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Hectic jobs in retail and quick service restaurants is leading to high attrition: Report

  • Retail, QSR and banking, financial services and insurance sectors were the top three industries with the highest attrition rates of frontline workers.
  • The sector which saw the second highest rate of attrition is e-commerce, followed by banking and insurance sectors.
  • In FY22, around eight million frontline jobs were created in India with the highest contribution coming from the e-commerce sector.

Retail and quick service restaurants have the highest rate of attrition in terms of frontline workers, according to a report by BetterPlace.

The monthly attrition rate for these sectors stood at 19% in FY22 – which means every month around a fifth of their employees are quitting.

“These industries have also witnessed a huge surge in demand for their products and services during and post the pandemic. Since the demand is huge and processing times lean, they require workers in large numbers. The hectic nature of jobs and easy replaceability of workers can be the two major reasons why attrition is high in these industries,” said the report.

The sector with the second highest attrition rate is ecommerce. That’s followed by banking and financial services and logistics and mobility. Facility management and IT together have had an attrition rate of 10% and it also ties with the manufacturing sector.

Attrition rate, also known as churn rate, is the number of people who have left the company, divided by the average number of employees over a period of time.

Sector Attrition rate
Retail and QSR 19%
E-commerce 15%
BFSI 13%
Logistics and mobility 12%
IFM and IT 10%
Manufacturing 10%
Others 8%

Source: BetterPlace report

According to Retailers Association of India, the retail sector employs over 45 million people. Over 5 million employees left their jobs or lost their jobs during the pandemic in the retail sector and the sector has come a long way since then; as Indians resumed their love for shopping in the last two quarters.

The retail industry is bouncing back to pre-Covid levels and is currently on a hiring spree as large retail chains like Aditya Birla Fashion, Tata owned Trent, Shoppers Stop are expanding into smaller cities.

Sectors on a hiring spree due to high attrition

The report says that in FY22, around 8 million frontline jobs were created in India. E-commerce contributed the highest to these jobs, followed by logistics and mobility, according to the BetterPlace report.

As retail consumption rose after the pandemic, the second quarter in FY22 saw a huge rise in demand for frontline workers because of a rapid increase in jobs in the delivery and retail segments.

“India’s frontline workforce has been an essential cog in our economic machine, driving significant growth across sectors. As the economy is normalizing, we are seeing a resurgence in demand for frontline workforce and hence, the creation of jobs – eight million as per our data, and this will grow up to 50 million by the end of this decade,” said Pravin Agarwala, co-founder and group CEO at BetterPlace.

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