India’s remarkable strides in bringing down multidimensional poverty: Implications in HR

Amidst a dramatic turn of events, India has made relentless efforts to bring a decline in multidimensional poverty. This has been reflected in the latest report by NITI Aayog released on July 17, 2023. The report reveals a staggering achievement showing that 13.5 crore people emerged from the shackles of multidimensional poverty over the period of 2015-16 and 2019-21. From 24.85% in 2015-16 to 14.96% in 2019-21, there has been a remarkable 9.89% points drop in the proportion of multidimensionally poor people (NITI Aayog, 2023).

This momentous achievement, taking into consideration a spectrum of interconnected factors such as education, healthcare and living standards, goes beyond economic parameters. It is crucial to explore the implications of this remarkable feat with respect to Human Resources (HR) practices in India, as HR stands at the forefront of turning the nation’s achievement into a sustainable workplace transformation. Therefore, this article understands a few ways in which this decline in multidimensional poverty can reshape HR practices and associated workforce dynamics across the country.

Enhancing HR Practices Through Education

Education, being a vital component in alleviating poverty, profoundly impacts HR practices, employee development, and the growth prospects of organizations. As millions come out of the grasping hands of poverty, more access is given to individuals to get educated, enhance skills, and develop careers. This results in a larger pool of skilled and qualified candidates, which further brings a wider spectrum of expertise to organizations. A diverse and skilled talent pool can drive the growth of an organization significantly through an influx of innovation and creativity.

Educational improvements and skills training across the country can also result in greater workforce diversity fostering a more inclusive work environment. Employees become well-equipped to steer the organizations by nurturing the qualities of expertise and experience they possess in their respective areas. Employees are better prepared to take up various responsibilities by facilitating leadership development and employee empowerment.

Financial literacy is another important aspect of education, especially in the case of employees. This not only enhances career development, but also makes them aware of their entitlements and other associated nuances within the organization. Thus, education as a powerful tool for individual empowerment not only brings in a strong talent pool, but also creates a forward-thinking, motivated and productive set of workforce.

A ‘Healthy’ Workforce

The link between poverty and employee wellbeing is undeniable. As individuals escape out of poverty, their mental and physical health considerably improves. An organization is always in need of a happy and healthy workforce. This results in lower absenteeism and turnover rates, making employees flourish both in their personal and professional lives.

Access to proper healthcare and medical facilities contributes significantly to the female workforce in the organization as well. The health component of the multidimensional poverty index consists of three sub-indicators including maternal health. When expectant mothers are healthy in all terms, they are more likely to experience a positive and happy workspace. A proper work-life balance can be maintained by working mothers when there is regular and proper access to healthcare. This minimizes the disruptions caused due to circumstances of deteriorated health of employees and their families. Thus, a more family-friendly work environment can be created within organizations.

Maintaining good health not only directs toward physical health, but also to healthy minds. Mental health concerns like burnout and increased stress in employees can often lead to deteriorated productivity in employees and organizations as well. With more healthcare accessibility, employees can now afford to gain proper professional care through counselling, guidance and support programmes.

Elevating Excellence through Good Living Standards

In the given context, HR practices gain their prominence as they navigate the implications of improved living standards of the workforce. As the burden of poverty and debts reduces, employees can dedicate more energy and time to their professional productivity and enhancement. Employees who are not struggling with fundamental living challenges are better equipped to focus on their careers without financial strain and living constraints. This also allows them to enjoy a well-rounded life outside their workspace as well.

As the number of people coming out of poverty increases, stronger employee morale is created within organizations. With less financial stress, employees can volunteer in programmes and responsibilities that develop their careers and make them stable. At the same time, employees will not be stagnant in their job roles. When employees can devote more time and energy to their own growth, by maintaining a work-life balance, they will be able to perform more in different performance metrics and reports. They can work well on the feedback that they receive that further shapes the employees for longer-term perspectives on their employment and prepares them to lead teams and organizations in the future.

Thus, embracing good living standards underlines the commitment of HR departments to nurturing a workforce that flourishes in all pursuits, that is, the pursuit of holistic growth.

Conclusion

India’s achievement in reducing multidimensional poverty is not only a socio-economic milestone, but also a turning point for the HR landscape across organizations. The implications are vast and multi-faceted in nature, impacting talent acquisition, skill development and a prosperous workspace. With improved access to education and healthcare, individuals emerging from poverty bring a multitude of skills and perspectives to the workforce that further drive the growth of every organization.

As employees flourish at their workspace, it not only strengthens their professional lives, but also their personal and family wellbeing by maintaining an adequate balance between the both. Thus, with the significant results yielded with respect to the reduction in multidimensional poverty, organizations are now able to tap into new HR resources that can enable a positive and engaged workspace along with the commitment to chisel a brighter future for individuals, organizations and the nation.

References
• NITI Aayog. National Multidimensional Poverty Index: A Progress Review 2023
• NITI Aayog Report Claims Decrease in Multidimensional Poverty. The Hindu. Published on July 17, 2023

Jyothis Maria Franklin is PhD Scholar, IFMR-GSB at Krea University; and Pallavi Pandey is Assistant Professor - HR/OB, IFMR-GSB at Krea University.

DISCLAIMER: The views expressed are solely of the author and ETHRWorld does not necessarily subscribe to it. ETHRWorld will not be responsible for any damage caused to any person or organisation directly or indirectly.