Male employees comprise over 90% of outsourced workforce in FMCG sector: Report

NEW DELHI: Mumbai, Bangalore, Chennai, Delhi, and Hyderabad are the top five cities with the strong intent to hire in the Fast-Moving Consumer Goods (FMCG) sector, as per a report from TeamLease Services. The report found a significant gender disparity in the FMCG workforce, with male associates comprising over 90% of the outsourced workforce.

There has been a significant increase in new hiring for sales, marketing, and Information Technology (IT), along with office services, human resources, and blue-collar job roles, according to the report.

According to the TeamLease report, metro cities have the highest attrition rates (27%), followed by Tier 1 and 2 cities (26%). People in Tier 3 and 4 cities have comparatively lower attrition rates reflecting relatively lower levels of demand in rural markets. Attrition is defined as departure of employees from the organization in the form of resignation, termination.

Attrition rate, reasons

The report highlights that the average age of active employees in the FMCG sector is over 36 and that of the attrited ones is nearly 34. This indicates that younger employees tend to leave the companies more. Correspondingly, the tenures of active and attrited associates is 1.7 and 1.1 years respectively.

Attrition has been categorized into two distinct types: 'regrettable' and 'non-regrettable'. Regrettable attrition, accounting for 21% of departures, involves employees whose exceptional performance resulted in incentive earnings that exceeded the company's average incentives.

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On the other hand, non-regrettable attrition, which represents 39% of the attrition rate, occurs in cases where employees do not earn any incentives, the report found.

Teamlease Services report also revealed that the average CTC for current and attrited associates is highest in southern India. Also, while the gap between the salaries of active and attrited associates is negligible, the gap in incentives earned by them is significant. This indicates that incentives are a much stronger predictor of attrition rather than salaries, TeamLease said.