Lack of key skills is the biggest threat to Indian business: PwC HR Study

NEW DELHI: Nearly 81% of Indian CEOs see the unavailability of key skills as the biggest threat to growth prospects and wish to change their organisation's talent strategy in the next 12 months, according to a PwC study.

They also plan to strengthen their leadership pipeline by developing the next line of leaders, who are adequately prepared to handle volatility, uncertainty, complexity and ambiguity. The study, titled, 'Managing HR in Uncertain Times: HR at Crossroads', also reveals that 47% businesses plan to increase their focus on workplace diversity and inclusion.

"The war for good quality talent has been intensifying, but the levers of unrestricted career growth and uncapped remuneration are no longer available as aids to hire. There will be further discernment and thoughts around the kind of talent to hire, and how well the people fit into the organisational requirements and culture," Padmaja Alaganandan, executive director - people and change, India, said in a statement.

Among other findings, 51% of Indian CEOs surveyed expected to increase headcount (by 5%), but only 29% consider filling talent gaps as a key investment priority.

The research also shows that 86% of Indian CEOs feel that employees including trade unions have a significant impact on their business strategy and 94% of them would like to increase their engagement with them. Improving operational efficiencies continues to be a top priority for 36% of Indian CEOs with 53% of them intending to initiate cost saving initiatives in the next 12 months.