Dip in employment due to incentive-based jobs at Reliance: Mukesh Ambani

Reliance Industries chairman Mukesh Ambani on Thursday clarified that a dip in direct jobs was due to the company’s strategy of embracing newer incentive-based engagement models.

The total employment created by Reliance has gone up as Reliance added 1.7 lakh new jobs last year, Ambani says at the 47^th annual general meeting of the oil-to-telecom conglomerate.

Reliance, which is amongst the largest employers in India, was in news earlier this month when its annual report revealed that the company’s workforce dropped by around 11% or 42,000 fewer jobs in 2023-24.

Clarifying the workforce numbers, Ambani says the nature of employment creation is changing globally, primarily due to technological interventions and flexible business models. “Therefore, rather the just the traditional direct employment model, Reliance is embracing newer incentive-based engagement models. This helps the employees earn better and instils the spirit of enterprise in them. That is why direct employment numbers show a slight dip in the annual figures,” he explains.

“If we include both the traditional and newer engagement models of employment, our headcount today is nearly 6.5 lakh,” Ambani adds.

“Employment creation for India’s talented youth has to be our top national priority,” the RIL chairman says. “Among all of Reliance’s achievements so far, this one will always hold a special place in my heart.”

“Reliance hired 1.71 lakh new employees across diverse businesses, expanding its direct workforce to nearly 3.48 lakh,” the company’s annual report stated.