Firms increasing find them operating in business marked with uncertainty. A complex nexus of forces are at play such as pressure to reduce costs, higher expectations of customers, constant drive to meet global competitive challenges and opportunities offered by advancements in information technology. HR professionals are always in a flux to predict the future and prepare for it. 2012 was an intensive year. Issues of labour violence, skill deficit, increasing inequitable growth, generational gaps, effects of technology and social media in the workplace, all came forward in an environment of global and domestic uncertainty. The low economic sentiment in the first half of year forced organisations to strike the balance between long-term people investment and short-term business pressures.
Indian economy has bounced back to reasonably attractive growth rate backed by growth in its key industries like retail, banking, health care and hospitality among others. Organisations will continue to see a strong hiring outlook in the later part of the year.
Recent developments on the economic front like opening up of various segments for FDI – retail, aviation, insurance and digitisation – will lead to increase in hiring activity in the next one year. The remarkable growth shown by India has attracted large MNCs to India. The recruitment industry in India is driven by a number of factors including the growth of key client industries, large conglomerates entering new business domains, entry of multinational companies in the Indian markets among others.
In the hiring space, companies are becoming particularly selective about the people they recruit. However retaining skilled talent will be a key challenge. The corporate perspective has shifted from treating this as just a basic HR procedure to an investment into human capital.
Another area of concern for next year will be the ability to develop managers who will be able to take up potential leadership positions. So, companies are actively renewing the thrust on training and skill development. There are collaborations happening between corporates and training schools for skilling the workforce.
The beginning of next year might not see a great change in compensation and benefits, but it is expected to pick up strongly in the later half. In the coming year, social engagement is likely to emerge as a strong tool for HR professionals. With the talent landscape becoming increasingly competitive, HR needs to understand the best mechanisms to attract talent.
