Dear Friends,
I want to draw your attention towards the present scenario in the recruitments in the Retail sector.
This is an excerpt from one of the realty news websites -- India’s booming retail sector witnessed in the last two years appears to be cooling off, particularly at the middle and senior management levels. Recruitment firms suggest that the April-June quarter has seen a slowdown in hiring at senior levels as most retailers already have their middle and senior management in place, and the tepid hiring is seen continuing into the next quarter as well.
A report by a staffing company says that growth in retail sector hiring will be flattish in the coming months. “On the managerial side, we have already filled a major part of our requirements. Since the back-end is firmly in place, we do not need to add too many people. But we will continue to hire at the shop floor level as we are expanding rapidly,” Bijou Kurien, president, and chief executive (lifestyle), Reliance Retail, said. A mid-level employee would typically have between four and eight years of experience, and salaries could range between Rs 8 lakh and Rs 20 lakh. The retail sector is also expected to see some rationalization in salary levels. Increments this year are expected to hover around 10-15% compared to an average of 25% last year.
The retail sector is also in a cautious mood now because of the depressed macroeconomic environment and high rentals severely impacting consumer spending and growth plans, respectively. In fact, there is a ready pool of talent waiting to be absorbed as several small brands struggle to survive, and employees are restless to move from companies that have not been performing too well. Retailers agree that they are now getting more job applications than ever before and suggest that companies should now implement more aggressive retention strategies. The industry, however, will continue to see front-end jobs growing at a fast clip.
So, the consultants who are dealing with this industry - what's your take on this... as this is true and even I have heard from some reliable sources that a few names are on the verge of closure, and even many of the big names are almost hollow in terms of stocks and inventory.
I welcome the opinions of fellow consultants here...
Regards,
Deepali
From India, Delhi
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12I want to draw your attention towards the present scenario in the recruitments in the Retail sector.
This is an excerpt from one of the realty news websites -- India’s booming retail sector witnessed in the last two years appears to be cooling off, particularly at the middle and senior management levels. Recruitment firms suggest that the April-June quarter has seen a slowdown in hiring at senior levels as most retailers already have their middle and senior management in place, and the tepid hiring is seen continuing into the next quarter as well.
A report by a staffing company says that growth in retail sector hiring will be flattish in the coming months. “On the managerial side, we have already filled a major part of our requirements. Since the back-end is firmly in place, we do not need to add too many people. But we will continue to hire at the shop floor level as we are expanding rapidly,” Bijou Kurien, president, and chief executive (lifestyle), Reliance Retail, said. A mid-level employee would typically have between four and eight years of experience, and salaries could range between Rs 8 lakh and Rs 20 lakh. The retail sector is also expected to see some rationalization in salary levels. Increments this year are expected to hover around 10-15% compared to an average of 25% last year.
The retail sector is also in a cautious mood now because of the depressed macroeconomic environment and high rentals severely impacting consumer spending and growth plans, respectively. In fact, there is a ready pool of talent waiting to be absorbed as several small brands struggle to survive, and employees are restless to move from companies that have not been performing too well. Retailers agree that they are now getting more job applications than ever before and suggest that companies should now implement more aggressive retention strategies. The industry, however, will continue to see front-end jobs growing at a fast clip.
So, the consultants who are dealing with this industry - what's your take on this... as this is true and even I have heard from some reliable sources that a few names are on the verge of closure, and even many of the big names are almost hollow in terms of stocks and inventory.
I welcome the opinions of fellow consultants here...
Regards,
Deepali
From India, Delhi
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Hi!
Interesting topic. The Organized Retail segment is still quite young in India. It's obvious that the whole recession is having its impact on this segment too, and it's true that a few of the mid-sized players are moving out. But I see this industry growing because of the rich demand that is yet to touch the 2nd and 3rd tier cities. So, with that, I am sure the recruitments in this industry would also see a change in the coming months.
Though this industry has a direct impact on consumer spending behavior, which is making it feel the pinch, time will prove that it has a long way to go with a more positive outlook.
Thanks,
Manish
From India, Mumbai
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Interesting topic. The Organized Retail segment is still quite young in India. It's obvious that the whole recession is having its impact on this segment too, and it's true that a few of the mid-sized players are moving out. But I see this industry growing because of the rich demand that is yet to touch the 2nd and 3rd tier cities. So, with that, I am sure the recruitments in this industry would also see a change in the coming months.
Though this industry has a direct impact on consumer spending behavior, which is making it feel the pinch, time will prove that it has a long way to go with a more positive outlook.
Thanks,
Manish
From India, Mumbai
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Hi Manish,
Please check your private message. What you said is correct; consumer spending behavior is directly affected by financial changes. The recession has made an impact on the buying behavior of all social classes.
Similarly, the retail industry also has its share of losses because of this. Now, turning to recruitments, there is certainly a drop in average recruitments. However, companies are continuing with frontline recruitments, but on the other hand, middle and senior-level recruitments are definitely not on the cards. In fact, a few senior profiles have been axed from the company.
Any inputs?
Deepali
From India, Delhi
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Please check your private message. What you said is correct; consumer spending behavior is directly affected by financial changes. The recession has made an impact on the buying behavior of all social classes.
Similarly, the retail industry also has its share of losses because of this. Now, turning to recruitments, there is certainly a drop in average recruitments. However, companies are continuing with frontline recruitments, but on the other hand, middle and senior-level recruitments are definitely not on the cards. In fact, a few senior profiles have been axed from the company.
Any inputs?
Deepali
From India, Delhi
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Hi,
Thank you for the reply. I guess you are right that middle and senior-level recruitments have taken a toll in the retail industry. However, this is because these recruitments are done with future prospects in mind. Due to the low morale in the retail industry, caution has been exercised, and roles are being carefully considered to avoid duplication. The retail industry does not require many senior-level professionals, hence the impact is greater. On the other hand, junior-level recruitments, such as shop floor positions, seem to be ongoing. In fact, the retail industry is benefiting from a good pool of individuals returning from the Gulf region, which has a strong retail presence traditionally.
Let me know your views.
Thanks,
Manish
From India, Mumbai
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Thank you for the reply. I guess you are right that middle and senior-level recruitments have taken a toll in the retail industry. However, this is because these recruitments are done with future prospects in mind. Due to the low morale in the retail industry, caution has been exercised, and roles are being carefully considered to avoid duplication. The retail industry does not require many senior-level professionals, hence the impact is greater. On the other hand, junior-level recruitments, such as shop floor positions, seem to be ongoing. In fact, the retail industry is benefiting from a good pool of individuals returning from the Gulf region, which has a strong retail presence traditionally.
Let me know your views.
Thanks,
Manish
From India, Mumbai
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Hi Manish,
Thanks for your reply.
I agree with what you said that this industry does not require a lot of senior-level professionals. If we look at our local outlets like Reliance, Subhiksha, Sabka Bazaar, etc., we hardly find senior staff there. Most of the employees are customer care executives or cashiers, right? This seems to be the case with all small stores, whether they are in groceries, footwear, apparel, etc.
On the other hand, if we look at outlets in consumer durables and telecommunications, we can see some senior individuals, mainly due to the technical aspects of the products. These senior employees tend to be more knowledgeable than the frontline staff in small stores. They handle negotiations, warranty, and guarantee issues, which require expertise and experience, leading to higher salaries. I believe this is the cadre where the retail industry is focusing on continuous recruitment, considering the higher attrition rate.
What do you think?
I encourage individuals from the retail industry to share their opinions and insights here.
From India, Delhi
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Thanks for your reply.
I agree with what you said that this industry does not require a lot of senior-level professionals. If we look at our local outlets like Reliance, Subhiksha, Sabka Bazaar, etc., we hardly find senior staff there. Most of the employees are customer care executives or cashiers, right? This seems to be the case with all small stores, whether they are in groceries, footwear, apparel, etc.
On the other hand, if we look at outlets in consumer durables and telecommunications, we can see some senior individuals, mainly due to the technical aspects of the products. These senior employees tend to be more knowledgeable than the frontline staff in small stores. They handle negotiations, warranty, and guarantee issues, which require expertise and experience, leading to higher salaries. I believe this is the cadre where the retail industry is focusing on continuous recruitment, considering the higher attrition rate.
What do you think?
I encourage individuals from the retail industry to share their opinions and insights here.
From India, Delhi
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