FMCG companies should focus on increased hiring, retention, and productivity to seize new opportunities amid uncertainties: Report

Staffing conglomerate TeamLease Services has released a report on the country’s Fast-Moving Consumer Goods (FMCG) sector, revealing a significant gender disparity in the FMCG workforce, with male associates comprising over 90 per cent of the outsourced workforce.

The report also states that Mumbai, Bangalore, Chennai, Delhi, and Hyderabad are among the top five Indian cities that showcase a strong intent to hire in the FMCG sector. And it highlights a significant growth in new hiring for sales, marketing, and IT, along with office services, human resources, and blue-collar job roles.

According to the report, metros have the highest attrition rates (27 per cent), followed by Tier 1 and 2 cities (26 per cent). 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 per cent 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 per cent 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. 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 a much stronger predictor of attrition rather than salaries, as salaries seem quite inelastic. 

Talking about the report, 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. From harnessing technology and innovation to addressing workforce dynamics, organizations must embrace agility and foresight to thrive in this dynamic market environment.” 

Balasubramanian A, Vice President & Business Head of TeamLease Services Limited, stated, "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. This trend signals a positive outlook for industry players looking to capitalize on emerging opportunities and scale operations effectively.”