The future of HR in India in 2019: In the KNOW or in the NO
Human Resources will no longer be an enabling function. It will be the driving of business success and sustenance in these volatile, uncertain, complex and ambiguous (VUCA) times. The Indian segment of KPMG international’s latest global future of HR survey, 2018 indicates that the HR leaders in India today, exhibit better acknowledgement and recognition of the need for change in HR vis-à-vis their global counterparts; and that Human Resources management is soon going to be known as “the linchpin of business success and differentiation”.
HR Growth & Excellence – Anticipate change: Thrive in the digital era
60% of HR leaders in India are confident in HR’s ability to transform the workforce and themselves. Common characteristics will be delivering predictive insights, believing in and driving digital agenda, reshaping the workforce and enhancing the employee experience.
Ignore change – Struggle to adapt to digital era: HR extinction
7% of HR leaders in India are less or not confident in their ability to transform the workforce and themselves. Common characteristics are HR not seen as value driver, currently apprehensive of Artificial Intelligence, HR not using predictive insights and no digital plan in place (or planning to)
A little more than two thirds of HR executives agree that HR has undergone or is undergoing digital transformation but only 47% of HR leaders said that they have digital work plan in place at the enterprise or HR level. More HR executives at 91% recognise the need for workforce transformation whereas 60% feel very confident about HR’s actual ability to transform and move them forward via key capabilities like analytics and AI.
The turning point
It is a time of transformation for the HR industry in India. Disruptive developments, both from the demand side as well as the supply side, are changing the shape and nature of services. Some of the demand side factors that have (and will continue to) shape the developments of the HR industry include the macro-economic environment, HR’s increased need for strategic partnership with the business, more influx of global players and best practices, and the increasing awareness and adoption of technology. From the supply side as well, many changes have altered the course of the HR industry in India, starting from growth of niche services, such as assessment and temporary staffing, to innovation in terms of how services are packaged and delivered. The industry will continue to grow and technology will drive the next level of evolution of HR services in India.
The Players in HR Industry & their elements
– Executive Search (Retained Search)
– Search & Recruitment (Contingent Search)
– Staffing & Temping
# Learning & Development:
– Leadership & Behavioral Training
– Business Schools’ Executive Education
# HR Consulting:
– HR consulting practices of audit firms
_ Specialist HR consulting
– Niche or specialized Players
# HR Technology:
– HRMS modules of ERPs
– Stand-alone HR software
– Specialized HR solutions
# Outsourcing and Others:
– HRO solutions of large BPO players
– Functional HR Outsourcing players
– Outsourcing consulting players
– Companies that provide specialized services with high expertise
HR consulting – Exploring new frontiers of value delivery
# Consulting services in India comprise strategy consultants, niche boutique consultants, recruitment consultants, business consultants, IP or knowledge consultants, leadership consultants, and system integrators.
# Sankar Ramamurthy, Executive Director at PWHC, is optimistic that the outlook for consulting service will be positive in 2019.
# He highlights that some services like compensation, evaluation, and recruitment will be evergreen.
# People- based services and analytics will likely come up in a big way.
# There will likely be high demand for value-based services including learning solutions, social media services for recruiting and branding, and performance management.
In identifying opportunities, choose an idea which you are so passionate about that
you are willing to spend the rest of your life doing it, no matter how little money
Sanjeev Bikhchandani, Founder & VP, Info Edge, India
While there may be models that have worked for many entrepreneurs, they need to
fall in love with the cause, which creates the right fulcrum for a successful business.
Anil Sachdev, Founder & CEO, School of Inspired Leadership (SOIL) and Founder, Grow
Advice for HR turned entrepreneurs – Do not behave like an HR Manager, understand finance, ebitda and financial models.
Ajit Isaac, MD & CEO, Ikya Human Capital Solutions
THE ROAD AHEAD…
Today’s knowledge based economy is fertile ground for entrepreneurs in India who serve as the bridge between innovation and the market place.
The opportunity in the HR space is wide open and there is every reason for budding entrepreneurs venturing into this largely untapped domain with the right focus on strategic partners, promoters, investors, clients and
employees, to succeed.
While, this is an opportunity open to all, HR professionals are in the best place to find solutions to unsolved needs that can become scalable business ideas; they certainly have the unfair advantage.
# The future looks extremely promising as the recruitment industry heats up again.
# The global markets have recovered from the pangs of recession, customer spends are comparatively ncreased and a general positive outlook has been arisen in the business sector this year.
# The changes have started getting visible in the IT industry with increase in employment opportunities.
# Increasing job opportunities can create a strong foundation for the economy and thereby overall growth of a country can be achieved.