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Talent Crunch In India: Employers Strategise Amidst Global Skill Shortages

In response to the talent crunch, employers are adopting various strategies to attract and retain talent, including offering increased work flexibility (86%), exploring new talent avenues (47%), and raising wages (36%)

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In the rapidly evolving landscape of talent acquisition, employers face persistent challenges in finding the right talent. According to the latest ManpowerGroup Employment Outlook Survey, nearly 4 in 5 employers report difficulty finding the talent they need in 2024. While this represents a marginal increase of -1 percentage point year-over-year, it remains nearly double compared to the figures from 2021, highlighting a sustained struggle in talent acquisition. India ranks 7th among nations facing talent shortages, with 81 per cent of employers reporting difficulty finding skilled talent.

Key highlights from the survey reveal that industries such as Transport, Logistics, and Automotive (88%), followed closely by the Information Technology sector (87%), are among the most affected by talent shortages. In response, employers are adopting various strategies to attract and retain talent, including offering increased work flexibility (86%), exploring new talent avenues (47%), and raising wages (36%). As the talent pool continues to shrink, organisations are re-evaluating their benefits packages to remain competitive. However, amidst these challenges, employers are also grappling with the need to adapt to emerging trends and technologies.

The report also highlighted the top five most in-demand skills in India include IT & data, sales & marketing, engineering, operations & logistics, and HR.

Sandeep Gulati, Managing Director of ManpowerGroup India and Middle East, underscores the significance of these findings, stating, "The survey reflects the changing world of work where companies are in the transformational phase. Employers' shift towards flexible work arrangements and exploration of new talent pools reflects a commitment to creating dynamic, inclusive, and adaptive workplaces for the future." These trends highlight a paradigm shift in technical skills, with a projected 60% change required to accommodate more sustainable practices at work. Gulati further emphasizes the inadequacy of current sustainability skills for the green transition.

Furthermore, the survey identifies key drivers shaping HR strategies for 2024. Notably, while layoffs, the great resignations, and quiet quitting are among the concerns, employers prioritise recruiting for skilled roles and employee well-being. These priorities overshadow initiatives related to diversity, equity, and inclusion (DEI) or potential economic downturns. Challenges associated with AI adoption also loom large on the horizon, with employers citing difficulties in attracting candidates for AI roles, training existing staff, and defining suitable roles to leverage AI technology effectively. As organisations navigate these challenges, by addressing talent shortages and embracing evolving skill sets, employers can position themselves for sustained growth and competitiveness in 2024 and beyond.


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manpower group skill shortage talent hunt

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