Resetting Horizons Human Capital Trends 2013 - … Talent Trends (India)_v3... · Resetting...

Resetting HorizonsHuman Capital Trends 2013

May 2013India Editionwww.deloitte.com/in

2

Contents

Foreward: India country report 3

Global human capital trends 2013 5

Detailed findings 6

Contacts 16

Foreward:India country report

We are pleased to share with you a summary of the market trends and priorities that are driving human capital decisions for corporate leaders across India.This specially tailored report compares the Indian results to the global and APAC results of our comprehensive survey of more than 1,300 business leaders and HR executives in 59 countries comprising the world’s major economic regions.

Deloitte in India in partnership with the National Human Resource Development (NHRD) Network conducted an online survey in late January this year to rank the key human capital trends in the Indian marketplace. The

survey sets out to determine the current and emerging trends that play a significant role in global organizations today. Accordingly, we have categorized these trends as, either leading and highly relevant today, rising and relevant in the next one to three years, emerging in three or more years from now.

The Indian report has been designed to complement Deloitte’s 2013 Global Human Capital Trends report, “Resetting Horizons.” We believe both the reports will inform your organization’s leaders on the issues impacting companies throughout our country and around the world.

Kamal SinghDirector GeneralNational HRD Network

P. ThiruvengadamSenior DirectorDeloitte Touché Tohmatsu India Private Limited

4

Resetting horizons Global human capital trends 2013

Looking beyond continued uncertainity, the world’s leading organizations are raising their sights, and pivoting from the great recession to the new horizons of 2020 with a focus on talent, globalization, growth, and innovation. This report introduces 13 global trends that

are driving critical business and human capital decisions. The report provides information on these trends across global markets through results of a survey of over 1,300 business and HR professionals from 59 countries.www.deloitte.com/hctrends2013

Exploration Leadership.next: Debunking the superhero mythYesterday’s leadership theories are not keeping pace with the velocity of today’s disruptive marketplace. Organizations are seeking a new model for the age of agility. www.deloitte.com/leadershipnext

How boards are changing the HR gameTo seize new opportunities for sustainable growth and manage heightened risks, boards of directors at high-performing organizations are pulling CHROs much deeper into business strategy—and far earlier in the process. www.deloitte.com/boardschangingHR

Leading talent from the BRICIn an era of pervasive globalization, organizations are building multi-directional talent networks that are not only geared toward existing markets, but can also power new emerging markets. www.deloitte.com /leadingfromtheBRIC

A global diversity dividendIn the midst of ongoing global expansion and a worldwide shortage of critical talent, companies are stepping up efforts – at very different speeds and levels of investment – to recruit and retain a workforce diverse in both demographics and ideas. www.deloitte.com/diversitydividend

Workplaces of the future: Creating an elastic workplaceWorkplace flexibility has become table stakes for attracting and retaining employees. Now companies must align their flexibility strategy with their core strategy to realize the benefits. www.deloitte.com/workplacesofthefuture

The open talent economyJump ahead to the year 2020. Half the people you rely on don’t actually work for you and that’s a good thing—if you’re ready. www.deloitte.com/opentalent

Resetting Horizons - Human Capital Trends 2013 India Report | 5

Execution Organization accelerationFaced with tougher, more numerous challenges, today’s organizations are demanding more from their change initiatives by pursuing strategies that are customized, precise, and sustainable. www.deloitte.com/orgaccelerationtrend

The war to develop talentThe talent management pendulum is swinging from recruitment to development.www.deloitte.com/developtalent

Transforming HR to meet new business prioritiesHR transformation efforts are continuing to shift their focus to business priorities, concentrating on areas such as talent, emerging markets, and the HR organization. www.deloitte.com/transformingHR

Branding the workplace: Innovating the talent brandSocial media has erased whatever lines used to exist between the corporate brand and the talent brand. They’re two sides of the same coin. www.deloitte.com/talentbrand

The aging workforce: Finding the silver lining in the talent gapOrganizations can capitalize on shifting retirement patterns to help narrow their talent gap.www.deloitte.com/agingworkforce

The performance management puzzleSome say traditional ways of managing employee performance are irrelevant in today’s fast-changing work environment. Others argue that these methods drive accountability and differentiated compensation. Both are right. www.deloitte.com/performancepuzzle

Human capital analytics: Thinking like an economistIncreasingly, many HR leaders have to answer questions that have an economic issue at their core—the allocation of a scarce resource called talent.www.deloitte.com/HCeconomist

6

India human capital trends 2013:Detailed findings

In late January and February this year, Deloitte's Global Human Capital practice conducted a survey across 59 countries in the three worldwide geographies – Asia Pacific, the Americas and EMEA – to assess the relevance and currency of 13 global Human Capital trends. In India, Deloitte partnered with the National Human Resource Development Network (NHRD) to conduct this online survey to HR leaders and NHRD members in India and gauge perspectives on these top talent and HR trends. C-suite, business and HR leaders from across industries participated in this survey to rank the Human Capital trends which were identified by Deloitte through interviews with analysts, executives, and partners around the world. A total of 234 responses were received from respondents across India for this survey of the global Human Capital trends.

Our survey findings reported that all 13 trends were relevant to the Indian context with almost all of the trends relevant or highly relevant in the next 1-3 years. Of particular notice was the observation that the top trends globally, in each region, and most countries around the world were a common subset of the 13 trends. While the sequence of the top five trends differed, the top five, in this survey were consistent worldwide.

In addition to the talent trends, the survey also measured the perception of respondents on the current business scenario in India. A majority of the respondents – globally, including India - participating in Deloitte’s survey are anticipating “moderate” growth in the economy as compared to 2012. However, a strong majority of Indian executives (74%) appeared “more” optimistic regarding the growth anticipated this year as compared to their global counterparts (51%). Further, 22% of the respondents in India – a full 10% ahead of global respondents – anticipate strong business growth this year as compared to 2012. This may imply a lesser impact of the global downturn to the Indian economy as only 7% of Indian respondents report slower growth this year as compared to 17% of global respondents – again bringing up a full 10% gap between the results.

Based on our research, two categories of trends emerged – Exploration and Execution. Exploration trends are potential new challenges and directions for the Human Capital agenda. These six trends represent topics which we suggest require attention as potential new priorities and new directions. The seven

“execution” trends on the other-hand represent trends that are largely familiar to HR and business executives but we suggest require a fresh look in terms of how they are being approached. In “execution” trends the focus is on a fresh look at these familiar priorities and challenges

Top leading, rising and emerging trends in IndiaIn understanding the future Human Capital challenges, it is important to business and HR leaders to understand the changing relevance of the evolving portfolio of trends. In our analysis for India, we categorize the trends in three groups: leading (highly relevant today), rising (relevant in the short term, the next 1-3 years), and emerging (relevant in the medium term, the next 3-5 years).

Keeping in mind that almost seven out of every ten India respondents report expectations for strong to moderate growth in 2013 – it is useful to understand their view of front burner and back burner trends and priorities. India has been on the center stage of the global talent landscape; it is now to be seen whether or not India can take the lead in addressing global talent challenges including the leadership deficit.

Leading trends:The survey identified the following six trends that are currently shaping the HR and talent programs for India business leaders. • Leading Talent from the BRIC• Leadership. Next• How Boards are Changing the HR Game• The War to Develop Talent • Organization Acceleration• Transforming HR to meet new business priorities The top Human Capital “Exploration” trends in India begin with the focus on leading global businesses from the BRIC nations and the importance of next generation leadership. At 90%, “Leading talent from the BRIC” is the top trend followed by “Leadership.Next” at 87%.

Focusing on execution, the top two trends are “The War to Develop Talent” and “Organization Acceleration.” The challenges of developing and growing the talent companies have and also preparing and leading continuing and accelerating change are clear front burner challenges.


India top human capital trends 2013

An interesting change in the survey responses is the perception of HR in Indian organizations. HR is now increasingly viewed as a “business partner” beyond being considered a support service function in the organization to administer HR programs. “How Boards are changing the HR Game” and “Transforming HR to drive new business priorities” also appears as top trends as identified by Indian respondents. These two trends underscore both the interest of Boards directly in HR and talent issues and also the view that HR must continue to transform and focus on business priorities including global growth and market entry and innovation.

Rising trends:More than eight of ten respondents that participated in the survey agree that “Branding the Workplace” (83%) is a rising trend as Indian companies are recruiting from the same talent pool and in order to attract, develop and retain the right talent – a strong and differentiated employer brand is imperative.

Survey participants also agree that “Open Talent Economy” (77%), “Workplaces of the Future” (76%), “Performance Management Unleashed” (76%) and “Human Capital Analytics” (75%) would be the rising trends on the agenda of Indian companies in the next three years.

Emerging trends:Emerging trends are priorities and challenges which business and HR leaders expect to be relevant in the next 3-5 years. While they are not the focus of attention today, emerging trends do require some focus and attention. Further, in a rapidly changing business environment, trends that are on the back burner today may be on the front burner tomorrow so being prepared for all of these trends needs to be considered. Almost seven out of ten respondents ranked the “Diversity Dividend” (76%) and the “Aging Workforce” (74%) as the trends that are emerging now and will play a more prominent role in the years to come.

The demographics of Indian companies are changing and in the future, as diversity increases in the workforce, it will be important for companies to ensure they are investing and developing the broadest portfolio of talent and leadership. While India has access to a growing young talent pool, the challenging shortages of key functional and leadership skills may point to the need to focus on the broadest portfolio of multi-generational workforces in Indian companies in the coming years.

Leading Trends

Rising Trends

Emerging Trends

Exploration Execution

76%

76%

77%

86%

87%

90%

A New Diversity Dividend

Workplaces of the Future

The Open Talent Economy

How Boards are Changingthe HR Game

Leadership.Next

Leading Talent from the BRIC

74%

75%

76%

83%

88%

91%

91%

The Aging Workforce

Human Capital Analytics

Performance ManagementUnleashed

Branding the Workplace

Transforming HR to MeetNew Business Priorities

Organization Acceleration

The War to Develop Talent

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India and Asia Pacific and Global top trends — A comparisonThe top talent and HR trends in India largely concur with the trends identified in Asia Pacific; there are a few variations in the order of priority. • Respondents from Asia Pacific rank “Leadership.Next”

as the top priority today, while respondents in India rank this trend at the third position.

• “Organizational Acceleration” is ranked as a second top talent trend in Asia Pacific, while respondents in India rank this trend at a fourth position.

• “The War to Develop Talent” is the third focus of respondents in Asia Pacific, while respondents in India rate this trend as well as the transformation of HR to meet new business priorities as the “top” talent trends in their country.

“Branding the Workplace” is a top talent priority for Indian firms while it just misses the top talent trends for Asia Pacific.

“How boards are changing the HR game” - symbolizing a shift in the perception of HR’s role by the organizations makes it to the top six talent trends in India (#6) and APAC (#5). The perception about HR is changing in the region.

The one top trend that is not common to India and APAC is “Aging Workforce”. At 48%, this is at number 6 for the region – driven by responses in Japan and China – but does not feature in the India list. The focus on the demographic dividend and the young India workforce put the “Aging Workforce” in the emerging trend category in India but in the leading trend category across Asia Pacific.

This trend is highly relevant todayThis trend is not applicableThis trend is relevant 3 years and beyond

This trend is relevant in the next 1-3 years

India Top Trends

32%

27%

32%

26%

21%

23%

11%

13%

8%

11%

10%

7%

3%

4%

2%

2%

2%

2%

How boards are changing the HR game

Branding the workplace


Leadership.Next

Transforming HR to meet new business priorities

War to Develop Talent

Asia Pacific Top Trends

30%

31%

29%

21%

30%

27%

13%

13%

7%

10%

13%

8%

8%

8%

4%

4%

4%

6%

The Aging Workforce



Leadership.Next



Global



Leadership.Next



55%

56%

59%

61%

68%

68%

48%

49%

61%

65%

53%

59%

54%

57%

58%

61%

61%

27%

28%

28%

25%

23%

11%

11%

8%

8%

11%


India’s trends also are aligned with the global trends – however, there are differences in the order of priority as also identified in the comparison with the Asia Pacific results. Perhaps most significantly, the top trends globally are the same as the top trends in India with the addition of “Branding the Workplace” in the leading trends here.

While respondents in Asia Pacific and global regions concur with the ranking of the top talent trends, in India, the respondents rank the “War to Develop Talent” and “Transforming HR to Meet New Business Priorities” as the “top” priorities. These trends are listed on the

second and fourth position respectively for Asia Pacific and Global regions citing differences in the perception of Indian business and talent leaders with their global and Asian Pacific counterparts.

Also, global executives did not identify “Branding the Workplace” as top five challenge but a rising challenge, while employer branding appears to be a higher priority for Indian business executives surveyed. A well-defined employee value proposition that is evolving and focused on attracting employees and developing and retaining them is a growing priority for Indian companies.

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Trends by company sizeWhen comparing the responses from Indian executives from different size companies, the top trends are generally similar, with some exceptions, and variation in the order.

“Leadership.Next” and “Organization Acceleration” make it to the top two trends for small firms but for larger firms these do not feature in the top three priorities. “The War to Develop Talent” is the third priority for small firms while it is the second and first priority for mid-size and large firms respectively. “Transforming HR to Meet new Business Priorities”

This trend is highly relevant todayThis trend is not applicableThis trend is relevant in the next 1-3 yearsThis trend is relevant 3 years and beyond

How Boards are Changing the HR Game


Transforming HR to Meet New Business Priorities



Leadership.Next

49%

51%

59%

60%

62%

67%

34%

32%

22%

29%

25%

18%

14%

13%

14%

8%

11%

12%

3%

4%

5%

3%

2%

3%

Top Trends for companies 1001 – 5000 employees


Leadership.Next





61%

63%

66%

70%

72%

84%

28%

30%

31%

25%

23%

11%

11%

8%

3%

3%

5%

5%

2%

A New Diversity Dividend



Leadership.Next


49%

50%

51%

59%

64%

76%

41%

20%

33%

19%

27%

14%

7%

17%

13%

16%

9%

3%

13%

3%

7%

9%

1%


India Top Trends

Top Trends for companies > 5000 employees

Top Trends for companies < 1000 employees

32%

27%

32%

26%

21%

23%

11%

13%

8%

11%

10%

7%

3%

4%

2%

2%

2%

2%




Leadership.Next



55%

56%

59%

61%

68%

68%


Trends by industrySurvey responses in two industries, Technology, Media and Telecommunications and Manufacturing were large enough in the survey sample to provide perspectives on these two sectors relative to the cross industry responses. As the table above summarizes, the top trends are common across the two industries highlighted and the national sample – again the order of the leading trends do differ slightly.

goes fourth in order for small firms with a 59% response while it shoots up to be the top priority for mid-size firm with a response of 84%. Large firms rank this as a second priority with a 64% response.

The “New Diversity Dividend” is one of the emerging trend for Indian businesses (ranking below the top trends) but takes a top five position for large firms in the survey – suggesting that larger firms are already thinking ‘ahead’ and focusing on diversity as a talent and HR priority.

This trend is relevant 3 years and beyondThis trend is highly relevant today

Technology, Media and Telecommunications


Leadership.Next





52%

57%

57%

69%

72%

85%

37%

30%

30%

28% 2%

2%

2%

2%

11%4%

19% 7% 2%

11%

11%

11%

Manufacturing


Leadership.Next


How Boards are Changing the HR Game



60%

60%

60%

67%

73%

73%

27%

27%

23%

15%

19%

17%

10%

10%

13%

13%

6%

10%

2%

2%

4%

6%

2%

India Top Trends

32%

27%

32%

26%

21%

23%

11%

13%

8%

11%

10%

7%

3%

4%

2%

2%

2%

2%




Leadership.Next



55%

56%

59%

61%

68%

68%

This trend is relevant in the next 1-3 years This trend is not applicable

12

General business outlook in 2013 Overall, a majority of the respondents – from India and globally - participating in Deloitte’s survey appear to recognize “moderate” growth in the economy as compared to 2012. However, as per the response rate, a majority of Indian executives (74%) appear “more” optimistic regarding the expected growth this year as compared to their global counterparts (51%).

Further, 22% of the respondents in India – 10% ahead of global respondents – anticipate strong business growth this year as compared to 2012. This may imply a different impact of the global downturn on the Indian economy as only 7% of Indian respondents report expecting slower growth this year as compared to 17% of global respondents.

India Summary

52.14%

0.85%

19.23%

5.98%

21.79%

Global Summary

12%

39%32%

14%

3%Strong growthcompared to2012

Strong growthcompared to2012

Moderate growthcompared to 2012



Similar growthcompared to 2012

Similar growthcompared to 2012

Slower growththan 2012

Much slowergrowth than 2012

Much slowergrowth than 2012


Capabilities of organization’s HR and talent programsAs part of the global and India survey, respondents were asked to assess their corporate HR and talent capabilities from “world class” to “need radical improvement.” The pattern of responses from respondents in India was generally aligned with the global survey responses in this area.

The global sentiment is similar to responses in India where only 3% of Indian and global executives assessed that their firms have broadly established world class HR and Talent programs and 27% of Indian respondents and 24% of global respondents assess their HR and talent capabilities as world class in some or all areas.About 4 out of 10 respondents in India (41%) and globally (38%) assess their talent and HR capabilities as adequate with the need to improve.

Interestingly, One third of the respondents in India (32%) and almost two fifths globally (37%) reported the requirement for ‘significant’ or ‘radical’ improvements in HR and Talent programs.

India Summary Global Summary

We are getting by in HR and Talent programs but significant improvements are needed

We are underperforming in HR and Talent rograms and radical improvements are needed

We are world class in HR and Talent programs

We are world class in some areas of HR and Talent programs while we need to improve in several key areas

We have adequate HR and Talent programs for our industry but we need to improve

23.08%

8.97%

2.99%

23.50%

41.45%

3%

21%

38%

23%

14%

14

Top three pressing HR and talent concernsOne of the global survey questions asked respondents to rank their top HR and talent concerns to understand future priorities. Interestingly, the top three concerns for Asia Pacific and global respondents were the same and the number one concern, developing leaders and succession planning was the top concern across India, Asia Pacific and globally respondents. Beyond the top concern, Indian executives reported a different focus.

Leadership and succession planning are a clear and common concern globally. There is a demand for a new class of global leaders. These are leaders who can thrive across multiple complex operating environments: hyper-growth mode in emerging markets (74% of respondents in India anticipate a strong to moderate growth in 2013); turn-around mode in mature markets and product segments; entrepreneurial innovation in start-up categories; and enterprise re-engineering for end-to-end value chain optimization.

Note: The % denotes total number of respondents who have rated the concern 1,2, or 3.

Top Three Pressing HR and Talent Concerns

Ranking India Asia Pacific Global

#1 Developing leaders and succession planning (49%)

Developing leaders and succession planning (56%)

Developing leaders and succession planning (55%)

#2 Retaining employees at all levels (32%)

Sustaining employee engagement /morale 34%)

Sustaining employee engagement /morale (39% )

#3 Creating career paths and challenging job opportunities for employees (31%)

Connecting HR and Talent with business critical priorities (33%)

Connecting HR and talent with business critical priorities (33%)

There is an upswing in the emphasis on accelerated leadership development programs in India however the costs of such programs are high. Companies are looking for new and more effective approaches to develop leaders for emerging and fast changing priorities.

“Retaining employees at all levels” and “creating career paths and challenging job opportunities for employees” are the next two top concerns for Indian executives while the Global executives list “Sustaining employee engagement/morale” and “Connect HR and talent with business critical priorities" as top concerns.

This divergence of the talent concerns in India from the global concerns is not surprising given the challenges facing companies here. While mature markets around the world are concentrating their efforts on employee engagement India, is focusing on how to retain and develop employees for longer and sustained careers with Indian companies, hence the top three concern of creating challenging career paths and job opportunities.


India Survey Respondents Demographics

Respondents by Industry

26%

23%21%

8%7% 7% 7%

2%

Not reported Technology,Media &

Telecommunications

Manufacturing FinancialServices

ConsumerBusiness

Energy &Resources

Life Sciences& Health Care

PublicSector

Respondents by role

1%

1%

1%

1%

3%

4%

4%

6%

8%

11%

15%

18%

28%

CIO/Technology Director

CFO/Treasurer/ Comptroller

Head of business unitBoard Member

Other C-level executiveCHRO/Chief Talent Officer

CEO/President/ Managing Director

SVP/VP/Director

Head of department

OtherOther HR or talent executive

Manager

HR/Talent Director or Manager

Respondents by company size

< 1,000 employees

1,001 - 5,000employees

> 5,001employees

Key contacts

Roopen RoySenior Director, ConsultingDeloitte Touché Tohmatsu India Private LimitedPhone: +913366121030Email: [email protected]

P. ThiruvengadamSenior Director, Human Capital, ConsultingDeloitte Touché Tohmatsu India Private LimitedPhone: +918066276108Email: [email protected]

Dr. Vishalli DongrieSenior Director, Human Capital, ConsultingDeloitte Touché Tohmatsu India Private LimitedEmail: [email protected]

Sucheta HotaDirector, Human Capital, ConsultingDeloitte Touché Tohmatsu India Private LimitedEmail: [email protected]

Shivram SethuramanDirector, Human Capital, ConsultingDeloitte Touché Tohmatsu India Private LimitedEmail: [email protected]

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

This material and the information contained herein prepared by Deloitte Touche Tohmatsu India Private Limited (DTTIPL) is intended to provide general information on a particular subject or subjects and is not an exhaustive treatment of such subject(s). None of DTTIPL, Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this material, rendering professional advice or services. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business. Before making any decision or taking any action that might affect your personal finances or business, you should consult a qualified professional adviser.

No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this material.

©2013 Deloitte Touche Tohmatsu India Private Limited. Member of Deloitte Touche Tohmatsu Limited

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