Bengaluru: The contractual employees in the Indian manufacturing sector saw their compensation packages grow at a 5.9 per cent compound annual growth rate (CAGR) from FY21 to FY24, according to a report on Monday.
This growth was driven by inflation, increased demand for skilled workers, and the need for competitive pay to retain talent, according to the report by TeamLease Services, India’s leading staffing solutions company.
Moreover, the sector’s workforce is predominantly young, with most individuals in the 28-37 age group (43.6 per cent).
The expansion of the manufacturing sector in the country is led by industries like electronics manufacturing, automotive, textiles, and chemicals.
“To unlock its potential, the sector must prioritise inclusive policies and invest in upskilling for Industry 4.0. Strategic workforce outsourcing can help reduce costs and address operational inefficiencies,” said Subburathinam P, Chief Operating Officer of TeamLease Staffing.
“By focusing on retention and adaptability, the sector can not only achieve its $1 trillion valuation goal but also set a global standard for sustainable and equitable industrial growth,” he noted.
As the manufacturing sector aims to achieve a $1 trillion valuation by 2025-26, addressing workforce dynamics will be pivotal in ensuring sustained growth.
This growth is led by strategic government initiatives, technological advancements, and an evolving workforce landscape.
The workforce is also diverse in terms of educational backgrounds, with nearly half being graduates.
Both genders show the highest representation at the graduation level, 48.5 per cent for males and 46.4 per cent for females.
Meanwhile, Maharashtra (17.2 per cent) and Tamil Nadu (14.6 per cent) are the leading states in contractual workforce contributions, followed by Uttar Pradesh (9.6 per cent) and Karnataka (9.4 per cent), the report mentioned.
“A significant 89.5 per cent of employees in temporary roles are male, highlighting a significant underrepresentation of women. Females in the workforce, however, demonstrate higher representation in postgraduate qualifications (24.3 per cent compared to 10.5 per cent of males),” it noted.
The report highlighted that companies are encouraged to enhance workplace safety, foster inclusivity, and invest in career development initiatives such as structured mentorship programmes.
(IANS)
