As businesses adapt to rapid technological advancements and shifting workforce dynamics, HR leaders are redefining priorities to ensure sustained growth.

The findings of Mercer’s Global Talent Trends Report for the Indian market reveal the top challenges and priorities shaping the future of work. Based on insights from HR leaders across industries, the report highlights the critical need for people management, AI integration, and workforce resilience to drive sustainable business growth.

Key findings from the report

HR leaders in India are prioritising improving people managers’ skills and designing talent processes around skills in 2025. Workforce planning and AI-driven automation are also key focus areas for them this year.

According to Mercer’s Global Talent Trends Report, organisations need to be great at three things: Designing Work, Developing Skills, and Deploying Talent to remain competitive in an ever-changing world. Many are strengthening their skills foundation (job architecture, skills taxonomies, etc) to accelerate and scale, and 75% are focusing on redesigning the work itself

The report further highlights that the major focus remains on being skill powered organisation. 1 in 5 organisations report that difficulty filling open positions has significantly impacted business performance, leading to higher recruitment costs and project delays

Despite the promise of generative AI, only 38% of organisations regularly use it, highlighting the gap in adoption and workforce readiness

Pay transparency and equity remain key concerns, with only 52% of HR leaders confident that their organisation is effectively addressing pay fairness. Just 52% of companies have made meaningful progress in designing work with employee well-being in mind, emphasizing the need for a more holistic approach to workforce resilience

Commenting on the report, Mansee Singhal, Careers Leader India, Mercer, said that “Workforce well-being is no longer just a benefit—it’s a business imperative. Organisations that prioritise mental health, flexible work models, and employee experience will see long-term gains in engagement and retention. Investing in holistic well-being strategies will be key to sustaining workforce productivity. Additionally, enhancing employee skills plays a significant role in unlocking human potential in a machine-augmented world. Cultivating digital first culture where people can thrive is a growing need.”

Nilanjana Dutta, Talent Strategy Leader, Mercer India, states that, “The integration of AI and skills-based talent strategies is reshaping the future of work in India. Companies must focus on developing adaptive workforce models where talent is continuously reskilled to meet evolving business demands. AI can enhance workforce planning, but human decision-making remains central to long-term success.”