10 Regulatory Reforms Can Create 700,000 Sales Jobs In Delhi/Ncr In The Next 3 Years – States Teamlease
Delhi: While manufacturing accounted for the bulk of jobs created in some of the developed countries, India’s transition from farm-to-non-farm jobs will be spearheaded by the sales domain states TeamLease analysis. With 10 regulatory reforms sales domain has the potential to create around 700,000 jobs in Delhi/NCR and 10 million across the country. The necessary regulatory reforms include consolidation of 44 central labour laws into 4 labour codes, Unique Enterprise Number (UEN), employee salary choice, PPC compliance portal, the Factories Amendment Bill 2016, Small Factories Act, amendments in contract Labour and Regulation Act 1970, amendments in Industrial Disputes Act 1947, amendments in Trade Union Act 1926 and the adoption of the Model Shops and Establishment Act. Without any reforms, the region is still expected to create at least 175,000 new sales jobs in the next 3 years.
Further, from an overall hiring perspective also the city seems to be on a growth trajectory. In the coming fiscal the city will see a 17% growth in the hiring outlook. Interestingly, 32% of job seekers consider Delhi to be the best place to start their careers.
An in-depth study, according to the analysis, currently, Delhi employs 343,000 sales professionals across sectors, this amounts to 33% of the overall 1.5 million sales profiles in the country. But with a combination of macro-economic, strategic and technological factors like GST, FDI, digitization and Artificial Intelligence (AI) the profile will witness a significant growth. With an increasing retail store space of 5 million sq ft, Delhi’s retail sector will be the biggest driver of demand for sales talent. Other sectors like hospitality, real estate, etc. will push the demand for sales talent significantly.
In terms of employers expectations, learning agility, adaptability, interpersonal skills, emotional intelligence, conflict resolution and self determination are few of the skills that the employers expect from any potential sales employee.
KEY FINDINGS OF THE SURVEY
Ø The sales domain in India has the potential to create 2.5 million jobs over the next 3 years, without any structural reform. And, 10 million sales jobs with structural reforms
o FMCG / FMCD >> potential to create 30% of the 2.5 million jobs
o Organized Retail >> potential to create 50% of these jobs
Ø The immense job creation potential could be realized through a combination of macro-economic, strategic and technological factors
o A successful GST >> up to 12% additional sales jobs in certain sectors
o FDI potential >> 50% more sales jobs
o E-payments >> 8% and AI >> 15% to 25%
Ø A severe demand-supply mismatch across sectors needs to be addressed by initiatives that encourage skill development and cross-industry and cross-location talent mobility
o BFSI and Automotive has a relatively larger sales talent pool in Hyderabad, Chennai, Pune, Kolkata and Ahmedabad which could help fill deficiency in other sectors
Ø While the function has kept pace with the times, Sales skills are a critical deficiency across sectors, and across all levels of an organization
o Sales skill deficiency >> Organized Retail and Tourism (65%), Travel & Hospitality (35%)
o Demand-versus-supply skill gaps >> up to 18% in Negotiation / Persuasive Skills, Market Trends and Tech Skills
Ø Growth and investments, capacity creation / expansion and innovation are the major drivers of sales jobs in FMCG, FMCD, Retail and Ecommerce
o Positive macro-economic factors will result in incremental 170 K jobs in FMCG and 260 K in FMCD during 2018-2021
o Retail real estate capacity expansion could potentially add 680K retail sales jobs during 2018-2021
o Salary growth prospects as high as 25%
o Digital transaction volumes accelerating at 31% will create 122K Merchant Acquirer jobs
Ø The new, ‘expanded’, sales profile which goes beyond face-to-face and door-to-door sales is valuable to Ecommerce.
o 61% of all sales organizations see ecommerce as the biggest threat to retaining talent.
o 30% of employers say sales roles most vulnerable
Ø Salary and compensation is what attracts 95% professionals to sales while career growth opportunities attract 93%, company culture attracts 90%
Commenting on the analysis, Mr. Mayur Saraswat, Head of North Business, TeamLease Services said, “The city is going through an exciting phase with most of the sectors experiencing growth prospectus. The fact the employers here pay at least 30% premium over other cities to sales professionals makes it a favored choice for job seekers. The ability of companies to take advantage of this opportunity will depend on their capability to sell more, sell better and sell faster which in turn will stimulate the demand and make sales the inevitable and most potent profile.”
A detailed analysis, according to study owing to rapid industry transformation, market expansion, customer evolution, reach and revenue growth, the business models are evolving and so is the sales function across sectors. By 2025 India is set to become the fifth largest consumer durables market in the world and it will have a corresponding impact on sales profile. With FDI inflow of 77K crore between April 2000 and March 2017 the incremental sales job creation resulting from FDI inflow is estimated at around 200k in the next 3 years. Similarly, the retail and ecommerce sector will see an incremental sales job creation of 350K in the next 3 years. Some of the key profiles that will see a huge demand in FMCG are sales representatives, Business Development Officer, Sales Coordinator, Territory Sales In-charge and sales officer. It will contribute to 71.7K incremental job creation. However, in FMCD 60.6K incremental jobs will be contributed by profiles like Cluster manager, Trade sales manager, Inside Sales, Sales trainers and Category Managers. Retail sector will see an incremental job creation of 69K in profiles like Store Manager, Channel sales specialists, Relationship Manager, Sales Executive and Promoter.
Apart from traditional sectors new age business driven by the governmental thrust on digital India is also going to add a hundred thousand jobs. The adoption of mobile banking and e-payments will add new profiles such as merchant acquirers. In fact, the profile alone will create around 122K jobs in the next 3 years.
However, as much as there is a demand for talent, the supply is uneven. While BFSI and automotive sectors in cities like Mumbai, Delhi, Kolkata, Chennai and Hyderabad have a surplus of talent, organized retail, Tourism, Travel & Hospitality and Consumer Durables/Goods seems to struggling with deficit of supply. Organized retail has a shortage of around 65%, tourism, travel & hospitality of around 35% and Consumer Durables/Goods of 30%.
Analyzing a plethora of sectors according to the study, apart from Sales, the other domains that will see a boom in job creation are Engineering & Design, Information Technology, Marketing, Accounts & Accounting and Human Resources.
A detailed analysis it also delves deep into the various factors that govern talent management like attrition. According to the research only 32% of the employees stay with an organization for more than 5 years indicating the need for a robust and comprehensive people management policy. As per the analysis more than 93% of the sales professionals feel selling is repetitive. The second most common reason is poor reputation of the profession.
India’s Job Market Salvation: Sales is a comprehensive analysis that brings forth the areas that will contribute to job creation. The analysis covers 10 sectors namely organized retail, consumer durables / goods, construction & real estate, healthcare & pharmaceuticals, beauty and wellness, BFSI, automobile, transportation, logistics, warehousing & packaging, food processing and media and entertainment.