Mumbai/New Delhi: Retailers and logistics service providers are struggling to strike a balance between hiring contract workers to maximize festive season sales and reducing costs, amid efforts to boost last-mile connectivity after two quarters of muted sales.
While firms are rolling out marginal hikes for their sales teams, recruiters said they are seeking to hire contract workers at minimum wages. Therefore, getting manpower across states is becoming a challenge, they added.
“The first two quarters were challenging due to unseasonal rainfall. Consumer electronic firms are now asking for additional budget from the finance teams to hire sales workforce for the festivities,” Kartik Narayan, chief executive-staffing, TeamLease Services, said.
Many companies are holding back quarterly bonus payments of sales executives for September-November, planning to pay only in December, said industry insider.
As companies focus on cost control, retail stores are incentivising staff with rewards such as gold coins, travel vouchers, and cash bonus to encourage them to achieve sales targets.
The festive season, running from September to December, intensifies the battle between traditional brick-and-mortar stores and online platforms as they vie for a larger share of sales via discounted offerings.
However, manpower shortage has been a pressing issue, since the pandemic when offline stores were temporarily closed. “The next couple of months, companies want to up hirings but getting manpower to move is becoming a challenge on the back of cost and inflation pressure,” said Alok Kumar, president of recruitment firm Manpower India. Contract staffers will be hired at minimal wages as companies face a crunch to offer more, he added.
Companies such as Reliance Industries Ltd (RIL) saw a rise in voluntary separation in its retail and telecom subsidiaries. Attrition rate rose 64.8% over 2022-23, according to the group’s annual reports.
Mint has learnt that sales teams in some of the retail businesses of RIL, have received hikes ahead of the festive season, and others are expected to get it in the coming weeks. RIL did not respond to Mint’s queries.
Some firms are tapping into small towns for talent on their own. Fashion e-tailer Myntra, for instance, is tapping into the pool of temps from rural parts of Haryana, Telangana, West Bengal and Karnataka to meet demand for the festive season.
As part of hiring a ramp-up, Myntra will have more women in its sales teams by up to 20% over last year, and 45% overall including verticals such as supply chain as well as contact centres for the festivities. “Our preparation for the Big Fashion Festival is in full swing to cater to high demand from customers waiting to shop on Myntra for their festive purchases,” said Nupur Nagpal, CHRO, Myntra.
Myntra is also offering perks for its key sales occasions, such as bonuses, special rewards for performance, late-night transport and rest room facilities as well as period leave for teams.
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Updated: 30 Sep 2023, 12:31 AM IST