Mining is one of the core sectors of
our economy, contributing 2% of GDP and also linked to the growth of other core
industries like power, steel, cement which in turn affect manufacturing,
industrial production, automotive and other industries. After growing an
average of 4.8% from 2006 to 2011, for two years after that the industry saw
negative growth. The mining industry suffered from harmful policy, regulatory,
land and environmental issues, which resulted in mining projects getting
stalled.
Only very recently the mood has been
on the upswing both in the mining as well as in the steel industry. This has
been the result of government efforts on the one hand, and also to various
firms going ahead with their expansion plans both in the country and abroad.
The government of India has allowed 100% FDI in the Indian Steel sector. The
Ministry of Steel ecently set up the Steel Innovation Council. This promotes
ideas for the growth and development of the sector. They have also roped in the
Tanzanian Govt to cooperate in steel and mining. Recently, the government
invited Polish companies to join hands with Indian firms to share technical
knowledge and knowhow in mining and steel sectors. While research and
development in the sector is being encouraged and funded by the government,
urban need for steel is also increasing. Globally there is high demand for
steel to build infrastructure and industrialization.
This also goes to show that once the
domestic mining and steel industries do well, it in turn affects domestic
companies in their growth and expansion worldwide, thus making it imperative to
hire world class talent.
JSW Steel plans to commission a new
steel manufacturing unit in Bellary by March. This will in turn help in the
company meeting its demand for the auto industry. The US subsidiary of
Hindalco, Novelis is going to invest US $ 205 million in their facilities in
USA and Germany. Their growth plan for the next few years, in aluminum are 30%
y-o-y. GVK Power and Infrastructure Ltd
is growing in their dredging as well as mining sites in Australia and Germany.
Tata Steel will manufacture rails for high speed lines in Saudi Arabia. SAIL,
Steel Authority of India Ltd has taken up modernization and expansion projects
in all its plants to increase capacity.
All these expansion and growth plans
have already spurred on companies to increase their entry level hiring. Campus
hiring or entry level hiring is not just important, it is essential when an
industry is reviving or growing. These are the young women and men who will
shape the future of a company. From production engineers, quality management
professionals to functional professionals like HR, Marketing or finance,
requirement in all these hiring areas are bound to increase.
Having said that, hiring at junior and
senior levels have very different approach. While campus hiring and advertisements
work for junior level hiring, senior level hiring need much more attention and
expertise to execute. A CXO level profile needs to have technical capability
but added to that are the soft skills and the ability to grow the company not
just in the domestic markets but internationally, as many companies are
thinking of now. Hiring of top level executives is often outsourced to
consulting firms which have just that level of expertise to know who would be
the right person for the company at a CXO level. And if companies like Tata
Steel and Hindalco are thinking of expanding their presence as well as their
capacity, there are plenty of smaller firms who are also looking at expansion
in the coming year. They need the right person at the helm to lead the company
in the right direction. While many companies may be looking to getting into a
professionally run set up, there are also some who are dealing with the wrong
kind of person at the top which is stalling the company from growing.
Recently we were approached by one
such steel and metal company which had this very problem. They were being
affected in their plans of an overseas acquisition because of their leadership
which was undermining the morale and thus production of the company.
However, a company is not just made of
its CEO and shop floor workers. Good quality talent is also required at the
middle management levels. When companies start doing well, attrition in this
industry is also bound to increase. So firms would also do well to keep a good
back up of mid level management personnel who can be called upon at such times,
so that overall productivity or morale of the company does not diminish.
Another development over the years
have been the mining and steel industry’s relationship with their surrounding
society. There have been public opposition and conflicts over operations or
development of many plants. So the industry has started to become inclusive of
its environment and thus embracing corporate social responsibility. This effort
required experienced people to lead their agenda in helping the industry create
a positive image, while creating jobs, wealth and improving the livelihoods of
those in surrounding areas.
Thus hiring, even in core industries
like steel and mining, cannot be seen as a one off sensation. “People” are what
links the entire organization as well as the surrounding environment, and good
hiring practices at all levels, are what will make the differences in a
positive growth in the immediate future on the industry as well as long term
revenue generation for the country.
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