Vipul Shah: Can India bridge the gap in global manpower shortage?

Globalisation has today forced many corporations to relook at their talent management practices. This has become a necessity as we are witnessing the change in orientation of many critical activities of global corporations which were previously vertically integrated and locally concentrated. For instance, R&D and innovation activities are no longer considered core activities to be retained by companies’ headquarters. These Centres of Business can now be virtually anywhere. Organisations can now look forward to capitalise upon learning from a globally dispersed and mobile workforce operating in various centres of excellence scattered across the globe. Managing such diversity in workforce appears to be the new norm today.
 
This also implies that challenges that businesses face today not only revolve around managing international competition but also around crafting and executing strategies which synergise their global operations. This is especially so at a time when companies are operating in highly divergent and fast-moving markets. Corporations need to ensure that they have a strong globally diversified talent pipeline in place that helps them leverage the skills and capabilities to stay competitive. They need to create platforms to transfer and exploit competences across operations on the global stage.

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Several experts point out that such challenges are only likely to grow in near future. One such challenge is the unfavourable demographics in developed countries which can lead to labour shortage. Accenture in its 2010 report had estimated that more than one-third of the chemical industry’s engineering and construction workers in developed countries are to retire in next five years. China, which has a reputation for having an immense labour pool, is also projected to lead a shrinking workforce in coming years. Accenture in its report also had pointed out that the proportion of science and engineering graduates in many developed countries has been declining for some time and university system have been producing more media studies graduates than chemistry and physics graduates combined.
 
India is placed comfortably to view these shifts as an opportunity to propel the growth in the chemical industry. According to the Government of India’s Economic Survey 2011-12, the average Indian will be 29 years of age by 2020, compared with 37 in China and the US, 45 in Western Europe, and 48 in Japan.
 
However, India has its own challenges to grapple with-youngsters who see the chemical industry as a part of the ‘old economy’ and consider the ‘services’ industries to be more attractive, offering multiple career options. These youngsters also tend to seek out an open culture, flat hierarchies, flexible operating styles and a caring environment. 
 
Hence, it is imperative that organisations today shift from a traditional ‘one-size-fits-all’ style of management to one that is more inclusive. This can go a long way in positioning the chemical industry as an attractive place to work and grow. In order to retain and nurture this talent, corporations need to inculcate the culture of inclusiveness, ensure robust induction plans, invest in people and create opportunities for growth within the company to fulfil career aspirations.

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But before this, there is another fundamental challenge which needs to be taken care of - youngsters are reluctant to pursue a career in science, for variety of reasons, such as inadequate infrastructure, limited growth opportunities, rewards and recognition, unattractive work conditions, etc. There is a need for industry and academia to join hands to make science a lucrative profession and prepare fresh graduates in order to meet the requirements of the ever evolving demands of the corporate world.
 
As per a 2009 study by R&D Magazine, India’s share in R&D spending to the total global R&D spending stands at 2.1%, while the share of China is 12.5%. There is clearly a need to increase spending on R&D as we move forward to become a knowledge economy. Indian industry can make a huge difference here!
 
India with favourable demographics needs to capitalise on the above trend and aim to become a major player in the chemical industry, globally. In the coming years, India can grow from being a minor player on the global stage into a key contributor in the value chain with its knowledge and human capital and innovation capabilities.
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Vipul Shah is the President, CEO & Chairman of Dow India