The demand for more workers is mainly from places such as Panipat, Varanasi, Asansol, Dhanbad, Guwahati, Raipur, Nagpur, Jaipur, Patna, Salem, Calicut, Coimbatore, Vizag, Cuttack, Guntur, Nellore and Madurai, as large Indian companies and multinationals look to expand their network amid a rise in demand for air-conditioners, coolers, refrigerators, fans and inverters in tier 2 and 3 regions.
“We have seen a 25-30% increase in demand for sales and service personnel in the smaller towns versus a year ago,” said Balasubramanian A, vice president and head of consumer and ecommerce at staffing firm TeamLease. “This is higher than a 15-20% increase in demand witnessed in the metro cities.”
Alok Kumar, ManpowerGroup India’s president-manpower, said, “We have an uptick of around 25% in demand from consumer durable industry compared to last year…Demand from smaller cities is higher than metro cities by at least 15%.”
Kumar said that with improved supply chain and distribution networks, major Indian companies and MNCs are looking to extend their offerings beyond the metro cities and establish their foothold in tier-2 or smaller cities. “And to run their operations smoothly, they are in need of talent who should be available locally,” he said.
In demand are entry-to-junior-level job roles like sales promoters, merchandisers, showroom managers, channel sales executives, customer support executives, warehouse in-charge and tele support executives.“Tier 2 and 3 towns have emerged as the fastest-growing segments in terms of consumer demand for cooling appliances amid a significant gain in momentum of organised channel,” said Anand Ramanathan, partner, consumer products and retail sector leader, Deloitte India.Penetration of ecommerce is also a big factor for the rising demand in small towns, he said. “There is a lot of demand for service personnel and, hence, the rising demand for temp manpower.”
About 40% of the sales of leading ecommerce platforms come from consumer durables and electronics. In this segment, seven out of ten consumers on marketplaces such as Amazon and Flipkart are from tier 2 places and beyond. In terms of value, six out of ten rupees spent on these platforms come from beyond the metros, said Ramanathan.
The experts also attribute the surge in demand for manpower in smaller towns to more disposable income, easier financing options, and the aspiration for better living, especially among the young.
“The foray of organised retail into tier 2 and 3 towns, rising aspirations and multiple options to finance purchase means companies need more manpower,” said Balasubramanian.
That apart, a lot of demand is also due to the expansion of offices into tier 2 and 3 locations.
“Many GCCs (global capability centres), for instance, are shifting to tier 2 and 3 cities, which is also leading to a lot of reverse migration of population from metros,” said Ramanathan. “As more people are employed, demand also goes up.”