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GST 2.0 impact: Companies rush to hire temporary staff; rate cuts expected to boost festive buying

Companies across consumer electronics, e-commerce, automobiles, retail, logistics, and FMCG are rushing to hire temporary staff as India’s festive season kicks off, following reduced GST rates from September 22. Industry experts say many shoppers had postponed purchases earlier this season, which dented sales, but with firms passing on GST cuts through price reductions, buyers are expected to spend more freely, prompting companies to step up hiring and marketing. Staffing agencies including Quess, Randstad, and CIEL HR report that demand is highest for frontline and fulfilment roles. This includes in-shop demonstrators, retail sales staff, warehouse pickers and packers, last-mile delivery personnel, and service technicians for appliances and electronics. Contact-centre and back-office staff are also being scaled up to handle higher order volumes. “Several sectors that already ran festive hiring drives are now extending mandates and adding last-minute temp headcount in response to the GST rate cuts and the expected post-cut sales surge,” Aditya Narayan Mishra, MD of CIEL HR told ET. “Demand is strongest in consumer durables, followed by auto and large BPO/CRM operations,” Mishra further added. Shilpa Subhaschandra, chief commercial officer, Operational Talent Solutions, Randstad India, said, “We are seeing clients, particularly in ecommerce, quick-commerce, consumer electronics, auto, retail, logistics, and FMCG extend and add last-minute mandates beyond their original plans to capture the anticipated jump in festive sales.”Subhaschandra further told ET, “On average, these additional mandates translate to a 20-25% uplift in temporary workforce requirements versus last year, with quick-commerce platforms showing the largest thrust, expanding headcount by 40-60% to handle surge volumes.” The festive season that began with Onam in August and runs through Diwali, is India’s biggest shopping period, accounting for 25–30% of annual sales for most consumer goods companies. However, early sales during Onam in Kerala and pre-Durga Puja in East India were subdued as consumers waited for the GST reduction. Industry executives expect strong sales to continue through Christmas as pent-up demand is released. Retailers and electronics chains are hiring up to 20% more temporary staff to manage the anticipated rise in demand from Navratri to Diwali. Auto companies including Mahindra & Mahindra and Maruti Suzuki are also increasing staffing requirements, according to recruitment firms. Email queries to these companies went unanswered. Leading electronics retailer Vijay Sales is expanding its temporary workforce by 10–15% this festive season, said director Nilesh Gupta. He added that demand is expected to rise for large-screen televisions and air conditioners, where GST has been reduced from 28% to 18%. Daikin India, a Japanese AC manufacturer, is boosting shopfloor promoters and increasing its marketing budget to recover from a recent sales slump, said managing director KJ Jawa. Great Eastern Retail will also hire more temporary staff in its top 20 high-footfall stores than originally planned, said Pulkit Baid, director of the East and North India-focused electronics chain. Auto companies have increased hiring by 20–25%, while e-commerce staffing is growing steadily at 15–20%, with a further surge expected over the next two weeks, said Nitin Dave, CEO of Quess Staffing Solutions told ET. “While broad salary levels have not shifted significantly, some employers are offering attendance and joining bonuses to attract talent,” he added.

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