R ARIVANANTHAM
CHENNAI, NOV 22
Preference for flexi staffing format gains momentum among the young workforce for the past few years, especially after the Covid-19 pandemic, says a report from the Indian Staffing Federation, an umbrella organization for about 120 manpower agencies spread across the nation, said its Executive Director Suchita Dutta here on Wednesday.
- Currently 4.74 million flexi workers across India and TN have 0.44 million flexi workforce which is 10% in country: Suchita Dutta
- The industry experienced a notable 5.6 % surge in growth during April-June 2023 (Q1 FY 2024) compared to January-March 2023 (Q4 FY2023)
- In the last few years there has been a significant 10% shift in flexi workforce in the age bracket of 25-30 years
Addressing the media, Dutta said, “The gender specific data shows that the flexi workforce displays impressive diversity within the flexi workforce, where women consistently contribute to a 25% participation. Currently 4.74 million flexi workers across India and TN have 0.44 million flexi workforce which is 10% in country. A striking demographic pattern that unfolds, with the age group of 25-30 years takes the lead at a solid 51%. It’s a testament to the vibrant and inclusive nature of flexi employment, providing opportunities for everyone.”
Explaining in detail on the latest Flexi Employment Social Impact report of the Indian Staffing Federation (ISF), she said that the report revealed employment practices that are driving positive social change through the formal staffing companies, leaving an impact at the grassroots level. The report also delves into essential employment parameters, celebrates demographic diversity, explores the ever-evolving employment preferences, and spotlights opportunities for Fresher, Women, and Low-skilled Workers.
She said, the first quarter of 2023-24, Flexi Staffing Employment Growth report, ISF presented data on the staffing industry, highlighting a year-on-year growth rate of 12.5% for the period spanning July 2022 to June 2023 (comparing Q1FY24 to Q1FY23). During April-June 2023 (Q1 FY 2024), the staffing industry experienced a notable 5.6% surge in growth compared to January-March 2023 (Q4 FY2023). This underscores a strong demand for flexible (contract) workforce solutions in the market. The surge in employment was particularly notable in key sectors such as Ecommerce, Logistics, Manufacturing, Healthcare, FMCG, Energy, Retail and Banking. The report also brought to light the sharp drop in IT Staffing in India at -9.5% YoY. General Flexi Staffing (i.e. excluding IT Flexi Staffing) contributed with new employment growth at 6.1% growth in Q124 (April-June 2023), she added.
- A remarkable adoption change in employment trend with +5% year-on-year growth in comparison to other employment formats.
- An impressive 80% of flexi workers express contentment with their employment situation, affirming the appeal of this work arrangement.
- A substantial 63% express a strong desire to continue as flexi employees, indicating their contentment with the formal staffing industry and opportunities it offers.
- A significant 19% of flexi workforce get their ‘first stepping stone’ through formal staffing companies to join the permanent employment.
- An impressive 38% received training and upskilling, greatly enhancing their career prospects and employability.
- Remarkable year-on-year increase of +8% in contracts extending beyond 12 months, a compelling testament to the growing trust in the flexi employment model.
- There’s a significant growth witnessed as flexi workforce gain higher skills during their employment through staffing companies, with at least +5% move upward in their career YoY.
- Staffing companies have brought opportunities for freshers with over 17% joining workforce. There is an increasing demand for graduates and technical skills in the job market creating even more opportunities compared to the previous year.
Expressing optimism Lohit Bhatia, President, Indian Staffing Federation in a statement said, “The growing trust in the flexible employment model underscores the positive perception and reliability that come with this format of employment, providing social security, continual employment opportunities, and upskilling for a significant number of workers. The increasing adoption and use of flexible staffing solutions by both employers and employees underscore its effectiveness in meeting the ever-evolving needs of today’s labor market. Considering this fact, ISF is actively exploring partnerships with staffing companies in Chennai that will be supportive of the state government’s initiatives aimed at extending LWF benefits to employees and revising the rate of labor welfare fund contribution in order to enhance the overall welfare measures for workers.”
Sharing his views on the flexi staffing industry, Pramod Pachisia, Vice President, Indian Staffing Federation mentions, “In the last few years there has been a significant 10% shift in flexi workforce in the age bracket of 25-30 years. This clearly indicates that the trend has changed with the youth opting for the flexi employment format. This diversification across different age groups vividly underscores the widespread appeal and accessibility of this employment model, catering to individuals at various stages of their careers.”
For details visit – https://www.indianstaffingfederation.org/
