English proficiency seen as key hiring factor for Indian companies: Report

Indian companies are increasingly prioritising English proficiency during recruitment, with a large majority of human resources leaders saying stronger language assessment tools could significantly improve workplace efficiency.

A global report on English skills released by the Educational Testing Service (ETS) found that 98 per cent of HR leaders in India believe organisations would function more efficiently if better English assessments were used during hiring.

The findings are based on an online survey of 87 HR decision-makers in India and form part of a wider study involving 1,325 HR leaders across 17 countries, including Brazil, China, France, Germany, Indonesia, Japan, Mexico, Saudi Arabia, South Korea and the United Arab Emirates.

According to the report, demand for English proficiency in the workplace has grown sharply in India over the past five years. About 97 per cent of employers said the importance of English skills has increased during this period, largely due to expanding global collaboration and cross-border business operations.

Despite the widespread use of English assessments, employers reported persistent challenges in evaluating candidates effectively. Organisations cited concerns related to quality, cost, integration with recruitment systems, and the ability to scale assessments efficiently.

The study also found limited confidence in artificial intelligence as a substitute for language skills. Most HR leaders in India indicated that AI tools cannot compensate for poor English proficiency, reinforcing the need for reliable language assessment during recruitment.

Globalisation and workplace digitisation have further heightened the demand for language competence. Around 94 per cent of HR decision-makers in India said increasing global collaboration has intensified the need for strong English skills, while 84 per cent believe poor proficiency places employees at a competitive disadvantage.

The integration of AI tools is also contributing to the trend. Nearly 87 per cent of Indian HR leaders said the growing use of AI in workplaces has increased the need for stronger English communication skills.

Globally, the report indicates similar patterns. About 90 per cent of employers worldwide consider English proficiency critical to organisational success, and 81 per cent say the adoption of AI technologies is increasing the demand for stronger workplace English skills.

The findings suggest that companies are increasingly moving towards more formal evaluation of English proficiency as part of recruitment and workforce development strategies. Employers view language readiness as an important factor in improving productivity, enabling global collaboration and strengthening competitiveness in international markets.