News: Attrition rates decline in Indian telecom sector: TeamLease

Strategic HR

Attrition rates decline in Indian telecom sector: TeamLease

Customer-facing, tech roles drive demand for young talent as industry navigates transitional phase
Attrition rates decline in Indian telecom sector: TeamLease

The Indian telecom sector is experiencing a period of moderate growth, with a slowdown in overall workforce expansion but continued demand for entry-level talent in specific areas, according to a new report by TeamLease Services, a staffing company.

While the industry's associate workforce expanded by an impressive 51.05% in FY21-22, this growth tapered to 31.41% in FY23-24, reflecting a transitional phase for the sector. However, telecom companies continued to actively recruit field sales executives, customer relationship executives, retail executives, installation engineers, fibre repair executives, and cell site repair staff during this period.

"Our data reveals a dichotomy in the telecom sector's workforce trends," said Kartik Narayan, CEO-Staffing of TeamLease Services. "While the overall employee growth rate slowed, we witnessed a sustained demand for young talent in customer-facing and technology roles that support the industry's field operations and network infrastructure."

The findings underscore the telecom workforce's youthful demographics, with 56.8% of employees falling within the 18-29 age group, aligning with the industry's frontline service delivery and tech deployment requirements.

The sector's attrition rate declined from a peak of 58.4% in FY22-23 to 43.4% in FY23-24, which can be partially attributed to the moderated growth in the workforce size. Sustained average salaries between ₹24,600 - ₹25,475 likely supported employee retention efforts.

"While the slowdown in overall growth is notable, we are encouraged by improving attrition rates and sustained entry-level hiring traction," said Subburathinam P, Chief Strategy Officer at TeamLease Services. "Our insights underscore telecom's strong appeal among young job seekers and the industry's efforts to attract this digital-savvy talent through competitive compensation."

The telecom industry's focus on retaining and attracting young talent aligns with its efforts to enhance customer experience and bolster technological capabilities, positioning it for further growth and innovation in the digital era.

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Topics: Strategic HR, #IndustryInsights, #Hiring

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