E-commerce hiring expected to surge by 32% in 2022: TeamLease survey

Hiring across India’s e-commerce industry is expected to pick up pace in 2022 as the sector continues to see strong growth momentum due to the shift in customers’ shopping behaviour to buying online. A survey by TeamLease Services has found that the industry witnessed a 28 per cent increase in hiring activity in 2021 and is likely to see 32 per cent year-on-year (YoY) growth in 2022, with demand for various kind of contractual/ flexible workers likely to be the highest.

India’s leading e-tailers like Amazon, Flipkart already stepped up hiring in the face of increased demand for online shopping during the pandemic, and announced recruitment of thousands of contractual workers during the three-months long festive season period.

In its report, TeamLease said that the e-commerce sector grew by 8 per cent in 2020 and 30 per cent in 2021. It is now poised to reach $111 billion by 2024 and $200 billion by 2026. E-commerce and the allied sectors are expected to clock $80 billion sales in 2022, while the industry is projected to exceed 300-350 million shoppers by 2026. All of this has provided the much-needed impetus to the economy and created a multitude of employment opportunities, as per the survey.

In terms of employment opportunities, the survey noted that there was a 28 per cent surge in e-commerce and allied industries (e-commerce, social commerce, online grocery/essentials) in 2021. In fact, December quarter witnessed 57 per cent employers in the e-commerce and tech start-up segment keen to hire more.

Over the year, the demand was high for roles like supply chain management, warehouse roles (delivery executives, movers, pickers, packers, loaders etc.), support services and customer service management. Majority of hiring was concentrated in cities like Ahmedabad, Chennai, Coimbatore, Chandigarh, Delhi, Gurugram, Hyderabad. Indore, Jaipur, Kolkata, Kochi, Lucknow, Ludhiana, Pune, Vizag, Mumbai and Noida, the report stated.

Hiring has particularly shot up in tier II-IV regions, with e-commerce platforms building up their shopper base from these regions.

From a location perspective, the last quarter saw Kolkata and Gurgaon as the top regions for employment in the sector, while in terms of roles, sales and office services stood out, as per the survey.

The employees have seen a substantial 20-30 per cent pay hike across the sector with companies introducing unique benefits and compensations, including relaxation in attendance policies, providing flexibility in schedule changes, implementing additional sick leave and exploring back-up childcare options for employees

“With the aggressive vaccination drive pan India and economic activities gaining normalcy, next year is going to be very optimistic. Hiring activities have resumed in most of the industries, even the ones which faced maximum impact last year. For e-commerce and start-ups, which has been rewarding throughout, many new job opportunities will be added in 2022 and hiring will further go up by 32 per cent,” Ajoy Thomas, VP & Business Head (Retail, E-Commerce, Logistics & Transportation), TeamLease Services, said in a statement.

“Major locations where hiring will be maximum are Chennai, Coimbatore, Chandigarh, Delhi, Gurugram, Hyderabad. Indore, Jaipur, Kolkata, and the roles for which companies will seek out skilled talent are operations, customer service, technology, machine learning, applied sciences, support functions, supply chain management, warehouse roles (delivery executives, movers, pickers, packers, loaders etc.,” he added.

The report also highlighted the significance of including flexible workers and gig workers under the regulatory framework for their social and financial security, especially since the workforce is increasing rapidly as e-commerce industry in India scales up.

In the coming year, especially during the next Budget, the government should recognise and support new business models in both product and service segments, aimed at improving consumer experience and providing gainful employment to regular and gig workers with improved earnings, the report said.

Additionally much clarity is also required with regard to the current e-commerce policies. From a policy perspective, reforms should not be stifled with red tape, bureaucratic rigmarole and avoidable policy restrictions. All of this will help boost further growth in the segment, it added.