Country's Talent Decline Calls for Major Reforms
HYDERABAD: The country's talent landscape is confronting major hurdles, as indicated by recent studies showing a decline in key metrics.
The IMD World Talent Ranking 2024 places India at 58th globally, sliding from 56th in 2023 and 52nd in 2022. The decline is mainly due to a fall in ‘readiness’ and ‘investment and development’ scores, which dropped from 18 to 25 and 61 to 66 over the last two years.
“There is an urgent need for India to strengthen its talent development and investment strategies to maintain competitiveness,” senior human resources executive Mainaz Hussain told Deccan Chronicle.
According to the Deloitte India Talent Outlook 2024, the average salary increment is projected to dip slightly to nine per cent this year, down from last year’s 9.2 per cent.
Despite a positive sentiment in some sectors, companies are tightening performance evaluations. The percentage of employees expected to be promoted has also dropped from 12.3 per cent in 2023 to 11.5 per cent in 2024.
Brijesh K., an HR consultant, noted, “Due to various factors, the focus is now on upskilling, with a stronger emphasis on performance. Only top performers are likely to get substantial increments.”
Adding to the concerns, Aon's Campus Study Report 2024-25 reveals a 30 per cent drop in hiring of entry-level graduates compared to the previous year. While sectors like financial services and consumer goods are optimistic, many companies have gone in for hiring freezes. Amid these, there has been a 47 per cent increase in hiring for chartered accountants (CA) and 46 per cent for chartered financial analysts (CFA). Campus compensation remains largely unchanged, with variable pay between 11 and 13 per cent.
“The job market is becoming increasingly competitive, leading to higher early attrition rates, particularly among MBA graduates,” explained Hussain.
She attributed these trends to 'economic recalibration' post-pandemic.
"The skill gaps between graduates and industry needs have widened, causing dissatisfaction among employees. The rising work hours for salaried employees, along with stagnating campus compensation, are creating burnout and job dissatisfaction,” added Brijesh.
He suggested focusing on work-life balance, mental health support and transparent career growth opportunities to retain talent.
To address these issues, HRs like him advocate robust employee value propositions and a transparent, supportive work environment to improve organisational culture.
“Aligning educational institutions with industry needs and fostering a learning-driven culture are the forward steps,” added Suhasini Dodlu, placements cell in-charge of a private college in the city.