81% of Indian CEOs see talent shortage as biggest threat: PwC
New Delhi: About 81 percent of Indian CEOs see unavailability of key skills as the biggest threat to their growth prospects and wish to change their organisation's talent strategy in the next 12 months, a report says.
According to a PwC study on HR, Indian businesses intend to strengthen their leadership pipeline by developing the next line of leaders, and a majority of Indian CEOs have already deployed a variety of talent development strategies with varying levels of success.
"The war for good quality talent has been intensifying, but the levers of unrestricted career growth and uncapped remuneration are no longer available as aids to hire," PwC India, executive director ? People and Change, Padmaja Alaganandan said.
The survey further added that 47 percent businesses plan to increase their focus on workplace diversity and inclusion.
"Strengthening the leadership pipeline is a huge business prerogative. With increasing focus of boards and public on top executive pay, any change in the reward philosophy may have implications on retention of top leadership," Alaganandan said.
To improve operational efficiencies, HR will need to drive a more efficient but not necessarily a leaner structure across the organisation, the report said.
Around 86 percent of Indian CEOs feel that employees including trade unions have a significant impact on their business strategy and 94 percent of them would like to increase their engagement with them.
Improving operational efficiencies continues to be a top priority for 36 percent of Indian CEOs with 53 percent of them intending to initiate cost saving initiatives in the next 12 months.
The report further said that more than half of Indian CEOs (51 percent) surveyed expect to increase headcount (by 5 percent or less), but only 29 percent consider filling talent gaps as a key investment priority.