ONE-ON-ONE - Govt must focus on edu: HR giant Adecco's CEO
Opportunity In Tier II & III Cities: Alain Dehaze
Alain Dehaze, global CEO of the 20-billion-euro Adecco Group, sees India as a major market for the HR solutions provider. India contributes 10% of employees and associates placed by Adecco globally . With growing urbanization, the Zurich-based company believes its growth in India is directly proportionate to its expansion in tier II and tier III cities. During his first visit to India recently, Dehaze listed out five emerging trends in the HR landscape.Edited excerpts:
We understand Adecco wants to invest a lot in its strategic plan for the Indian market. Could you please elaborate on the plan?
India is a major market with significant opportunities.Our core activities in the country are the supply of temporary work contracts in general staffing, and in permanent placement. But we also offer outsourcing services and services in recruitment process outsourcing. We act as a partner to global companies active in India, as well as with Indian companies that are developing abroad. We are strongly positioned in India, with about 1,00,000 employees and associates placed on assignment every day , out of about 1 million all over the world. This footprint in the country gives us a good platform to grow further.
Why is Adecco India expanding into tier II and III towns here?
As the phenomenon of urbanization is growing, in India too an increasing number of people are moving from rural areas to the cities. We need to be where people are and business is growing. Today , we are present in 56 geographical locations in India. Our growth in India is directly proportionate to our expansion in tier II and tier III cities.
What kind of changes do you expect in the entire HR landscape?
We can identify five interconnected key drivers that shape the labour market and there fore our business. A volatile environment is the first driver: Today's globalized economy faces continuous and unpredictable change. Flexibility is a must to remain competitive. The second is regulation. An effective regulatory framework can improve the market landscape and increase the ease of doing business, which lead to fostering entrepreneurship, attracting investment and eventually creating jobs. Technology is another crucial driver. Studies indicate that about 50% of current jobs -especially lowskilled and repetitive ones -are threatened by the higher sophistication of automa tion. But at the same time we see a direct link between emerging technology and the inflow of new jobs. Over 2 million new jobs will be created through technological advances. Among today's primary school children, 6 in 10 will perform jobs that do not exist today . The key point is these will be new professional profiles requiring new skills, which are currently not available. This scenario requires countries to prepare and in vest, both in technologies and in talent and skills development. Demography is the next key global driver. Many countries will face an ageing population, but India is an ex ception here. Indeed, India will have the highest youth population in the world by 2022. If India is willing to leverage this demographic asset, it needs to further increase its focus on education to make sure the right competencies are developed and youth unemployment is reduced.The last driver is sociology .Today , organizations deal with three to four generations at work. Companies need to adapt by fostering diversity -in terms of geographical and cultural origins, gender, contractual forms and age.
How do you see HR budgets of organizations changing?
It is very difficult to speak about the human resource budget for customers as it really depends on the industry . Today in India, the temporary staffing market penetration is 1.5%. In other countries this can reach 4-5%, while global companies can have up to 40% flexibility in their workforce. Clearly , the trend is towards more flexibility in the workplaces.