MUMBAI: As many top brands, both domestic and global, are expanding deeper into the country, industry experts believe this is unlikely to lead to an increase in job opportunities in the retail sector in smaller cities.
Experts also noted that there exists a significant pool of untapped talent to cater to retail expansion in smaller cities.
“We estimate that around 25,000-30,000 permanent and temporary jobs will be created in the retail sector over the next 12-18 months, and this number will grow gradually on an annual basis. Interestingly, the demand for jobs in the retail sector is increasing Sanjay Shetty, director, Professional Talent Solutions, Randstad India, said job applications have increased by 18-20 percent in the last 12 months.Additionally, he said, with the entry of major domestic and international retail brands including apparel, F&B, FMCG into tier-II and III cities, there is increasing attraction for non-metro areas among retailers, which will lead to employment generation. indicates adequate capacity. In these areas.
“With companies increasingly setting up operations in smaller Tier II and Tier II cities, there is a significant pool of untapped talent ready to meet retail expansion. Previously, most retail jobs were concentrated in metros, leading to a decline in Tier II and Tier II cities. There was a migration of talent from the city in search of employment opportunities,” Shetty said.
As retail development is booming and domestic and international brands are expanding their reach in non-metro cities, there is an increasing emphasis on skill development and training programs to effectively utilize local talent, he said.“This shift not only reduces the pressure on metro cities, but also promotes economic growth and development in tier II and III cities by providing employment opportunities closer to home for the local population. This will allow talent to migrate to their hometowns. This will enable them to enjoy personal and financial benefits, as the cost of living is often much lower in these smaller cities,” he said.
Balasubramaniam A, VP and business head, staffing, TeamLease Services, said the retail sector accounts for about 10 per cent of India's GDP and 8 per cent of its workforce (6 crore).
“The total employment generation over the next one year is expected to be 4 crore, and given that e-commerce is expected to grow at a fast pace, it is expected to make a significant contribution to incremental employment generation next year.“This decade will also mark the period when rural consumption will exceed 50 per cent for the first time, hence, tier II and III cities will have the highest share in incremental job creation in the retail sector.” However, he said, even if reverse migration There is a possibility, the attraction of higher salaries may still be strong in metros.
“Better job opportunities and better quality of life in smaller cities may encourage some people to move back. However, our internal data shows that salaries in smaller cities are anywhere 10-30 per cent lower than in metros. While this difference is expected to come." Below, it is unlikely to reach parity in the near future,” he said.Aditya Narayan Mishra, MD & CEO, CIEL HR Services, said that during the pandemic many people moved to their hometowns and realized that the cost of living there is much lower compared to metro cities. The mindset of people has changed during that phase. And people are more open to moving and working in tier II and III cities, he said, adding that this will also benefit fresh graduates based in smaller places.
“With increasing job prospects, lower cost of living and desire for a better work-life balance, people are more likely to come back to their hometowns if they get good job prospects,” Mishra said.
Although there is a notable difference between salaries in Tier I and II cities and the cost of living there is significantly lower than in bigger cities, he said that “retail brands can analyze and offer competitive compensation packages customized as per local market conditions.” can do." Attract and retain top talent”.Additionally, Mishra said inadequate public transportation infrastructure in smaller cities can present challenges for women wanting to join the workforce.
“However, with the potential migration of companies to Tier II and Tier II locations, transportation options are expected to increase, thereby reducing this disruption. To overcome these challenges, retail brands are looking to implement flexible work arrangements. And inclusivity should be prioritized by offering transportation incentives,” he said.Added.
Experts also noted that there exists a significant pool of untapped talent to cater to retail expansion in smaller cities.
“We estimate that around 25,000-30,000 permanent and temporary jobs will be created in the retail sector over the next 12-18 months, and this number will grow gradually on an annual basis. Interestingly, the demand for jobs in the retail sector is increasing Sanjay Shetty, director, Professional Talent Solutions, Randstad India, said job applications have increased by 18-20 percent in the last 12 months.Additionally, he said, with the entry of major domestic and international retail brands including apparel, F&B, FMCG into tier-II and III cities, there is increasing attraction for non-metro areas among retailers, which will lead to employment generation. indicates adequate capacity. In these areas.
“With companies increasingly setting up operations in smaller Tier II and Tier II cities, there is a significant pool of untapped talent ready to meet retail expansion. Previously, most retail jobs were concentrated in metros, leading to a decline in Tier II and Tier II cities. There was a migration of talent from the city in search of employment opportunities,” Shetty said.
As retail development is booming and domestic and international brands are expanding their reach in non-metro cities, there is an increasing emphasis on skill development and training programs to effectively utilize local talent, he said.“This shift not only reduces the pressure on metro cities, but also promotes economic growth and development in tier II and III cities by providing employment opportunities closer to home for the local population. This will allow talent to migrate to their hometowns. This will enable them to enjoy personal and financial benefits, as the cost of living is often much lower in these smaller cities,” he said.
Balasubramaniam A, VP and business head, staffing, TeamLease Services, said the retail sector accounts for about 10 per cent of India's GDP and 8 per cent of its workforce (6 crore).
“The total employment generation over the next one year is expected to be 4 crore, and given that e-commerce is expected to grow at a fast pace, it is expected to make a significant contribution to incremental employment generation next year.“This decade will also mark the period when rural consumption will exceed 50 per cent for the first time, hence, tier II and III cities will have the highest share in incremental job creation in the retail sector.” However, he said, even if reverse migration There is a possibility, the attraction of higher salaries may still be strong in metros.
“Better job opportunities and better quality of life in smaller cities may encourage some people to move back. However, our internal data shows that salaries in smaller cities are anywhere 10-30 per cent lower than in metros. While this difference is expected to come." Below, it is unlikely to reach parity in the near future,” he said.Aditya Narayan Mishra, MD & CEO, CIEL HR Services, said that during the pandemic many people moved to their hometowns and realized that the cost of living there is much lower compared to metro cities. The mindset of people has changed during that phase. And people are more open to moving and working in tier II and III cities, he said, adding that this will also benefit fresh graduates based in smaller places.
“With increasing job prospects, lower cost of living and desire for a better work-life balance, people are more likely to come back to their hometowns if they get good job prospects,” Mishra said.
Although there is a notable difference between salaries in Tier I and II cities and the cost of living there is significantly lower than in bigger cities, he said that “retail brands can analyze and offer competitive compensation packages customized as per local market conditions.” can do." Attract and retain top talent”.Additionally, Mishra said inadequate public transportation infrastructure in smaller cities can present challenges for women wanting to join the workforce.
“However, with the potential migration of companies to Tier II and Tier II locations, transportation options are expected to increase, thereby reducing this disruption. To overcome these challenges, retail brands are looking to implement flexible work arrangements. And inclusivity should be prioritized by offering transportation incentives,” he said.Added.
