As the festive season shopping on ecommerce platforms has scaled newer heights this year, there has been a major influx of job opportunities on such platforms to match the supply-demand across the country. The companies have patted their backs for enabling lakhs of jobs during the ongoing season, be it supply chain jobs, delivery associates or seller and logistics networks. The increase in fulfilment centres (FCs) has also been observed.
While the festive hirings have boosted local economies and increased disposable incomes, there is another side to it that is not much talked about. The majority, if not all, of these hirings are on a contractual basis and are seasonal in nature. While this may seem like a bonus for those who seek temporary employment, it poses concerns among full-time job seekers.
The Hiring Bonanza
As the country entered the much-awaited festive season, the top ecommerce firms started rolling out job opportunities to meet the demands. On 12 September 2024, Amazon India notified that it has created more than 1,10,000 seasonal job opportunities across its operations network ahead of the upcoming festive season. Flipkart stated that its supply chain will create over 1 lakh new jobs across over 40 regions this festive season.
Meesho, an ecommerce marketplace notified that it has enabled around 8.5 lakh seasonal job opportunities within its seller and logistics network, with more than 60 per cent of these coming from tier 3 and tier 4 regions. The numbers appear to be compelling, but is there any catch to it?
Increased Importance Of Tier-2,3 Cities
As the internet penetration and the boom of ecommerce platforms have changed the trends of the shopping behaviours of the country, there has been an increase in hiring in tier-two and three cities. A report by the Pahle India Foundation highlighted that respondents from tier-three cities spend more time and money on ecommerce platforms than tier-one and tier-two respondents.
Around 40 per cent of respondents in tier three cities reported monthly spending of above Rs 1,000 on online shopping, as per the report titled ‘Assessing the Net Impact of Ecommerce on Employment And Consumer Welfare in India’. This has forced the companies to pay extra attention towards these emerging markets.
“With Zepto scaling up its operations, especially in Tier 2 and Tier 3 cities, we expect even greater demand for gig workers. To address this, we are proactively ramping up our efforts with targeted campaigns and attractive incentives for new gig workers. Additionally, we have streamlined our training processes to ensure that new members are quickly and effectively integrated,” stated Vikas Sharma, Chief Operating Officer (COO), Zepto.
The Trend of Seasonal Hirings
As the numbers have suggested that the hiring has been going on a healthier trajectory, the contractual nature of such hiring has become the talking point. As the companies take this opportunity to identify their potential long-term talent, such hiring promotes workforce participation.
“For companies, seasonal hiring offers flexibility and an opportunity to identify potential long-term talent. Workers gain experience and skills, enhancing their future job prospects. By increasing disposable income, and supporting local businesses, it also reduces reliance on metro cities and helps in skill development,” stated Gagan Anand, Founder, Scuzo Ice ‘O’ Magic.
Long-run Impact Of Short-term Hiring
The question arises regarding the impact that seasonal hiring trends during festivals have on the future of ecommerce workforces. While companies meet their demands through a surge in workforce for a shorter duration and then resume back to normalcy, it is the workers who often feel stranded in their search for a permanent source of revenue.
“Hiring Contractual workers is a very oldest form of policy in companies to make sure they reap the full benefits during peak seasons. I have seen this trend that when a person is contractually hired by an organisation, they often end up getting occupied in that organisation. Though people are hired contractually, out of 100 per cent, at least 40 per cent are carried forward in the organisation for long, even in ecommerce,” highlighted Mukul Goyal, Co-founder of Stratefix.
While companies have advertised themselves as mega job creators, some experts feel that these firms have been preferring their existing workforce when embarking on a longer journey in their operations.
“For now, many ecommerce brands are leaning on their existing workforce, possibly reflecting a focus on operational efficiency and reliance on enablers to cater to the rest of it. Instead of expanding teams, companies are refining processes to manage the anticipated demand surge, leveraging automation in superior customer experience across the funnel,” observed Chirag Taneja, Co-founder and Chief Executive Officer (CEO), GoKwik.
Whatever the scenario might turn out in the future, the fact remains evident that these ‘seasonal’ jobs have been driving the festive economies for a long period now and have become a part of the ecosystem. As the ecommerce platforms witness major changes in their demand, reach and customer portfolio, the shape of these hiring may change, but the core is likely to remain intact.
