Diverse talent requirements for emerging economies

Although analysts and other experts often refer to emerging markets as though they were a coherent group, individual countries have diverse economic and social profiles. And, when it comes to talent, these differences
can be striking, as evident in a survey published recently by the Economist Intelligence Unit, in which 944 executives took part.

Executives in India, China and Brazil all point to “the gap between what universities provide and what industries need” as the number one problem. Respondents in Russia, on the other hand, view the “migration of talent overseas” as the chief source of talent shortages.

Of all the emerging-market nations, India expects to have the toughest time when it comes to recruiting and retaining talent. Fully 57 per cent of Indian respondents feel that it will be “significantly harder” to recruit and retain talent over the next three years, compared with Brazil, where only 31 per cent of respondents believe this to be the case.

“If you look at executive talent, provisory talent, even blue-collar workers, there’s going to be a tremendous shortage in India,” says Leena Nair, executive director and head of human resources of Hindustan Unilever, a consumer goods firm. “Of 320 million children only 10 per cent will pass school and go beyond. The education system is not capable of generating as much talent as we need.”

The result is salary expectations are rising in India, as job candidates call the shots.

In China, the workforce is expanding, relieving some of the recruitment pressures felt by companies. In our survey, only 33 per cent of respondents see recruiting and retaining talent becoming “significantly harder” in the next three years.

“A vast number of young graduates are entering the job market each year in China,” says Ramona Yan, Shanghai-based director of consulting, eastern China for Hewitt Associates, a human resources consultancy. “This has created abundant supply in low-level, white-collar jobs.”