Michael Page says Indian businesses are struggling with talent crunch

• 34% of organisations are struggling to find the right talent.
• Nearly 1 in 3 companies are facing challenges in retaining employees.
• Despite being satisfied with their salaries, 94% of workers are open to exploring new job opportunities.
• These insights come from the Talent Trends Report by recruitment firm Michael Page, shared exclusively with The Economic Times.

Job mobility remains high

According to Anshul Lodha, Managing Partner at Page Executive India, even employees who are satisfied with their salaries are still open to new roles.

This highlights that while competitive salaries remain important, they are no longer sufficient to retain top talent.

The report, which surveyed over 3,000 respondents across varying levels of seniority and industries, shows that job mobility is still a priority for many workers:

• 52% of respondents are currently looking for a new role.
• Another 15% plan to start searching for a new position within the next six months.

Employers’ hiring challenges

In addition to finding the right candidates, employers are dealing with a range of hiring and retention issues:

• Losing talent to faster-moving competitors.
• Struggling to match benefits expectations.
• Adapting to new recruitment technologies.
• Finding applicants who fit the company culture.

Anshul Lodha emphasized that many organizations are struggling to keep up with the fast pace of recruitment, while the complexity of meeting new employee expectations continues to rise.

Retention gaps between employers and employees

Interestingly, there’s a mismatch between what employers believe drives retention and what employees actually prioritize:

• Employers tend to focus on work-life balance, recognition, and manager relationships as key retention factors.
• However, employees place higher value on clear promotion paths, support for role transitions, and ensuring that their work aligns with their personal goals.

Lodha advised employers to reevaluate their retention strategies and ensure they align with employees’ real priorities to reduce turnover.

What do younger employees want?

The report also found that younger employees, especially those with less than a year of experience and no managerial responsibilities, are increasingly prioritizing well-being over career advancement.

This shift emphasizes the need for employers to understand that traditional methods of motivation and retention may not work across all generations.

Lodha added that companies must craft policies that promote work-life balance and cultivate a culture that supports the changing priorities of a multi-generational workforce.

AI’s role in reshaping the workplace

Artificial intelligence (AI) is becoming a major factor in the modern workplace.

The report reveals that 47% of employees in India are already using AI in their current roles, compared to the APAC average of 41% and the global average of 30%.

Key AI technologies being adopted include:

• Chatbots and virtual assistants
• Generative AI (Gen AI)
• Machine Learning (ML)
• Natural Language Processing (NLP)
• Robotic Process Automation (RPA)

AI adoption in specific sectors

Industries leading in AI adoption, where employees use AI tools regularly to enhance productivity:

• Technology
• Telecom
• Media, agencies,
• and business services are

For instance, Genpact has deployed AI across its employee lifecycle to drive efficiency.

According to Piyush Mehta, Country Manager – India, Genpact, the company uses AI to handle queries, generate document summaries, and even monitor performance data for anomalies to detect issues like favoritism or collusion.

Sources:

The Talent Trends Report by Michael Page, shared with The Economic Times.

Do you agree? Is there a talent crunch?