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Posted on Nov 12, 03:37PM | IBNS
India Inc. may register a significant drop in productivity during the month of November 2012 as one in five employees plans to take off or reduce working hours during Diwali pre/post celebration, according to the results of the just concluded random survey brought out by ASSOCHAM.
According to The Associated Chambers of Commerce and Industry of India (ASSOCHAM) survey of on "Productivity Slump During Diwali week" reveals that the impact of the Diwali festivals will hurt the industrial output by 25pc because fewer employees are available for work during the Diwali month and the productivity has come down from 8 hrs to 4 hrs during the festive week.
"The festive season has traditionally been a lean period for industrial production, in almost every year, the IIP growth in Diwali month has been lower than the overall growth for the year," said D S Rawat Secretary General ASSOCHAM while releasing the ASSOCHAM survey.
For businesses, this could translate into lakhs of man-hours of lost productivity. As per ASSOCHAM rough estimates, nearly 5-8 lakhs people will take off during Diwali and result in a productivity loss of 400 lakhs man hours ( 5 lakhs x 8 hours x 10 days) during the month of November.
The actual level of absenteeism is likely to be even higher, due to pre/post celebrations of festivals, reveals the survey. The productivity slump from the November is going to continue till mid - November, says the analyst.
The survey further indicates that nearly 20pc to 35pc of employee will take off from their work during the festive week in the month of November.
Around 55 per cent of the survey respondents fall under the age bracket of 20-29 years, followed by 30-39 years (26 per cent), 40-49 years (16 per cent), 50-59 years (2 per cent) and 60-69 years (approximately 1 per cent).
The survey was done in the major cities like Delhi-NCR, Mumbai, Bangalore, Kolkata, Ahmedabad, Hyderabd, Pune, Chandigarh, Dehradun etc. A little over 200 employee were selected from each city on an average.
The survey was able to target corporate employees from 18 broad sectors, with maximum share contributed by employees from IT/ITes and BPO sector (17 per cent).
Employees working in engineering and telecom sector contributed 9 per cent and 8 per cent respectively in the questionnaire. Nearly 6 per cent of the employees belonged from market research/KPO and media background each.
Management, FMCG and Infrastructure sector employees share is 5 per cent each, in the total survey.
Respondents from power and real estate sector contributed 4 per cent each.
Employees from education and food and beverages sector provided a share of 3 per cent each. Advertising, manufacturing and textiles employees offered a share of 2 per cent each in the survey results.
It is found that 60pc of respondents indicated their intention to take at least 7-10 days off from work. Just over half of the respondents said they intended to work shorter days (nearly 3 to 4 hours for work), with the rest indicating that they planned either to request days off using their annual leave, or simply call in sick.
"Workplace productivity in India is expected to drop over the festive seasons, with several festivals like Dhanteras, Bhai Duj, Diwali, Chath and others. Workplace productivity is bound to be affected and employers should be concerned about the issue of employee absenteeism and the resulting productivity loss," revealed the ASSOCHAM survey.
86pc of the CEO mentioned that the companies will have a tough time dealing with their employees during such days. Most of the staff, even the managers will be off from their works.
"Majority of corporates have come up with a celebration plans like traditional attire, exchange of gifts, rangoli competition. In this corporate arena these celebrations even though at a small level help in de-stressing the employees and work as good bonding activities," added the majority of respondents.
Taking off is a personal decision and up to the individual. About 25pc of the managers said they would be willing to grant work off to their subordinates.
ASSOCHAM findings confirm that there is going to be a productivity slump during the festivals this month. 46pc of the senior officer said that, this occasion could be ideally used as a team building exercise and morale boosting exercise.