Most Indian CEOs don’t plan to reduce workforce size, compensation in 2023

In light of changing customer demands and supply chain disruptions, CEOs are looking at reinventing their companies over the next five years with the required investments in technology and people — both leaders and workers — without reducing size of their workforce.

While the overall prognosis for India however remains largely positive, cost cutting appears to be high on the priority list for about 93% of the country’s surveyed CEOs.

“About 85%, however, stress they will not reduce the size of their workforce, and 96% state they do not plan to reduce compensation – demonstrating their resolve to retain talent,” the report adds.

PWC’s India Workforce Hopes and Fears Survey 2022 noted that the changing dynamics between the employer and employee over the past couple of years had modified the workplace. Employers are now more focused on building a resilient workforce strategy that balances acting with speed and adaptability to position for scale.

“Employee attrition is another issue that confronts CEOs. The survey shows that India CEOs are divided, with 32% saying attrition rates will continue to increase slightly, moderately and significantly, and 34% holding that there will be no change. But this may be a bigger concern than is now being felt,” the report adds.

With geopolitical conflicts adding to the tense global situation, Indian CEOs are also adjusting supply chains, diversifying products and services, increasing investments in cybersecurity and data privacy, and adjusting their presence in current markets and/or expanding into new markets. India CEOs also underscore the need to include the impact of possible disruptions in scenario planning and corporate operating models.

“In response to the current environment, 93% of India CEOs say that they are reducing or planning to reduce operating costs,” the report notes.