to be written
There is a wave of positive sentiments across the industry with the recent reforms, especially the retail and insurance sector. Industry is optimistic and hopes that phase of inertia is over and it is time for action.
The upswing is more visible in retail and insurance where positions that we on hold for long are now open. The reforms will result in expansion which will further result in increased demand for talent. The point to be noted is, with international players coming in, quality of products and services will be of paramount importance. To gain an edge, companies need to hire quality talent. The irony of India is that despite a burgeoning population, we have an acute talent crunch, and the demand-supply gap will get deeper as new players come in. The good news here is that actual results will show only in two years. Companies which are foresighted can utilize these two years to train and develop people as per their requirements.
Despite the talent gap, I do not believe that there will be a substantial escalation in wages because wages are a larger function of the overall economy. There will not be an immediate impact on wages, however eventually we will see a rise. Companies need to invest in people in terms of engaging, developing and managing talent to prepare for the change, which will happen although it may take time.
Retail, insurance and aviation are industries that will need an increased manpower on the front end, and these numbers are not available at present. To achieve sustainable progress companies need to invest in building grass root level capacity, which means, long term investment in skill development and certification.
People will be the differentiator and HR needs to be aligned to the business to ensure that optimum productivity is achieved for every buck that is spent. HR needs to play a critical role, and will be seen as a business driver because the chances of failure will be high if the people strategy does not match up to the demands of the business.