The latest issue of Business World has an interesting article based on a survey by a Top ten executive search firm EMA Partners Internationals (EMA) -which estimates a severe shortage of top level executive talent!!
The study indicates that the financial services, manufacturing & engineering , and the healthcare industries account for almost 45% of the shortage. Retail, real estate, IT, auto & Travel amount to the next 30&-and the Energy, Services , Pharma & Biotech account for the rest.
The primary reasons for driving the demand for high calibre talent :
1. the surging economy that is fuelling corporate growth,
2. the high attrition at middle & senior levels drying up the pipeline of leaders who could replace them,
3. Many senior level executives striking out on their own as entrepreneurs.
The article goes on to touch upon some of the attempts of the large business houses to address this vacuum;
- creating leaders internally ( eg the Tata Administrative Services, Hindustan Unilever, RPGoenka group )
- growing your own leaders ( eg the Aditya Birla group, ICICI group, Mahindra & Mahindra group)
I cannot resist adding one more source !!
- Those with international experience-be it the ‘returning Indians ‘ or the expats keen to have an India experience- this is a great time to look at Options in India.
However, the larger issue –is to ensure how the potential leaders are more likely to stay-and perhaps creating a pipeline of leaders. The only alternative is to for company to have a sound Employee Value Proposition- ‘ companies should create individual development as part of the corporate culture’!
Yes, for the business owners and the Board - there is another challenge they could address –to ensure enough..empowerment for the leaders!!
In the Indian context, there is a fear that a CEOs role is almost 70% execution and tactical-only 30% involves serious strategy –which today is mostly the prerogative of business owners –as well as globally managed companies ..Is it in the ambit of the HR professionals to sensitise the various stakeholders about the transition required??