Deel, the all-in-one payroll and HR platform for global teams, released the first edition of its annual market research, “India Business Leader Pulse Check: Workforce and Hiring”. The research, conducted by Rakuten Insights between June and July 2024, surveyed the sentiments of business decision-makers,from small, medium and large enterprises, across various industries. The topics include talent attraction and retention, global team management challenges, AI usage in their businesses, and the evolving work and hiring landscape in India.
The research results show that India’s businesses are at a critical juncture in their AI talent journey, facing high salary expectations and stiff competition for top talent. Despite having one of the fastest growing AI talent pools in the world, the ongoing AI skills ratio between demand and supply of AI talent stands at 51% in India, with higher demand-supply disparity for roles such as machine learning engineers, data scientists, DevOps engineers and data architects. Our research shows that India’s organisations are open to hiring from other markets (88%), which can help to fill the AI sector skills gap now and allow skills transfer from global teams to the next generation of AI employees in India,” says Mark Samlal, General Manager for the Asia-Pacific region at Deel.
Findings from Deel’s 2024 India Business Leader Pulse Check: Workforce and Hiring
The struggle to find AI talent
High salary expectations amongst AI professionals present a significant barrier when trying to hire talent, especially for those hiring exclusively within India (80%). Fierce competition from other firms vying for the same skilled professionals also adds to the hiring challenge in India. Accurately assessing candidates’ AI capabilities is another key difficulty, while integrating this specialised talent into an existing workforce culture is also posing problems. These findings highlight the need for organisations to develop more effective strategies for identifying, evaluating, and retaining AI professionals to stay competitive in today’s rapidly evolving business landscape.
⦁ High salary expectations is a major difficulty in hiring AI talent (66%), particularly for companies hiring within India only (80%)
⦁ 56% of respondents cite fierce competition from other companies as a significant challenge in attracting AI talent
⦁ 55% of respondents struggle to accurately evaluate candidates’ AI capabilities
⦁ 52% of respondents find it challenging to integrate AI talent into their existing workforce culture
⦁ 50% of respondents attribute their difficulty in recruiting AI talent in India to a lack of qualified candidates in the local job market
Business operations and appetite for global hiring
Indian organisations are increasingly recognising the benefits of hiring talent outside of India. 88% of organisations are open to global hiring, with that rising to 96% among C-suite roles, 98% amongst seed/start-up businesses and 99% amongst respondents between the ages of 18 to 34. Key benefits of hiring talent outside India include access to a wider talent pool and ability to expand into new markets.
⦁ 69% of businesses already have employees located outside of India, this is higher in tech and finance sectors.
⦁ One of the key advantages of global hiring, as cited by 60% of respondents, is access to a wider talent pool. By casting their net beyond India’s borders, organisations can tap into a more diverse range of skills and expertise, enabling them to build stronger, more capable teams.
⦁ Moreover, 62% of organisations believe that global hiring contributes to shaping a more diverse organisation. Diversity in the workplace brings fresh perspectives, fosters innovation, and enhances cultural understanding, all of which are crucial for success in today’s globalised business landscape.
⦁ The survey also highlights the importance of skills transfer, with 67% of organisations recognising that hiring international talent enables local employees to learn from their expertise. As subject matter experts from around the world join Indian teams, they can mentor and share their advanced knowledge, upskilling local employees and strengthening the overall talent pool.
⦁ Only 12% of organisations do not wish to hire overseas. Among these, 57% cite the lack of business entities or teams outside of India as the main reason.
AI and technology in HR
Indian firms stand at a crossroads, embracing AI to redefine operations, particularly in product development and HR. While excitement surrounds AI integration, uncertainty clouds the skills needed to maximise its potential. HR tech integration is widely adopted, but high costs remain a barrier for some.
⦁ 95% of organisations are either integrating or considering integrating AI
⦁ Already integrated (51%)
⦁ Considering (44%)
⦁ Out of the 5% of organisations not yet considering AI integration-
⦁ 83% are adopting a wait-and-see approach, looking for more updates
⦁ Additionally, 58% of organisations are not familiar with how AI could benefit their business.
⦁ Some of the business unit that companies show stronger intention for AI integration includes:
⦁ Product development (60%)
⦁ Human resources (56%)
⦁ Marketing (52%)
⦁ Supply chain (50%)
⦁ Finance (49%)
⦁ 87% of organisations are already using technology tools within their HR practices
⦁ 50% of organisations are managing 6 or more tools, highlighting the complexity of their tech stacks
⦁ Among the 13% of companies not integrating tech tools into their HR practices:
⦁ 42% cite high costs as the major challenge.
⦁ 44% struggle with digital transformation and keeping pace with the latest technological solutions.
