The Micro, Small and Medium Enterprises (MSME) sector, which accounts for generating the largest employment opportunities in the country, has recorded a relatively higher rate of women participation in the workforce (24%) compared to other industries, revealed the findings of the CIEL HR Analysis Study.
The study titled – Employment trends in MSME Sector, conducted by CIEL HR Services, Staffing and Recruitment firm, says that with 24% participation in the workforce, women were ahead.
The study further said that more than 20% of proprietary MSMEs are owned by women with West Bengal leading at 23.4% followed by 10.4% in Tamil Nadu.
While women’s participation is high in this sector, the study also revealed that their involvement at the leadership level is only 10%.
Over the past two years, the MSME sector has witnessed a whopping 45.5% growth in employee headcount. Furthermore, attrition is less of a challenge for the core traditional manufacturing sector having 3.6 years of median tenure, when compared to that of Environment, Renewables and ITES (new age companies) sectors in MSME having 2.9 years and 2.5 years median tenure respectively.
The report suggests that due to the lack of skilled manpower and hesitance to adopt technology, only 7% of the employees work in the IT field.
Commenting on the survey, Mr. Aditya Narayan Mishra, Managing Director and CEO, CIEL HR Services, said “The MSME sector is one of the significant sectors for the growth of our economy with their 30% contribution to the GDP. It is indeed a positive indication to see the employment growth of MSMEs, various schemes and initiatives by the Government of India like Udayami Bharat, MUDRA Yojana and Aatmanirbhar Bharat give a major boost to the growth of MSMEs with a laser-sharp focus on upskilling and reskilling of employees. While there has been a steady increase in the women’s participation rate in the MSME industry, our study has also revealed the need for better gender representation at an executive level for improved organisational climate and better financial performance”.
The study also says that Engineering, Operations and Sales/Business Development are the major business functions in the MSME sector and that there is intense demand for talent in the Sales and Business Development domain with more than 50% of job postings. The finance function also stands out with 17% of the job postings.
99% of recruiters are offering an on-site job. MSMEs are unwilling to continue remote working post the pandemic
CIEL Works aims to conduct detailed research and analysis across sectors for a deeper understanding of the changes happening in the field of Recruitment, Staffing, and Business world and present insights for the leaders to be informed on today’s evolving business and human resources while making critical decisions.