CHRO Radar: The View from India

Vinita, what’s the market like in India right now?

Given that GDP growth has been steady for the past few years, the economic outlook in India has been positive. There has been robust growth across manufacturing and services. As a result of which, the need for talent continues. The government policy has played a pro-economy role causing resilience and independence. India ranks much higher on “ease of doing business” index by the World Bank. The government policies, coupled with the thrust on digitization make it an attractive market for FDI (foreign direct investments) and FPI (foreign portfolio investment) inflows.  

So what impact is that having on the talent landscape?

Given steady growth and positive market indicators, there has been robust demand of talent across manufacturing and services sectors. Apart from traditional businesses, there has equally been a surge in the startup economy, with the country being home to much over 100 unicorns.

Whilst there is need for talent across various industries, as well as types of companies i.e. startups, Indian companies, and MNCs,  the talent landscape has been going through transformation – with AI adoption, focus on upskilling, and digitizing of businesses. 

Companies are focusing on skill based hiring – where we are seeing significant opportunity for Digital / tech talent that will pave the way for future growth / transformation. This talent finds equal demand in traditional and tech-enabled startup businesses. 

Equally, a large number of Global Capability Centres (GCCs) are being established in India today. These Centres are becoming the nucleus of specialized talent for large global corporations – thus driving business efficiencies and growth for MNCs – from India. 

Additionally, India is paving the way for energy transition – thus sectors such as renewable energy, electric mobility, automotive are seeing growth with an emphasis on specialized talent that can help with the energy transition agenda for these businesses as well.   

All in all, the need for talent is high and the opportunities are not only creating a positive employment outlook for local talent, but also for the Indian diaspora globally that may consider returning to India during this phase of growth.

What does all of this mean for the CHRO market?

Given the growth / evolution phase organizations are in, the CHRO’s role has evolved into a highly strategic one with significant emphasis on enabling organization growth by attracting the right talent, reimagining organization structures, and the use of technology and the role that will play in the future of the workforce. 

An important topic that is on the minds of most of our clients is upskilling their workforce i.e. making the organization future ready. How is technology like AI going to change the makeup of your workforce in the future? What talent or skills are you going to need five years from now? How do you continue to sustain growth not just during the growth phase, but in your sustenance phase?

Similarly, as most organizations are reimagining their businesses, the role of the CHRO is critical in creating a value proposition for attracting talent high in demand to their organizations. Thus factors that come into play are attracting the Indian diaspora/expats into the country. Specially in roles related to manufacturing, R&D, etc.

Talent Acquisition is a key agenda item for CHROs today. However the contours of acquiring talent are changing – there is an emphasis on strategic talent acquisition – anticipating what the organization may need a few years down the line and how that will influence the talent strategy today,

These are the big questions every organization is facing right now. Therefore the need is for a seasoned, strategic CHRO who can think five to seven years ahead, and challenge status quo.

But if everyone’s looking for an experienced CHRO, are there enough to go around?

In one word: no. As you’d expect, the pool of experienced CHROs is small. And if you’re looking for someone with experience  in a specific domain or sector, then that pool becomes smaller. So in order to get a seasoned CHRO, you may need to look further afield, beyond your own industry or sector. 

Whilst hiring a tried-and-tested CHRO with a proven track record may feel safer than taking a chance on a first-timer, it’s also important to consider the knock-on effect on innovation, diversity of thought, and out of the box thinking. Put simply, by hiring a safe pair of hands, could you  be stifling someone who could bring fresh ideas and new ways of doing things? Some organizations have also brought in business leaders who have a penchant for talent, into the role of the CHRO. The idea is for this leader to marry the business agenda with the talent agenda seamlessly.

There’s no simple, one-size-fits-all answer. Every organization will need to work this out for themselves, in their own context.

So what should organizations be doing to get their HR function future-ready?

Focus on leadership that drives innovation and diversity of thought. There needs to be a strong emphasis on developing the HR function in a way that it is positioned to prepare the organization for its future.

Equally important is prioritizing your CHRO succession planning. How can you help your CHRO to equip the people immediately under them—or what we call the n minus one layer—with the requisite skills and experience to step into the role of CHRO when their time comes.

One way we do that is by using our Leadership Span methodology to help potential CHROs of the future map out their professional development journeys, and develop the skills they’re going to need to be ready to lead that future version of their organization.  

Typically, you’ll see that people at this talent level have spikes in certain areas of HR: business partnering, learning & development, compensation & benefits, and so on. So, how can organizations proactively rotate its talent across various subfunctions of HR, thus preparing them for a generalist management role in the future.