Indian businesses are facing the most diverse
work environment that they have ever seen. By 2020, there will be
five different generations working together – each with different
skills, experiences, work habits, and motivations.More
of these workers will be freelancers and long-term contractors. All
of this is unprecedented – and represents a major opportunity for
productivity, talent development and employee engagement. But
according to new research from Oxford Economics, most companies are
unprepared to capitalize on it, including
those surveyed in India.
As revealed in “Workforce
2020,” an independent, global study
by Oxford Economics with support from SAP SE,
most companies recognize the importance of managing an increasingly
international, diverse and mobile workforce. But the vast majority
lacks the strategy, culture, and solutions to do so.
Compensation Matters Most: The most important
benefits and incentives to Indian employees are: competitive
compensation (66%), bonuses and merit-based rewards (61%), and
vacation time (46%). And 49% of employees say higher compensation
would increase loyalty and engagement with their current job.
Millennials are Misunderstood: Forty-seven percent of
Indian executives say they rely on younger employees or recent
graduates to fill entry-level positions and 66% of executives say
Millennials entering the workforce are impacting workforce strategy.
But according to the survey, they may be out of
touch with what Millennials think—42% of executives say Millennials
will consider leaving their job due to lack of learning and
development, but just 2% of Millennials say they have done so.
The Talent Gap is Widening: The need for
technology skills will grow, but less than one-fifth of employees
expect to be proficient in key areas in three years, including cloud,
analytics and mobile. The push is on to fix this. Sixty-seven percent
of Indian executives say their company widely offers supplemental
training programs to develop new skills.
But employees are not convinced. Only 32% of those surveyed say
their company provides the right tools to help them grow and improve
job performance. Forty-two percent of employees say their company
encourages continuing education and training to further career
development.
The Workforce is Changing: As the economy
evolves to a state where nearly everything can be delivered as a
service, Indian companies are increasingly tapping external expertise
and resources they need – and on an as-needed basis– to fill
skills and resource gaps and to accommodate rapidly changing business
and customer demands. That means more temporary
staff, more consultants and contract workers, and even
‘crowd-sourced’ projects. In fact, of
those companies surveyed as part of “Workforce 2020”, 80 percent
of executives say they will be increasing the use of contingent,
intermittent, or consultant employees.
Bhuvaneswar Naik, Head of Human Resources, SAP India
said, “SAP and Oxford Economics undertook this global study to
better understand how organizations in India, and globally, can
prepare for the emerging workforce. Businesses must understand the
workforce of the future and its importance to bottom-line success.”
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