Temp Tactics: Logistics, e-comm firms scaling up gig workforce this festive season

"I work in Flipkart's logistics department, and earn approximately Rs 150 per day. We get paid between Rs 25-42 for delivering parcels, depending on the size of the packet and the distance," Diwakar, a delivery executive in a tier-2 city, told Storyboard18.

With the festive season kicking off, India's promising quick commerce, e-commerce, and logistics companies have recruited millions of workers to ramp up their operations and meet the demands of consumers.

Flipkart, India's homegrown marketplace, said it has created over a lakh seasonal jobs in its supply chain department as of September-end. Amazon India has also created 1.1 lakh seasonal opportunities for the festive season across its operations network.

Seasonal hiring, also known as festive hiring, has become an integral part of India's jobs landscape. Every year, e-commerce giants as well as logistics and quick commerce firms, provide temporary employment to lakhs of workers as consumers are increasingly turning to online shopping, drawn by discounts and convenience.

'Seasonal hiring'

Seasonal hiring is temporary employment that takes place annually around the same time. This new recruitment trend is only a decade old, as it came about as the internet became affordable and Indians more tech-savvy.

According to the specialist staffing firm Xpheno, seasonal employment typically ranges from as low as 2-4 weeks to 3-4 months.

"The current demand outlook indicates an 18-20 percent increase in the recruitment of seasonal talent compared to 2023," said Divya Kurup, Business Head - Sales Staffing, Xpheno.

According to Kurup, the estimated demand covers the season beginning in October and going well into January and early February 2025.

Manoj Yadav, General Secretary of the Forward Seamen's Union of India, said, "During the festival season, many platforms offer higher incentives compared to regular days. They understand the higher demand during this seasons, so they increase trip bonuses. This not only attracts unemployed workers but also students. Most employment is generated from third-party contractors who are moving towards term-based employment for specific periods."

TeamLease Edtech has projected that over a million gig workers would be hired across the sector, with e-commerce leading the charge during the festive season.

'Roles in demand'

Hiring platform Indeed revealed that during the 2024 festive season, there had been a 30 percent uptick in job postings for delivery executives. Companies also scouted talent for roles such as warehouse workers, logistics coordinators, in-store sales executives, and customer care executives.

For instance, Amazon and Flipkart hired thousands of women associates and PWDs (persons with disabilities) in these roles. On the other hand, Meesho aims to create around 2.5 lakh seasonal job opportunities through partnerships with third-party logistics players such as Ecom Express, Delhivery, Shadowfax, Xpressbees, and Valmo during the festive season.

"These roles will primarily involve first-mile, middle-mile and delivery associates responsible for tasks such as delivery picking, sorting, loading, unloading, and return inspections," said Sourabh Pandey, General Manager, Fulfilment & Experience, Meesho.

'Impact of seasonal hiring'

According to Surinder Bhagat, CEO and Co-Founder, Gigin Technologies, the growth of contractual jobs has been a mixed bag for gig workers, providing flexibility and opportunities to earn extra income during busy periods, but also leading to instability and insecurity. Gigin is an app that connects gig workers and employers.

"Gig workers are paid per task. These jobs usually don't come with health insurance, paid leave, or retirement benefits, which are essential for worker welfare," Bhagat said. Unlike permanent employees, gig workers do not receive severance packages or long-term compensation.

"After the festive season, no compensation is paid to workers as they were employed on term-based contracts," Yadav added, "Seasonal hiring reduces the demand for regular workers and poses a threat to job security".

However, some platforms have started introducing incentives to retain a skilled gig workforce for future festive seasons.

Jaideep Kewalramani, COO and Head of Employability Business, TeamLease Edtech, said, "Post the seasonal rush, gig workers pick up other jobs. Sometimes, if the gig worker has outperformed, companies may offer a pathway to full-time work and higher responsibilities."

Notably, festive season hiring leads to a lot of churn in the talent pool. According to Kurup, "The churn can be over 30-40 percent, requiring enterprises to keep the hiring funnel running constantly through the season," said Kurup.

She added that seasonal hiring also has a negative impact on permanent jobs. "Additional demand for employees in permanent roles is expected to be low to moderate, between 5-8 percent over current demand levels," she said.