Companies find it hard to woo talent
India’s manufacturing sector plays a significant role both in employment generation and in contribution to GDP.
As per industry estimates the manufacturing sector in India contributes 17% to the GDP and employs over 27 million people.
The central government has had a strong focus on the sector and aims to enhance the contribution of manufacturing to GDP to go to about 25% by 2025 this however might be difficult to attain by 2025.
Closer home in the state of Andhra Pradesh albeit agriculture continues to be the leading contributor to the state’s GDP the manufacturing sector too has a critical role to play in driving economic progress.
Having said that, recruiting talent and finding skilled-job ready people in the manufacturing sector is becoming a challenging task for the industry.
Apart from the age old concern of recruits lacking technical knowledge industry insiders say that today’s freshers have a seemingly lacklustre attitude towards working in the manufacturing sector. ‘Getting talented people is not easy.
Many of the new recruits today want easy, Air conditioned and cushy jobs’ said Ms Chanchal Gupta, Corporate head at Synergies Castings Limited one of the leading alloy wheel manufacturers in the country speaking to Vizag Industrial Scan.
Concurred Dr B Muralidhara Rao, Associate Vice president, HR at Toyotsu Rare Earths India Private limited a leading player in the rare earths industry and said ‘We are not able to get the right skill set in the manufacturing sector’.
The city of Vizag which has often been known as the city of fabricators and a hub for welders too is facing the heat.
‘Today there is a huge shortage of machine operators, CnC operators, fabricators, lathe operators etc. Almost 150 small scale units in Autonagar are suffering because of lack of manpower’ said Mr Verma KVSA, chief operating officer at Hobel Bellows company.
One of the mainstays of manufacturing the traditional alloys and iron industry too has been bearing the brunt in attracting talent as the younger generation is opting for more remunerative sectors to work in.
‘Students are choosing for careers in IT & Technology oriented sectors who entice them with lucrative salary packages’ said Mr Prabhat Mohan, Senior General Manager-HR, Sarda Metals and Alloys Limited.
And in cases where candidates do join many leave within the first 6 months of work. ‘We continuously keep hiring as many a times we are unable to retain talent. Attrition ranges between 25-30%’ said Ms Gupta.
As per industry, employees who leave are either going to bigger cities with enahnced salaries or are opting for higher studies. Mr Prabhat stated that attrition rates had shot up post covid.
‘Communication too is a huge problem. Although on paper they boast of many qualifications they significantly lack on technical/practical knowledge’ said Trinadha Rao Vullingala, Assistant HR Manager, Imerys
Apart from attractive salary packages candidates want to be associated with companies that have a good image, brand and can relate to a more modern and adaptable work culture of a company.
The hiring challenge however seems to be more pertinent in the lower to middle level segment. Keeping the skill gap and job readiness in mind many companies have started captive skill training units.
‘We take off role employees and then train them for a period of 6 months to 1 year and then on board them depending on their skill set and knowledge’ said Mr Trinadh.
Sarda Metals recently established a dedicated Sarda Skill Development Centre in Kothur village as part of its CSR activities with an investment of Rs 10 lakhs.
The centre offers a comprehensive array of courses designed to empower individuals with valuable skills and aims to enhance their income potential.
