India faces talent shortage

Expansion is on the cards for employers across India in 2019, as 73% say they feel optimistic about the country’s growth outlook, and 66% have plans to further expand their headcount.

However, while the country’s economic trajectory is strong, challenges remain on the employment front, according to a report released on 24 July 2019.

A lack of skilled talent looms over the country’s rapidly disrupting workforce, as 52% of employers report the talent shortage as their biggest hiring challenge.

These findings are part of RGF International Recruitment’s Talent in Asia report, a comprehensive analysis of more than 3,500 responses about hiring trends across 11 Asian countries and markets, and various industries.

The aim of this inaugural report is to better understand the needs, demands and expectations of both candidates and employers in Asia.

India’s thriving Technology, Internet & Telecommunications sector reigns supreme for job seekers, emerging as the most in-demand sector to work in. This comes as no surprise given the rapid adoption of industry-disrupting technologies and investments infused by the government.

A highly competitive compensation package remains the key motivator for professionals in India (64%), as a whopping 89% of local talent expect a salary increase to switch jobs.

On average, across all industries and all job levels, local talent expects a pay increase of 21% when switching jobs.

Other than salary, Indian job-seekers care about culture and career progression when looking for a new job, with the need to work with “top calibre colleagues” (12.8%) coming in just ahead of “stable leadership and clear direction” (10.2%)

On the employer side, while only 5% of Indian respondents stating a “pessimistic” growth outlook, hiring managers will need to refocus their recruitment efforts to plug talent gaps in key industries – especially when also dealing with low hiring budgets (19%) and struggling to attract talent that matches the company culture (9.4%).

In terms of skills, Indian employers are looking for talent with deep industry expertise above all else (71%) – but are equally as concerned about soft skills such as accountability (12%) and the “agility & flexibility to change” (10%).

To tackle these hiring challenge, nearly half (47.1%) of employers are planning to expand their internal recruitment teams, followed by better utilising job boards and professional networking sites (20.1%).

Additionally, 21% of employers are exploring the use of artificial intelligence (AI) to help boost their recruitment efforts.

“There is an urgent need to upskill India’s young talent force in order to meet the labour gap that remains unsatiated. And to become exceedingly competitive, businesses and government must work together to develop sound training initiatives that deliver a technically charged workforce, as well as emerging skills that are aligned with the demands of the job market,” said Sanjay R. Shastry Managing Director RGF Executive Search India.

Sachin Kulshrestha, Managing Director RGF Professional Recruitment India, said this sentiment is echoed across most of the countries and industries covered in this report to address the talent shortage.

“As the composition of our workforce continues to change beyond human factors, it is crucial for employers to recognise what really attracts and retains top talent today.

“While compensation will remain a key driver, companies must invest and develop a competitive work environment, solid leadership and progressive culture. As top talent becomes more scarce, the companies that aren’t doing enough will find their best talent hand-picked by those investing in improving their employer brand, training programs and market competitiveness,” said Kulshrestha.

Other key findings from the Talent in Asia report include:

66% of job seekers across Asia say fair and competitive compensation is their highest priority when switching jobs;

Across all industries, talent want an average salary increase of 22% when changing jobs;

71% of employers across Asia consider the shortage of talent their biggest hiring challenge;

42% of employers understand they need to improve their employer branding to attract and retain top talent;

15% are investing in artificial intelligence (AI) to aid their recruitment strategies and find the right talent. fiinews.com