Fintech firms hire 700,000 people who lost jobs in slowdown-hit sectors

Online marketplaces, foodtech aggregators, and fintech firms have hired about 700,000 people, temporarily, in the festive season. Most people who have been hired are those who lost their jobs in other industries, such as automobile, hit by a slowdown. 

The tenure of such jobs is about 6-8 months, with Amazon and Flipkart creating the primary demand for labour. Across the supply chain, the two e-commerce giants have created 140,000 temporary jobs to meet challenges of last-mile connectivity and customer support in the festive season.

The number of indirect jobs has also increased 30 per cent through the sellers’ network. According to the Indian Staffing Federation, about 650,000 jobs were created this festive season. Demand from temporary hiring was mostly from e-commerce, fintech, banking, and financial services, as well as some consumer sectors.

“These sectors are looking bullish even amid muted demand in temporary hiring,” said Rituparna Chakraborty, president, Indian Staffing Federation. “Aggressive hiring is expected for the top three roles — delivery personnel and support functions, supply chain and logistics operations, and jobs at seller locations for packaging and warehouse management.”

Hiring for these jobs starts around August and goes up to end-December. In e-commerce and fintech companies salaries with incentives can go up to Rs 30,000. The average orders delivered per day by an executive are about 15, which goes up to 25 during the festive season due to the huge demand and competition.  An executive who earns about Rs 20,000 a month can receive up to Rs 35,000 during the festive season.

Fintech giant Paytm has already added 5,000 more agents for the festive season.

“The company already has 8,000 agents and with an additional 5,000. It aims to onboard new merchants. With new members aboard, we will ensure that Paytm reaches to the remotest part of the country during festive celebrations,” said a Paytm spokesperson.

The food tech sector has seen a lot of strategic temporary hiring this festive season.

“There are broadly four areas where temporary hiring takes place — electronics, food (perishable, non-perishable, processed and unprocessed), health and health care, and general. With new entrants such as FreshMenu and Swiggy, strategic hiring has started. Bengaluru, Chennai, Telangana and Andhra Pradesh are main places where e-commerce is enabling mobilisation of people. Another area from where mobilisation happens is the Northeast because of lack of job opportunities and in general people having good English skills,” Sudeep Kumar Sen, head sales at staffing firm TeamLease Services. 

He added with e-commerce, not just delivery but also return rates have gone up. So that is also creating demand for additional workforce.

“Call centres servicing ecommerce also pay people who speak Hindi, English or at least one regional language about Rs 30,000 per month. However, because of mobilisation of talent across the country, call centres often see a demand-supply gap,” said Sen.