About 81 per cent of Indian CEOs see unavailability of key skills as the biggest threat to their growth prospects and wish to change their organisation's talent strategy in the next 12 months, a report says.
According to a PwC study on HR, Indian businesses intend to strengthen their leadership pipeline by developing the next line of leaders, and a majority of Indian CEOs have already deployed a variety of talent development strategies with varying levels of success.
"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," PwC India, executive director -- People and Change, Padmaja Alaganandan said.
The survey further added that 47 per cent businesses plan to increase their focus on workplace diversity and inclusion.
"Strengthening the leadership pipeline is a huge business prerogative.
"With increasing focus of boards and public on top executive pay, any change in the reward philosophy may have implications on retention of top leadership," Alaganandan said.
To improve operational efficiencies, HR will need to drive a more efficient but not necessarily a leaner structure across the organisation, the report said.
Around 86 per cent of Indian CEOs feel that employees including trade unions have a significant impact on their business strategy and 94 per cent of them would like to increase their engagement with them.
Improving operational efficiencies continues to be a top priority for 36 per cent of Indian CEOs with 53 per cent of them intending to initiate cost saving initiatives in the next 12 months.
The report further said that more than half of Indian CEOs (51 per cent) surveyed expect to increase headcount (by 5 per cent or less), but only 29 per cent consider filling talent gaps as a key investment priority.