Indian Firms Boost Profits by 7% with 'Power Skills', Study Finds
Overview
A global study by upGrad Enterprise reveals Indian companies investing in 'power skills' like problem-solving and collaboration achieve profit margins approximately seven percentage points higher. The research highlights a pronounced link between these capabilities and financial performance, despite a notable gap in the recognition of the term "power skills" among Indian respondents.
The Lead: Indian companies that actively invest in critical 'power skills' such as problem-solving, collaboration, and adaptability are reporting profit margins about seven percentage points higher than their peers, according to a new global study by upGrad Enterprise. This finding emerges as businesses worldwide navigate artificial intelligence disruption, evolving workforce expectations, and mounting productivity pressures.
Profitability Boost
The study, titled 'The Power Skills Imperative – Global Outlook 2026', posits that leadership capabilities are emerging as a significant differentiator for sustained business success, more so than technical expertise alone. The research, based on insights from over 1,600 HR and learning and development leaders across India, the U.S., the U.K., and the European Union, indicates a particularly strong correlation between power skills investment and financial outcomes in India. Organisations prioritizing these human-centric skills demonstrated superior profit-before-tax and net margins.
Global vs. India: Skill Focus and Investment Gaps
Globally, power skills have transitioned from the periphery to become a core business priority. A decade ago, only about 25% of large Indian firms invested in these areas; by 2024, nearly nine in ten L&D leaders listed them on their skilling agenda. However, India presents a unique challenge: while awareness of general soft skills is high, more than half of Indian respondents were unfamiliar with the specific term "power skills." Furthermore, the focus within India leans heavily on problem-solving (93%), with influence (18%) and empathy being notably underemphasized compared to Western counterparts. Investment intent also lags; only 43% of Indian firms plan to increase spending on power skills over the next two years, significantly lower than the U.S. (75%), U.K. (88%), and E.U. (78%).
Measurement and Training Challenges
The report also flags systemic weaknesses in how these skills are assessed and developed. Globally, measurement remains a hurdle, with India heavily relying on subjective manager ratings (93%) for assessment. Training effectiveness is another concern, as 34% of power skills programs fail to meet expectations. Employees in India, on average, spend less than five hours annually on such training, with perceived impact at a low of 13%, starkly contrasting with the E.U.'s 67%.
The Future Imperative
Srikanth Iyengar, CEO of upGrad Enterprise, stressed that technical prowess alone cannot forge resilient organisations. "The real differentiator is whether leaders can influence, align, and lead through ambiguity," he stated, noting that a worrying trend of Indian companies allocating less than 5% of their HR budgets to skilling persists. As Indian talent increasingly aligns with global benchmarks, power skills are evolving from a desirable attribute to a strategic necessity for competitive business performance.
