Even before the pandemic, the engineering industry faced major challenges in HR in India, and foreign SMEs in the industry struggle more with these issues due to their size. Maier+Vidorno (M+V) was commissioned by VDMA (the German Engineering Federation) to conduct a CXO level research on the subject. The research report with key findings was released in 2018, and still holds valid insights.
The purpose of this research was to discover how engineering companies recruit, develop and retain their people resources and thus identify industry best practices and how companies are preparing themselves for the future. M+V surveyed almost 100 companies and key findings from the research cited HR as a “top priority” for business early on. The HR Manager was reported to be usually one of the most important positions to hire. Many Business Heads advised new market entrants in India to invest in their Human Resource Function from inception.
The respondents find Recruitment the top current People Challenge and Retention as a key challenge in managing the growth of their company. More than half of the respondents anticipate that Industry 4.0 would impact jobs in the next 3 years. However, less than 2% of the respondents thought their companies were ready for the expected changes in workforce demographics.