Biz Staffing Comrade, a name in the HR realm which provides a wide range of recruitment and selection services to diverse companies released the results of its survey held at the HR Conclave - Biz Connect 2024 recently.
The survey aimed to understand the current and future state of the HR landscape. While the majority of 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. This optimistic outlook is largely driven by the rapidly evolving tech sector, where innovations and digital transformation are fuelling a heightened demand for skilled professionals. However, 15 per cent of leaders are bracing for a potential downturn, influenced by economic uncertainties and global trends. Additionally, 15 per cent 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 per cent of leaders mentioned that their organisations have maintained the status quo, a significant 22 per cent have reported significantly better appraisal outcomes and 14 per cent reported slight improvement in the appraisals, indicating a positive shift towards more effective performance evaluation systems. Conversely, 14 and 7 per cent have reported worse and significantly worse outcomes respectively, highlighting the challenges faced by these organisations in accurately assessing and rewarding employee performance.
Compensation strategies are equally nuanced. The survey reveals a wide range of salary adjustments, with 54 per cent of the top leaders reported their organisations offering increments between 5 and 10 per cent, and 38 per cent providing increments between 10 and 15 per cent. While these figures indicate a commitment to employee welfare, the 8 per cent of leaders reported companies offering increments below 5 per cent are treading on perilous ground. In a tight labour market, competitive compensation is crucial for attracting and retaining top talent. These organisations 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. Jasvinder Bedi, Managing Partner, of Biz Staffing Comrade, stated “To bridge this talent gap, organisations are implementing a multifaceted approach, including upskilling their workforce, tapping into referral networks, and expanding recruitment horizons to less saturated talent pools such as tier II and tier III cities.”
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.
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