Amidst the economic slowdown due to lack of consumption, mass layoffs have been making headlines time and again, especially in the automobile sector, which is adding to India’s unemployment rate. Temporary employees are the first to get impacted by lay-off drives.
Indian automobile industry is one of the worst hit when it comes to job cuts. Reuters reported that initial estimates suggests that automakers, part manufacturers and dealers have laid off about 350K workers since April.
Despite the slow down, the fast consumer goods and services industries will be trying to aggressively push its sales, especially during the upcoming festive season, which starts off around late September. For many companies, especially those in fast-moving ecommerce and retail businesses, sales at this time of the year go up by 60% compared to the annual sales.
The demands for temporary staffers picks up from Onam festival in Kerala and lasts up to New Year’s Eve. The companies are on the go to expand their workforce to make the most out of it. Staffing firms like Quess, TeamLease Services, Manpower, Kelly Services and CIEL HR services expect a 10-20% rise in temporary hiring.
This demand for temporary hiring is not just limited to ecommerce websites such as Flipkart and Amazon, which make hay during the festive season. Service providers such as Swiggy and UrbanClap have also increased their hiring. Banking, financial services and insurance (BFSI) like HDFC Bank, Axis Bank and Bajaj Finserv will also be upping their hiring to push more products that help fuel this appetite for online shopping.
Last year alone, 1.2 Lakh temporary warehousing employees were required to manage operations at Walmart-backed Flipkart and Amazon India. Rituparna Chakraborthy, cofounder of TeamLease Services, told Economic Times that the high demand for people in customer service, logistics and sales is pushing more n graduates to these fields. “Undergraduates or graduates with good communication skills will be fit for sales jobs, delivery and food technology.”
Most industries have turned to temp hiring agencies to recruit for special products, saving them the time and cost of hiring process. This also helps with even distribution of work, creating a healthier working environment for permanent employees.
Over the last few years, temporary staffing industry, also known as gig economy at times, has grown significantly. With evolving market and changes in consumer behavior, temporary hiring is emerging as a key hiring tactics for firms. Fixed term employment also helps global players to withstand any economic crisis, and cut costs temporarily, and in other cases, it helps manage fluctuating talent demands.