Titled ‘India’s HR Revolution: Building Workplaces of the Future’, the report was presented at the FICCI Innovation Summit in Mumbai on Tuesday.
Purpose-led culture through ESG and sustainability, evolving talent management practices, enhancing employee well-being and engagement, unlocking potential through diversity, equity, and inclusion, creating bionic organisations through GenAI-driven HR and leveraging predictive HR analytics are the six critical components, the report identifies that are shaping the future of HR in India.
Jyoti Vij, Director General, FICCI, said, “The business landscape is evolving with unprecedented speed, driven by technological advancements, shifting workforce dynamics and the imperative for sustainability, making the role of Human Resources more critical than ever. By embracing these emerging trends and embedding Diversity, Equity, and Inclusion (DEI) and Environmental, Social, and Governance (ESG) principles into their core strategies, organizations can build resilient, innovative, and purpose-driven workplaces that are well-equipped to meet the challenges of the future”.
According to the report, 55% of CXOs believe their organisational culture is fully aligned with stated values and missions. 2 in 3 CXOs strongly agree that environmental responsibility has become more important to the organisation over the last 1-2 years. 84% of CXOs feel ESG initiatives are essential in driving HR strategies.
4 in 5 organisations identified an increase in productivity as the primary goal for upskilling initiatives and 70% of organisations engage with gig workers on a need-based basis.Nearly 3 in every 5 Indians (58%) reported experiencing burnout at work. Consequently, only 23% of CXOs report very high levels of employee engagement in their organisations. Organisations are waking up to this pressing concern, 72% of them are leveraging policy changes to facilitate employee work-life balance.Although 2 in 3 CXOs strongly agree that diverse teams improve performance and engagement, less than half (49%) of the organisations have diversity-related metrics at all levels. 49% of CXOs rate resistance to change as the biggest blocker to DEI initiatives.
Ashish Garg, Managing Director at BCG, said, “Diversity, Equity, and Inclusion (DEI) initiatives are becoming pivotal, with CXOs acknowledging enhanced performance and engagement as key outcomes of fostering diverse teams. Companies are moving beyond the pilot phase with predictive and generative AI, scaling across the HR value chain and investing in developing GenAI expertise.”
Interestingly, despite 70% of organisations reporting enhanced decision-making through real-time analytics less than half (47%) have reported increased reliance on predictive modelling and simulations and even fewer organisations (34%) have integrated analytics into workforce planning.