HR leaders (62%) expect moderate growth this financial year, indicating steady expansion across various sectors, a smaller segment (8%) is anticipating substantial job creation, particularly in thriving industries. The data has been shared by the Biz Staffing.
Thanks to the rapidly evolving tech sector, where innovations and digital transformation are fuelling a heightened demand for skilled professionals. However, 15% of leaders are bracing for a potential downturn, influenced by economic uncertainties and global trends.
Additionally, 15% foresee a stable job market, reflecting a cautious optimism amidst these varied predictions. This complex landscape highlights the necessity for businesses to implement agile strategies to effectively navigate India’s evolving employment scenario in the country.
However, this growth narrative is tempered by the complexities of performance management and compensation. The appraisal landscape is particularly nuanced. While 43% of leaders mentioned that their organisations have maintained the status quo, a significant 22% have reported significantly better appraisal outcomes and 14% reported a slight improvement in the appraisals, indicating a positive shift towards more effective performance evaluation systems. Conversely, 14% and 7% have reported worse and significantly worse outcomes respectively, highlighting the challenges faced by these organizations in accurately assessing and rewarding employee performance.
Compensation strategies are equally nuanced. The survey reveals a wide range of salary adjustments, with 54% of the top leaders reported their organisations offering increments between 5% and 10%, and 38% providing increments between 10% and 15%. While these figures indicate a commitment to employee welfare, the 8% of leaders reported companies offering increments below 5% are treading on perilous ground. In a tight labour market, competitive compensation is crucial for attracting and retaining top talent. These organizations risk losing valuable employees to competitors offering more lucrative packages.
Furthermore, other findings from the survey indicate that the predicted surge in AI and Machine Learning has created a dual-edged challenge: immense opportunity and acute talent scarcity.
The confluence of economic uncertainty and technological acceleration has transformed the HR landscape into a complex and dynamic terrain. Overall, the survey findings highlight the critical role of HR in navigating these turbulent waters. It’s no longer sufficient to be a mere administrative function; HR must evolve into a strategic partner. By understanding the evolving talent landscape, anticipating future trends, and implementing data-driven strategies, HR leaders can create a competitive advantage.