Over 80% employers in India grapple with talent shortage: Report

As the talent pool continues to shrink, organizations are re-evaluating their benefits packages to remain competitive.

India ranked seventh among nations facing a shortage in talent, with 81 percent of employers reporting difficulty in finding skilled manpower, according to the latest ManpowerGroup Employment Outlook Survey.

Industries such as transport, logistics, and automotive (88 percent), followed closely by the information technology sector (87 percent), are among the most affected by talent shortages. In response, employers are adopting various strategies to attract and retain talent, including offering increased work flexibility (86 percent), exploring new talent avenues (47 percent), and raising wages (36 percent).

As the talent pool continues to shrink, organisations are re-evaluating their benefits packages to remain competitive. However, amid these challenges, employers are also grappling with the need to adapt to emerging trends and technologies.

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"The survey reflects the changing world of work where companies are in the transformational phase. Employers' shift towards flexible work arrangements and exploration of new talent pools reflects a commitment to creating dynamic, inclusive, and adaptive workplaces for the future,” said Sandeep Gulati, managing director of ManpowerGroup India and Middle East.

These trends highlight a paradigm shift in technical skills, with a projected 60 percent change required to accommodate more sustainable practices at work. Gulati further emphasises the inadequacy of current sustainability skills for the green transition.

The outlook is derived by taking the percentage of employers anticipating an increase in hiring activity and subtracting from this the percentage of employers expecting a decrease in hiring activity. The responses were collected in October 2023.

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