As organizations strive for efficiency, productivity, and employee well-being, two critical trends have emerged: GenAI (Generative Artificial Intelligence) and ESG (Environmental, Social, and Governance).
However, a joint report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Boston Consulting Group (BCG) sheds light on the adoption gaps that persist despite the potential benefits.
GenAI: Efficiency and Productivity
GenAI, driven by artificial intelligence, promises process efficiency and productivity enhancements.
According to the report, a staggering 9 out of 10 Indian CXOs (Chief Experience Officers) recognize GenAI’s potential in improving organizational processes.
Yet, only 45% of organizations have fully or partially implemented GenAI initiatives within their HR functions. The gap between recognition and implementation remains a challenge.
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ESG: Purpose-led Culture
ESG principles—focusing on Environmental, Social, and Governance aspects—have gained prominence. Organizations are increasingly aligning their strategies with sustainability goals.
The report highlights that 84% of CXOs believe ESG initiatives are essential in driving HR strategies. Purpose-led culture, rooted in ESG principles, can create resilient and innovative workplaces that meet the challenges of the future.
GenAI and ESG: Six Critical Components Shaping HR
The report identifies six critical components that are shaping the future of HR in India:
Purpose-led Culture through ESG and Sustainability: Organizations must embed ESG principles into their core strategies to build purpose-driven workplaces.
Evolving Talent Management Practices: As recruitment diversifies, talent management practices evolve. Employers focus on employer branding and attracting diverse talent.
Enhancing Employee Well-being and Engagement: Prioritizing employee well-being leads to higher engagement levels. However, only 23% of CXOs report very high levels of employee engagement in their organizations.
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Unlocking Potential through Diversity, Equity, and Inclusion (DEI): DEI initiatives foster an inclusive environment where every employee’s potential is valued.
Creating Bionic Organizations through GenAI-driven HR: While GenAI holds immense promise, its adoption remains a challenge. Organizations need to bridge the gap between recognition and implementation.
Leveraging Predictive HR Analytics: Data-driven insights enable better decision-making. Organizations should harness predictive analytics to optimize HR processes.
Organizational Alignment and Burnout
The report reveals interesting insights on alignment and burnout of professionals. 55% of CXOs believe their organizational culture is fully aligned with stated values and missions.
2 out of 3 CXOs strongly agree that environmental responsibility has become more important to their organizations over the last 1-2 years. Nearly 3 in every 5 Indians (58%) report experiencing burnout at work, emphasizing the need for employee well-being initiatives.
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