India Inc in a fix as HR heads shift loyalties from established companies to new ones

MUMBAI: A churn, unprecedented in recent times, is now shaking up HR circles across India Inc. Since May, at least 17 HR heads have changed loyalties — with movements happening across companies from old economy to new-age ones. Reliance Industries, PepsiCo, Philips, Accenture, Cipla, Dell, Adobe, Vodafone and Vedanta Group are some of them.

Several top headhunters involved with some of these searches declined to be quoted for the story but said that a combination of factors — the relationship between the promoter-CEO and HR head unravelling, increased outside opportunities and in some cases, lack of internal recognition — were driving the moves.

"It's all happening at the same time," said the head of a leading executive search firm.

"For some people, it was a question of greater opportunities outside the organisation: moving on to more challenging roles or bigger brands. For others, it was their inability to adapt to the organisational culture."

The latter reason, in fact, say both company circles as well as headhunters, is more applicable to promoter-driven companies. "Often HR heads think they can make drastic changes very early on in the new company but that is not possible. They do not realise that company culture was built over decades by the promoter family and they will have to work with their coterie and not topple them," said the India head of another international executive search firm. He says they are currently sitting on seven HR mandates which is unusually high.


An HR head who recently quit a prominent business group tells his side of the story. According to him, while companies need the best HR leaders to help them navigate through today's complex talent scenario, they aren't always receptive to changes.

"While their sales pitch is great, companies are unwilling to really go along with professional advice. Or old coteries make professional HR a strain. Worst, HR heads get blamed as an easy scapegoat. With more opportunities, they cut their losses rather than waste their time," said the HR head who has since bagged multiple offers from other companies.

And while HR as a function is getting alienated from business in some organisations, overall offers are aplenty; whether it's for those looking to cut losses or others looking to move for better career opportunities or even personal reasons. Around 4 executive search firms confirmed that they are sitting on a number of HR head mandates.

"Demand for good HR leaders has got accentuated. What's also changing fast is the nature and role of the HR functions and its leaders. It's become more strategic. CEOs who are running global companies need a HR leader as a strong partner, who'll help them with their talent, culture and workforce competitiveness/ agenda," says Yashwant Mahadik, senior vice president - global head of human resources business transformation, IT and operations of Philips who is expected to join Sun Pharmaceuticals as their CHRO.