Despite the number of job openings across all sectors, Indian companies are finding it harder to fill mission-critical positions to due to severe lack of talent. It is becoming more and more difficult to find a suitable person to fill in positions in all the sectors starting from e-commerce, R&D, sales, IT, Outsourcing industries to even the government bodies like; the Indian healthcare system and the Indian diamond processing industry. The companies are willing to pay boosting wages, however, the skill shortage has led to a vacuum in the companies.
India Inc, as a whole, is experiencing explosive growth but finding the correct manpower is becoming a hurdle in the path of this growth. The main reasons for talent crunch in India are suggested to be lack of talent availability and high level of attrition. Companies across the globe are looking at India as the source of cheap and abundant labour force creating unprecedented demand for workers with the right leadership and technical skills giving them the opportunities to work abroad. This, in turn, is affecting our domestic growth as the lack of skilled workforce has fuelled an explosion in wages, especially in tech and outsourcing sectors.
Most of the recruiters find it very challenging to find talent with relevant experience who fit in the rigid job requirement category. Business standard research for the e-commerce industry says that some of the top executives are spending over 40% work hours on recruitment. It is also mentioned that firms like FutureBazaar have to go through interviewing over 150 software engineer candidates to hire one that suits the bill. It is observed that finding man-power with relevant internet experience is growing to be a major challenge.
The Indian Outsourcing industry is facing a grave threat of attrition along with the shortage of skilled and educated workers. The attrition rate has seen a phenomenal increase of 55%, of which there is a significant relocating occurring in the mid and senior management levels. However, it is also observed that Indian organizations are adopting a global way of working, which in turn has made them more competitive and has changed the pattern of work and skill set required for a certain job role. This has created a serious gap of knowledge, information and skills amongst the workforce already in place in these industries.
The sixth annual talent shortage survey by global human resource, consultancy and staffing firm Manpower Group claimed that 67% of the employers are struggling to attain the critical-level hiring target. In India, Talent scarcity is increasing and the reason behind the same is considered to be the lack of skill set required for a certain leadership role. Across companies, positions for research and development, sales manager and IT staff are found to be facing maximum difficulty while recruiting. Whereas, the 5th report had suggested that the industry faced lack of talent in cleaners, domestic staff, insurance segment, including qualified brokers, technicians, customer service representatives, customer support and quality controllers.