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Is talent crunch hurting India Inc?
Fri, 19 Oct Pre-Open

India has abundance of resources and the industry too has developed a strong will to compete with the best in the globe. But the biggest dilemma of our times is that despite having a youthful population, we just don't have the rightly skilled people to catapult India to new economic heights. This paucity of skilled work-force is beginning to hurt India Inc.

The talent shortage is only going to get worse over the coming years. According to Randstad India's global Workmonitor Survey 2012, Indian employers have trouble finding highly qualified people and this trend is set to continue for the next three years as the economy is showing signs of reforms. India Inc is finding it hard to fill in key positions in research, sales and IT. With the opening up of new sectors, the situation will accentuate further. The main reason for such supply shortage is the lack of training and the required experience for the positions which are in very high demand by the industry.

Apart from finding right people for the right job, another problem is retaining them. With 35% of the county's workforce having tenures of less than two years, Indian organisations lag behind their Asia -Pacific and western counterparts in retaining their people. Retention, especially of an organization's high performing employees, continues to be a challenge in India.

Talent constraints are imposing tangible costs on companies. A look at the impact of talent constraints in India suggests that businesses have lost out in terms of cancelling or delaying key strategic initiatives. Skill shortages exist across many segments of the industry and economy of the country. We have in fact moved from a position where not only the technically qualified professionals in various streams are in short supply but there also exists an acute shortage of shop floor workers. Hence both the government and industry must take immediate corrective action and focus on building effective resources to address the issue.

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