Number of informal workers expected to decline in India
A rising number of businesses in India hiring informal workers are moving towards formalising their workforce.
Companies in sectors like Fast Moving Consumer Goods (FMCG), Fast Moving Consumer Durables (FMCD), healthcare and pharmaceuticals are pushing towards formalising their workforce, which means workers will be protected under state regulations.
Some 59% of companies across these industries intend to formalise the informal part of their workforce, according to the survey by staffing firm TeamLease. This includes 37% companies from FMCG, 36% from FMCD, and 27% from the healthcare and pharmaceuticals sectors.
The majority of employers find that managing an informal workforce has become extremely challenging, with 45% stating that the primary challenge is to manage wages, 21% stating that there are persistent skill gaps among the workforce, and 15% citing frequent absenteeism as an issue.
“Over 90% of our workforce is still informal. This is concerning not only from a macro economic standpoint but has also become an everlasting impediment for businesses,” said Balasubramanian A, Vice President and Business Head – Consumer and Healthcare, TeamLease Services, reported The Economic Times.
“Through the pandemic, organisations dealt with a new slew of challenges, much of which continues today. Hence, companies have been reinventing their business strategies, and formalising the workforce is a key constituent in this journey,” he added.