5 issue to address the high churn rate of blue collar workforce
Blue-collar workers are everywhere, from working in large industrial plants spread across thousands of acres to driving taxis. Based on research conducted the steady growth seen in the last two years the numbers are likely to rise, creating 21 lakh new blue-collar jobs in the next 12 months.
As the number of blue-collar jobs increases, the attrition rate increases hand in hand. Attrition in most verticals ranges anywhere between 40% to 300%. Now a question arises here: Why do blue-collar workers jump jobs ever so often?
The reasons mostly stem from the lack of basic benefits that apply to other jobs in the market. Here, we look at some of the key issues and their impacts that affect blue collar job seekers and organisations hiring them.
Issue 1: Reward and Recognition
Blue-collar workers typically make less than ₹27,000 a month, which is just above the poverty line of ₹25,000 per month for a family of four. Blue-collar workers are mostly in the field, but they receive far less recognition for the work done.
Issue 2: Lack of Benefits
Blue-collar workers are not offered portable perks and benefits that are typically available to temporary, and self-employed workers by job providers. There is a lack of proactive offering of benefits like training opportunities, financial stability, flexibility, career growth, and upskilling for blue-collar job seekers by employers.
Issue 3: Absence of Upward Mobility
Blue-collar needs like education, skills development, and a focus on well-being aren’t different from white-collar needs. Simply said, there hasn’t been a tech solution designed with blue-collar workers in mind.
Issue 4: Falling Prey to Scams
Blue-collar workers are especially susceptible to false employment generated by dishonest recruiting firms due to growing mechanisation, lack of available positions, and pressing financial requirements. They unwittingly fall into debt traps and, in extreme situations, even commit data theft.
Issue 5: Threat and Impact of Attrition on both Employees and Organisations
One of the most delicate concerns that corporate organisations are worried about is employee attrition. On the one hand, there are more unemployed people, but on the other, millennials have a relatively high attrition rate. This poses a huge risk to the company’s reputation and make it difficult to find the right replacements. This in turn hampers a company’s reputation while causing regular disruptions in workflow management and low employee morale.
While these issues have impacted and continue to impact blue-collar workforce, more opportunities for local employment are mushrooming owing to the growing need for logistics professionals. This also comes with the added benefits of fair pay with lower living expenses and achieving financial security.
However, a huge effort is still needed to provide sustainable solutions to the issues faced by the blue-collar workforce. Organisations that have focused on the needs of white-collar workers, now need a reliable partner that understands the blue-collar ecosystem, its needs and pain points, and can help it improve its well-being.
We at Peel-works understand the huge disparity in the availability of HR solutions for blue-collar workers and white-collar workers. We are actively working to fill in this gap with our solutions to overcome on-ground problems and help in improving productivity of the blue-collar workers.