Attracting, retaining talent biggest challenge for India Inc in '22: Survey

Companies have been experiencing challenges in attracting and retaining talents since the outbreak of Covid pandemic, with 78 per cent organisations saying it is the biggest, according to a survey

Companies have been experiencing challenges in attracting and retaining talents since the outbreak of Covid pandemic, with 78 per cent organisations saying it is the biggest hurdle this year, according to a survey.

Over the past two years, the number of organisations in the country experiencing difficulties attracting and retaining talent has increased manifold, with 78 per cent experiencing talent attraction challenges this year and 64 per cent facing pressure in retaining employees, according to the WTW ((Willis Towers Watson) 'Reimagining Work and Rewards Survey'.

While fewer employers reported problems attracting (29 per cent) and retaining (26 per cent) talent in 2020, these figures rose to 68 per cent and 73 per cent, respectively, in the second half of 2021, it said.

While the number of firms facing retention challenge dropped slightly in 2022 to 64 per cent, those facing talent attraction challenges are expected to grow to 78 per cent, it added.

The WTW 'Reimagining Work and Rewards Survey' was carried out among 51 companies and 7,23,000 employees across sectors, including IT and telecom, manufacturing, general services, financial services, energy and utilities, and healthcare.

The survey revealed that 85 per cent of of employers cited challenges in attracting or retaining talent with digital experience, while 74 per cent reported a similar challenge with positions in sales.

Similarly, those in markets such as Singapore (84 per cent), Philippines (77 per cent), Hong Kong (75 per cent), Japan (71 per cent) and China (60 per cent) also face a challenging task in attracting or retaining employees with digital skills, it noted.

Asked when they expect the pandemic to recede enough so that the organisation reaches its 'new normal' in terms of staff returning to the workplace and ending temporary pandemic-related policies and procedures, 54 per cent of the respondents indicated that they were not there yet.

In fact, 12 per cent expect that they will reach a new normal state only in 2023 or even later, it stated.

In terms of flexible work arrangements, the survey found that the proportion of employees who worked primarily remotely or with a mix of onsite and offsite is up 54 per cent now compared to 7 per cent of employees three years ago.

As many as 47 per cent are expected to remain in a primarily remote-hybrid mode in three years time, it said.

"Companies in virtually every industry are now under significant pressure to adapt to a new business environment and sweeping workforce changes. Businesses need to prioritise employee retention and re-examine business practices that lead to turnover to tackle ongoing pressure points they face in retaining and attracting talent," WTW Consulting Leader India, Work and Rewards, Rajul Mathur added.

Organisations recognise that addressing these areas will require new capabilities in human resources and more than half (58 per cent) of employers indicate that the capability to build new strategies around work and rewards is one of the most important ones.

Sixty-one per cent of organisations saw a need to create a human-centric, holistic and purpose-driven employee experience, and 58 per cent indicated that there is a need to build a talent ecosystem that encompasses alternative work models, it said.

"Companies need to take tangible actions to win the talent war. These include resetting their total rewards philosophy and strategy for the new hybrid work environment, setting an overarching career enablement strategy, identifying new sources of talent based on more flexible approaches to work and resdesigning jobs. The more attractive a company is to its employees, the more they will recommend it as a great place to work," Mathur added.