Budgeting For A Seamless Growth Trajectory

As the nation moves through a great period of change, we believe that is imperative that we take relevant steps to not fall behind and thus it is important to set expectation very clear before the beginning of the financial year. 

The Covid-19 pandemic has been a major unforeseen disruption impacting all the corners of the world across economies over the last few years and unfortunately is still prevalent today globally. No one was ready, neither businesses, institutions nor governments. The pandemic has taught us many things both personally & professionally and moreover around what is important and what is not. For corporates, budget allocation has become very sensitive keeping in mind the current on-ground situation, while also building the future.

Present Scenario

To begin with, we saw an emergence of a hybrid working culture like never before and along came with it its own challenges. Employee wellbeing and mental health wellness have become top priorities and many organisations including ours have gone a step ahead in providing support not only to employees but to business partners and the families as well. An interesting survey by The Future Workplace 2021 HR Sentiment found that 68% of the senior HR leaders (40% were CHROs) rated employee well-being and mental health as a top priority. At present the thought behind wellbeing has grown and evolved from just being physical well-being to mental, social, career and financial. Consequently, corporate spending on health, safety and wellness is expected to increase multifold.

Along the same lines job security has been a major topic of discussion and this time it is imperative that organizations & government chalk out employee-friendly labour laws to provide them with a safety net. Ensuring a sense of security during the pandemic, a sustained emphasis on remote work wherever possible, vaccination drives, and isolation centers will go a long way. Additionally, deploying covid benefits schemes & policies, aimed towards those most gravely affected during the pandemic – through the provenance of education benefits and ex-gratia insurance are the need of the hour. Similarly, productivity has also become a major agenda in many forums. Employee engagement programs and pulse surveys have become more important and widespread. 

HR Budgeting At Organisation’s Forefront

As we move ahead it is fascinating to see the focus and investment around digital technologies across industries. Digitalisation and web technologies have become indispensable for business continuity and growth. Their adoption and use cases have skyrocketed in the last year and I think this is just the beginning - thus we are expected to see a fairly good amount of budget allocation by organisations in this area. 

Online upskilling is becoming a prominent topic and many companies are leveraging it due to reduced costs and ease of access. Close to 40% of respondents to a survey by 451 Research S&P Global Market Intelligence said that their organisations are thinking to make their biggest HR investments in learning and development (L&D). At the moment, I see that we are facing a shortage of people with critical & niche skills across many sectors and industries. Particularly in heavy industries and natural resources sector, people from functions such as exploration, asset optimisation, quality mining, ESG and sustainability are scarce therefore leading to more resources b

eing allocated for either identifying or developing talents with such critical skills. 

Few agendas will remain as important as always such as that of succession planning & leadership development. Developing a strong pipeline of leaders is key to sustained growth and business performance. Meanwhile, employee retention has become a challenge across sectors and those with long term people development practices have found an edge. Because of this, talent management has become one of the crucial pillars to keep employees engaged and motivated. Providing career growth opportunities, new learning avenues, internal mobility and competitive compensation have become crucial like never before.

Way Forward

Going forward, at Vedanta, I take great pride being part of the nation’s development. Our diversified metals and mining business plays a critical part in India’s journey towards self-sustenance, global competitiveness, and overall progress. On the CAPEX front, our business units, have begun to invest greatly in capital expansion, and more importantly this includes investment in human capital, to bring in and build the leaders of tomorrow. I believe that the various measures we take now will help serve our larger purpose of serving the nation progressively.

(The views expressed in this authored have been curated by Praveen Purohit, Deputy Group CHRO, Vedanta, specifically for BW People publication.)