. Our workforce trends indicate a gradual shift away from traditional sectors towards gig-sectors. Notably, sectors like IFM&IT and Logistics & Mobility have undergone a significant transformation; previously marked by high attrition, there seems to be a normalisation with fewer individuals leaving their gig jobs due to increased earning potential. Another encouraging observation is the surge in demand and salaries for manufacturing jobs, underscoring the promising outlook for India’s economy despite global macroeconomic challenges. The future of work in India appears very promising and is expected to evolve further in the coming years. To be well-prepared, both employers and employees should quickly adopt technology and platforms to not only become dynamic in their processes, but also seamlessly achieve scale.”
Some key insights from the report include:
- The demand for 3.9 million jobs in H1FY24 was notable, with Logistics and Mobility accounting for over 50% of the total demand.
– E-commerce and IFM&IT were the second and third highest contributors to the overall demand at 27% and 13.7% respectively
– Sectors which contributed least to the overall demand included BFSI at 0.87% and Retail & QSR at 1.96% - IFM&IT experienced the most significant decline in attrition rates, plummeting by 20.9% between H1FY23 and H1FY24.
– This is largely because IFM&IT contributed to the third highest demand for frontline workers, offering higher salaries which led to higher attrition among workers who were looking for a better paying opportunity in H1FY23
– Logistics & Mobility saw the second highest drop in attrition at 12.9% largely because salaries in this sector has stabilised while the demand continues to be high
– On the other hand, BFSI saw the highest attrition rate between H1FY23 and H1FY24, rising by 28%, followed closely by Retail & QSR at 19.3%. This can be attributed to the churn the BFSI sector is experiencing due to dynamic regulatory environment and the direct impact of inflation on the retail sector - IFM&IT recorded the highest decrease in salaries, experiencing a decline of 20.3% between H1FY23 and H1FY24.
– Manufacturing saw the highest spike in salaries, increasing by 19.6% from INR 18800 in H1FY23 to INR 22500 in H1FY24. This is largely a result of high growth in the manufacturing sector driven by government initiatives
– Retail & QSR saw the second highest spike in salaries, growing by 15% between H1FY23 and H1FY24. This can be attributed to the high levels of attrition that is being seen in the sector
– IFM&IT might be going through a normalisation phase where there was a high demand and thus, high salaries for workers in the first half of the last financial year which has fallen this year. Given the reduced attrition rates in the sector, enterprises are finding less necessity to raise salaries. Whereas ecommerce saw the second largest drop in salaries at 14.9% largely because low consumption during off season through these platforms
