Tuesday, April 08, 2014

India, China fare poorly on utilizing talent - Costs Indian companies Rs. 508 billion

India and China are among the least adaptable markets when it comes to adapting and utilizing talent with changing demand-supply needs, according to a first of its kind report released by LinkedIn and PwC, titled ‘The Adapt to Survive study’. The report shows that better alignment between talent and given opportunities in countries can help drive economic growth.

Research by the two firms revealed that poor talent alignment is costing Indian companies as much as Rs. 508 billion in lost productivity. The capacity of a market to match supply and demand efficiently depends on the ability and willingness of employers and employees to adapt to changing circumstances and align skills with available opportunities, according to the report. If this alignment is less than perfect, a mismatch occurs and optimum productivity cannot be reached.

The report analysed real-time behaviours drawn from LinkedIn’s 277 million members and employer information from PwC’s Saratoga database of people and performance metrics, which covers more than 2,600 employers across the globe.

LinkedIn measured the degree to which talent and organisations adapt to changing circumstances in 11 countries like the US, the UK, Australia, Germany, Brazil, the Netherlands, China and India and created an adaptability score matching talent with opportunity. At 85, Netherlands was the most adaptable market across the globe, and the UK, Canada, Singapore and the US finished at the second, third, fourth and fifth positions with scores of 67, 61, 57, 57, respectively. India’s adaptability score was 34, right ahead of China which had the lowest adaptability score at 23.

The lower scores of Brazil, India and China were explained in part by a lack of sector diversity – in developing markets a small number of sectors tend to dominate the workplace and so skills tend to be more concentrated. Net migration is also influential; Brazil, India and China have seen more people leave their nations than arrive in recent years, although this may slow or even reverse as their domestic economies continue to develop, according to the report. 

“The reasons for a lower adaptability score for India could also be explained by inhibitions linked to lateral moves across sectors and the lack of an inherent flexibility in moving to different job roles across sectors. This could be due to societal expectations and perceptions which favour a linear career path,” said Nishant Rao, Country Manager, LinkedIn India. Rao also attributed lesser adaptability in India to a dearth of job ready skills among graduates passing out of Indian institutions.

About 81% of Indian CEOs were worried about the availability of key skills in the India findings of the report, and about 57% intended to increase their headcount over the next year. Productivity was found to be higher in the most adaptable markets as people and jobs were better matched.

Source: The Economic Times, April 8, 2014

No comments:

Post a Comment

Blog Archive