India, September 22, 2015: A new study from leading specialist recruitment firm Michael Page tracks the changing and challenging role of HR globally. The results are based on extensive data collected from over 2,500 HR managers in organisations ranging from SMEs to blue-chip brands in a cross-section of industries across 65 countries
The standout finding is that the HR function continues to undergo a radical shift. From being regarded mainly as an administrative function few years ago, HR is becoming a strategic partner, aligned ever more closely with the business and focused on recruiting, developing and managing talent, which is the key to organisational success.
More than three-quarters (76%) of senior HR leaders in India directly report to the highest levels of management (CEO/CFO/Chairman), while the global average stands at 63%. With 12% Indian organisations listing diversity and inclusion as a priority (only 4% globally), the survey notes that the Indian HR ecosystem has progressed from using diversity as a mere buzzword to factoring it in as a prerequisite to overall business success.
For Michael Page India, Senior Managing Director, Sebastien Hampartzoumian comments: “The survey takes an objective look at the challenges and priorities of senior HR managers and leaders across the world. The Indian market is advantageously placed to welcome HR’s new role as a strategic partner. The future looks promising as India Inc. compels the HR function to transform and establish itself in the same league as its global counterparts.”
The full report, Putting People First – How HR is at the Forefront of Business Growth and Transformation, is available from Michael Page News & Research Centre
The race for talent is back on
The report provides compelling evidence that organisations are gearing up for a new "war for talent":
- 66% of Indian HR leaders expect their workforce to increase over the next 12 months (48% globally)
- 45% of organisations in India have increased their recruitment budget (27% globally)
Talent management ranks at the top of HR priorities
Asked to identify their most pressing priorities, Indian HR leaders once again showcased their focus on talent:
- Talent management – 51% (33% globally)
- Talent acquisition/recruitment – 45% (32% globally)
A mixed picture on recruitment plans
The survey brings to light regional differences. For example, half of the organisations in India, South East Asia (Indonesia, Malaysia, Singapore and Thailand) and Turkey rate talent management among their top three HR priorities for the next twelve months, compared to 33% across all the countries in the survey. This is primarily due to rapid economic growth and a less established HR function that must evolve quickly for this upsurge to be sustainable.
The survey also revealed that tracking recruitment efficiency is more common in India, China, South East Asia and Turkey. This suggests that recruitment will become an even more pressing HR concern when the global economy picks up again. Interestingly, fairly contrasting countries like Germany and India share talent acquisition and recruitment as a top HR priority.