India’s executives say staff and tech are keys to growth

India’s chief experience officers (CXOs) are expecting high growth and profitability in the coming years, according to the latest HR Evolution Perspectives 2023 report.

The report, a collaboration between Darwinbox and People Matters, also found that 83% of CXOs across India say they expect revenue growth in the upcoming years, with 80% believing that organic expansion will remain an important driver of growth and profitability.

“‘Empower’ and ‘evolve’ are important themes for this landmark report. With the world of work evolving rapidly, the study helps anchor HR strategies in quantifiable insights and helps explain, in great detail, how talent leaders can build future-ready practices that help companies scale and address their growth projections,” said Ester Martinez, CEO & Editor-in-Chief of People Matters.

Some of the key findings from the report on India are:

• 83% of companies in India state a positive growth sentiment, while 78% of CXOs across the region are aiming to expand their workforce.
• 54% of CXOs in India highlight developing capabilities as their most significant talent risk. Yet only 24% feel they are adequately prepared to address this concern.
• 47% of employees surveyed across India said employee development, better benefits and pay are a must.
• 82% of CXOs say HR tech needs better talent management integration. Another 79% say that digitizing their HR systems is required.
• 63% want to improve the quality of the HR departments and another 52% want to empower managers and frontline employees.

Vikrant Khanna of Dawinbox, who has co-authored the report, said: “Undeniably, the CXOs in the region have an extremely positive economic outlook and rightly predict that the path to success is dependent on solving critical talent challenges. Hence, there will be more emphasis on strengthening the HR functions. HR teams must navigate a period of heightened employee expectations, a rapidly shifting digital landscape, and stakeholder pressure toward inclusive workplaces.

The report sheds light on these challenges and calls upon HR professionals to seize the opportunity to transform their organizations, powered by the transformative role of technology.”

He added: “The focal point of HR strategy is becoming increasingly centred on enhancing the employee experience, empowering frontline staff and managers to lead, emphasizing a robust knowledge base, and witnessing a substantial surge in the integration of technology.”

The Darwinbox and People Matters’ report is the largest study of its kind in the region, gathering responses from over 1,200 HR practitioners, 350 CXOs and around 1,500 employees.

 

Unemployment falls to six-year low

India’s unemployment rate for people aged 15 years and over recorded a six-year low of 3.2% during the July 2022-June 2023 period, according to the Periodic Labour Force Survey Annual Report, released by the National Sample Survey Office (NSSO). The figure was 4.1% in the 2021-22 period.

The unemployment rate was 4.2% in 2020-21, 4.8% in 2019-20, 5.8 % in 2018-19 and 6% in 2017-18, the data showed.

The report said: “In rural areas, unemployment rate decreased from 5.3% in 2017-18 to 2.4% in 2022-23 while for urban areas it decreased from 7.7% to 5.4%. The unemployment rate for men in India fell from 6.1% in 2017-18 to 3.3% in 2022-23, while the corresponding decrease in unemployment rate for women was 5.6% to 2.9%.”

The survey also showed that the Labour Force Participation Rate (LFPR) for those aged 15 and over increased to 57.9% from 49.8% in 2017-18. The LFPR is defined as the percentage of people in the labour force working, seeking work or available for work.

“In rural areas, LFPR increased from 50.7% in 2017-18 to 60.8% in 2022-23, while for urban areas it increased from 47.6% to 50.4%, it stated.

• NSSO launched the Periodic Labour Force Survey (PLFS) in April 2017.