Future of work- Innovative, Inclusive and Purpose-driven workplaces: FICCI-BCG HR Report
FinTech BizNews Service
MUMBAI, 3 September 2024: FICCI- BCG today released a report 'India's HR Revolution: Building Workplaces for the Future' during the ‘FICCI Innovation Summit 2024’. The report outlines the transformative changes reshaping the Indian HR landscape, highlighting key strategies for organizations to thrive in a rapidly evolving business environment.
As India’s economy continues to grow, the HR function is undergoing a radical transformation, driven by technological advancements and the need for more inclusive and purpose-driven workplaces. The report identifies six critical components that are shaping the future of HR in India: embedding purpose-led culture through Environmental, Social, Governance integration and sustainability initiatives, evolving talent management practices, enhancing employee well-being, unlocking potential through Diversity, Equity, and Inclusion (DEI), creating bionic organizations through GenAI-driven HR, and leveraging predictive HR analytics.
The report reveals several key insights shaping the future of HR in India. A significant 85 per cent of Indian CXOs surveyed believe that ESG initiatives are essential or very important in driving HR strategies and aligning organizational culture with broader societal goals. Furthermore, 66 per cent agree that environmental responsibility has become significantly more important in the past 1-2 years and are adapting to global and national ESG reporting standards. Talent management is another critical area, with 72 per cent of organizations leveraging policy changes to enhance work-life balance, recognizing it as vital for talent retention.
The report further highlights that Indian companies are increasingly prioritizing comprehensive programs to support employee well-being, with 79 per cent offering professional development opportunities and 60 per cent providing mental health support. This focus is particularly important given that 58 per cent of Indian employees report high burnout rates, highlighting the need for robust wellness initiatives. The report underscores the growing recognition of the business value that Diversity, Equity, and Inclusion (DEI) initiatives bring, with 67 per cent of CXOs believing that diverse teams improve overall performance and employee engagement. Additionally, 52 per cent of organizations have set diversity targets across all levels.
FICCI-BCG Report states that the integration of generative AI in HR functions is creating bionic organizations that blend human creativity with technological precision. In fact, 45 per cent of Indian companies have already implemented or are piloting GenAI in their HR processes, with 93 per cent reporting improved process efficiency and productivity as one of the key benefits. Finally, the report highlights the growing use of predictive analytics to enhance decision-making across the HR value chain with a third of CXOs surveyed sharing their organization has centralized workforce planning with analytics incorporated.
Mr Subramanian Sarma, Member of the Board & President (Energy), L&T said, “Success in any organization is built on four key pillars: People, Process, Technology, and Culture. People are at the core, as they define and drive the organization. Process is crucial to avoid reinventing the wheel and to ensure continuous growth. Technology acts as an enabling tool, making a digitally equipped workforce more effective. Finally, Culture—particularly an entrepreneurial culture that nurtures talent and encourages risk-taking—is essential. At our organization, we've defined ENERGY as our guiding principle: Entrepreneurial Excellence, Nurturing Openness and Boldness, Effective Delegation and Empowerment, Rallying Together, Growing Talent, and Youthful Energy.”
Mr Amit Kalyani, Chair, FICCI HR & Skills Committee and Vice Chairman & Joint MD, Bharat Forge said that the future of work is rapidly changing, especially with AI reshaping job opportunities. India is well-positioned in STEM fields, which will see significant growth. Also, we must build a strong ecosystem that combines soft and hard skills, offering global hybrid opportunities that attract global investments in India. “Inclusion is crucial for success but making the opportunities relevant and significant for women & differently able is equally important. Finally, collaboration between employees, educational institutions, and the government to roll out supporting policies is essential for scaling,” he added.
Ms Lakshmi C, Co-Chair, FICCI HR & Skills Committee and Sr MD -HR Lead, Accenture India said, “There are three critical aspects that drive innovation in an organization. 1. Relevance—the continuous need to stay relevant in a rapidly changing environment is a driving force for progress. 2. Fostering a Culture of Inclusion—embracing diverse perspectives and people is key to innovation. Organizations that fail to do this risk falling behind, as they miss out on the creative power that diversity brings. 3. Having a Sense of Purpose—it's essential for individuals within an organization to feel connected and aligned with the organization's mission. Today's conference agenda revolves around these very aspects, which are fundamental to driving innovation and ensuring long-term success in any organization.
Mr Ashish Garg, MD & Senior Partner, APAC People & Organization Practice Lead, BCG said, “With innovations happening rapidly, analytical tools are essential for assessing their impact on employees—how they affect performance, its relevance, and level of engagement. The workforce typically consists of 3 types of employees- 20% who are always on and highly motivated, 10-15% who are just moving along, and the remaining 60% who fall in the middle. We need to focus on this 60% and understand if they need mentoring or one-on-one support. GenAI tools can help analyze and unlock their potential, driving success across all functions of the organization.”
