Bengaluru: Indians companies are likely to hire more people this year than other counties as business confidence picks up in Asia’s third-biggest economy, according to an American Express survey of global finance leaders.
83% of Indian executives surveyed expect their companies to hire more employees and most of the respondents expect employment to grow by over 10% to 30%, said the report released on Wednesday.
In comparison, executives across the globe expect their companies’ headcount to increase only by 9% on an average in 2016.
Even though Indian executives anticipate a greater increase, their challenge lies in finding this talent.
7 out of 10 Indian executives polled agree that their companies’ performance goal has been affected by inability to hire talent especially in sales and marketing.
Not just that, 60% said their companies have been affected due to the difficulty in finding highly skilled and specialized talent to meet their growth targets.
“As the companies expect increase in hiring, they also consider retaining existing talent a major task. From improving working environment to rotating employees through various departments, companies are planning to introduce measures towards this direction and trying to keep their attrition rates at the lowest levels,” said Saru Kaushal, country business head, global corporate payments, American Express.
Majority of executives find compensation to be the best tool to retain talent as 60% of those surveyed expect to raise wages or salaries in order to attract or retain employees.
Besides compensation, 53% of executives said they are also improving the working environment by re-configuring office spaces, among others. Indian executives expect to rotate key employees through different functions or departments in order to retain them.
60% of the executives said they will also look at moving positions from overseas to domestic locations in order to meet their staffing needs.
Nearly half of the Indian executives surveyed also felt that their chief financial officers needed to acquire better networking and interpersonal skills to assume leadership roles.