Recently we observed the manpower shortage in SMT sector at Pune area. Several companies are now hiring but due to manpower shortage the salary demand by experienced manpower has been increased drastically. The persons with 7~8 years experience are demanding for double salary as compare to what they were getting 2 years back.
This is a dangerous situation for manufacturer.
Korea & China also faced same situation but they got SMT consulting and training from other country that’s the reason this situation not affected a lot on their salary as they quickly improved manpower skill. But at India situation is something different, here manufacturers are not ready to spend money for consulting and training because they worried after training trained manpower will leave the company. Other difference is at Korea, we don’t like to pickup a person who frequently change their jobs because we can’t guarantee when they’ll leave. But what I observed here, the person having more companies experience will get higher salary. I have seen within 1 year a person have changed 3 companies and doubled his salary. This is due to manpower shortage. If a company wants a skilled manpower they need to increase his salary but how can you verify his skill and know-how?
At present the skill is verified by the previous company’s Name and Salary. It means the person having big company experience & higher salary are preferred. There is no procedure to verify the skill of a person who is interviewing the candidate. If he doesn’t have enough knowledge then How he will select a skilled manpower?
Here the main problem is without improving the skill, only salary is getting increased. If skill also improved with salary then there is no issue because Productivity & Quality will also improved simultaneously.
2 years back I had explained, exactly same situation in my seminar. It is a beginning, when more SMT manufacturing plants will open, the manpower demand will be higher.
In this situation while India strives towards Make in India, increasing labour costs threaten to erode India’s advantage in producing goods and services at low cost. The foreign investors are shifting from China to India due to high salary demand at China. If the situation will be same at India, for them it will be difficult to survive here too.
The only solution I can see for this situation is conducting Training Programs to upgrade the skill of SMT manpower and providing Process Consulting to make correct procedures at manufacturing plants.