Employee attrition remains a big challenge in durable consumer market
According to a report by staffing company TeamLease Services, employee attrition remains a significant challenge for employers in the consumer durables and electronics sector, with the cost of attrition to an organization with 1000 employees being approximately Rs 3.64 crore.
ANI
Jun 01, 2024 15:02 IST
New Delhi [India], June 1 (ANI): Amid talks of joblessness or no jobs, employee attrition remains a big challenge for India's consumer market. Employees are consistently searching for opportunities in the consumer durable and electronics sector as revealed by a report.
According to a report by staffing company TeamLease Services, employee attrition remains a significant challenge for employers in the consumer durables and electronics sector, with the cost of attrition to an organization with 1000 employees being approximately Rs 3.64 crore.
The attrition rate in the metro cities stood at 71 per cent. Tier 2 and 3 cities have comparatively lower attrition rates of 66 per cent.
India has a 590 million workforce working in the consumer electronics sector. The share of formal employment accounts for 13.6 per cent of the total employment while the organised sector accounts for 18.9 per cent and 81.1 per cent of people in the unorganised sector.
Out of 590 million, 5.4 million is the total formal temporary workforce that has grown at a CAGR of 10.4 per cent in the last five years.
The sector is characterised by a low level of education as half of the workforce has education below the 12th standard, highlighting the need for training for the employees.
The size of the consumer durables market in 2024 amounts to USD 34.7 billion, and is estimated to reach USD 45.6 billion by 2028 with a CAGR of 7.1 per cent.
The consumer electronics market in 2024 was at USD 79.7 billion and is estimated to reach USD 108.8 billion by 2028 with a CAGR of 8.1 per cent.
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.
Highlighting the issue of attrition in the organisations, Balasubramanian A, Senior Vice President at TeamLease Services, emphasized, "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. We must reimagine talent management strategies to attract, nurture, and retain temporary workforce."
Kartik Narayan, CEO of Staffing, TeamLease Services Limited, highlighted, "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 cements its position as the world's fastest-growing major economy, the report anticipates the nation becoming the third-largest consumer market by 2027. (ANI)
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