Hybrid work and a focus on skills is redefining the Indian workplace

The increased adoption of digital communication and collaboration tools is helping shape how Indian companies are thinking about the purpose of the workplace and redefining it. The use of these tools and technologies is changing how teams collaborate when not in the same location (and even time zone) and also shapes the design and infrastructure of the workplace.

In parallel, companies across industries and sizes have been embracing the hybrid work option, as opposed to working in the office for the full week, as a result of the recent covid-19 pandemic. This format of hybrid work is made easier with rapid digitalisation across industries.¹ This digitalisation of the workplace has the potential to outpace the existing digital skill sets of the workforce.

Without acquiring the necessary digital skills, companies will not be able to take advantage of increased productivity offered by emerging technologies. According to a recent study, most Indian organisations currently struggle with attracting and retaining digital talent, which could complicate the country’s path to achieving the 30m digitally-skilled professionals it needs by 2026.^2,3 The lack of a digitally-skilled workforce could depress the Indian company’s long-term growth prospects. Investing in upskilling programmes could bridge this gap by equipping India’s existing workforce with the skills in demand. According to the World Economic Forum, upskilling Indian talent could boost the Indian economy by as much as US$570 bn and add 2.3m jobs by 2030—both of which are essential to meeting the needs of its growing population.^4,5

Pandemic-driven and technology-led growth of hybrid work

There is a desire amongst employees for flexible work options in pursuit of work-life balance to improve their mental and physical well-being. Large Indian IT firms, in particular, are championing such hybrid work policies.⁷ Aditi Mukherjee, chief people officer at National Commodity and Derivatives Exchange (NCDEX), a commodity exchange in India, notes that the shift to digital extends even to those in manufacturing and mining industries, who are now employing remote sensing or smart devices in their workplace. “There has been an acceptance that remote work can happen in any sector and there is flexibility beyond location,” she says. For 43% of executives, there is also an emphasis on hiring remote-only employees as a strategy for the next three-to-five years, according to the Economist Impact survey.

When asked what strategies executives were adopting to redefine the workplace, 64% of Indian C-suite executives selected a hybrid working environment, a move that cuts across company size. Organisations are also incorporating other strategies, ranging from working across global teams to hiring remote only employees, to broaden their outreach and presence - both internationally and domestically. Companies are leveraging these changing working environments to hire talent outside India — 58% of executives mentioned that their organisation is already working across global teams, especially those in large companies. Ms Mukherjee notes that companies are embracing remote work to access new sources of talent by moving satellite offices away from large urban centres and into towns farther afield. These hybrid working environments will also imply a change in office infrastructure as workplaces are looking to “maximise” their office infrastructure, says Ms Mukherjee. “If you’re coming into the office one day per week, you might as well spend time collaborating with your colleagues in cluster seating arrangements rather than long cubicle workstations.”

43%

For 43% of executives, there is also an emphasis on hiring remote-only employees as a strategy for the next three-to-five years.

64%

64% of Indian C-suite executives selected a hybrid working environment, a move that cuts across company size.

58%

58% of executives mentioned that their organisation is already working across global teams, especially those in large companies.

Changing skill requirements

When asked about setting strategies for the next three-to-five years, 34% of the executives highlighted upskilling and reskilling their existing employees as a priority. This corresponds to the expectation around the changing nature of jobs and skills required in the workplace. Given increased digitalisation and potentially widespread adoption of emerging technologies, employees will need more advanced digital skills to keep up with these new tools. India has a strong foundation to build upon due to its large, English-speaking population; however digital skills are still lacking, says Ms Mukherjee. “Every job is now a combination of technology and subject matter. We have a lot more [work] to do to build those digital skills and incorporate them into existing jobs.” As workplaces become more decentralised, digital learning platforms could support better communication and upskilling for workers regardless of location, says Ms Mukherjee

Studies have found that 69% of Indian jobs are under threat from automation, especially those in industries such as construction and agriculture. Upskilling workers to adapt to new roles will be essential to ensuring their future.⁸ However, executives reportedly have difficulty in obtaining a workforce with the required skills. Although these skilled workers are critical for companies to meet their future business needs, half of the executives reported that they were only “somewhat present” as an opportunity in India currently. Congruently, 62% executives mentioned that skill gaps exist in the human resources required for their industry. Talent shortages are especially acute for smaller companies with fewer resources that end up competing for talent with larger firms. These talent gaps can impact companies’ bottom lines and limit their ability to reinvest in capacitating their workforce and hiring more employees. This leads to even more losses and missed opportunities.

62%

62% of executives in the Economist Impact survey mention that skill gaps exist in the human resources required for their industry.

Building on India’s demographic dividend

Upskilling efforts must also look to leverage India’s valuable demographic dividend: around 67% of the population is aged 15-64 years, making India accountable for nearly a quarter of the global incremental workforce. “We have a very young and growing population, which brings a lot of demographic advantages to us as this population will enter the workforce and will propel the vast consumer market,” says Ms Mukherjee. As other parts of the world age rapidly, securing adequate training and skills for these young people will prove beneficial not only to Indian companies, but also to the country’s own growth. With targeted training in in-demand skills, executives can build a crucial talent pipeline to support their future growth.

At present, 78% of Indian C-suite executives report satisfaction with the various initiatives that their organisations are adopting or planning to adopt in order to redefine the workplace. This cuts across the two themes of hybrid work and upskilling the workforce. Ms Mukherjee shares that her organisation has invested in the last few years in transforming their learning and development approach to build a framework that promotes holistic learning as well as coaching and mentoring. Skilling is also opening up opportunities for the organisation to tackle employee movements, such as gender prominence in leadership roles, employees’ mental health and empowerment.

78%

78% of Indian C-suite executives report satisfaction with the various initiatives that their organisations are adopting or planning to adopt in order to redefine the workplace.

With these benefits out on offer, Indian corporates are moving away from what was traditionally understood as the ‘workplace’ to a refined version of it wherein employee and employer needs are both met in a manner that brings out the maximum potential and benefits.