In 2022, employers in India paid a median salary of 9.5 per cent, which was the highest in the Asia-Pacific region. According to a salary & budget report by global advisory firm WTW, Indian employees are on track to get further raises in 2023, with 58 per cent of employers in the country having budgeted for salary increases.
And yet, attrition remains high at 21 per cent and more than 30 per cent of employees are looking to switch jobs, according to a PwC India workforce report. Millennials, who account 51 per cent of the population and make up more than 68 per cent of the total IT workforce, are driving this trend.
The new generation of workers is not drawn solely to big pay cheques and perks. We surveyed 600 jobseekers in India across various industries and sectors to learn more about how employee expectations have evolved in recent years.
88% of jobseekers prefer alternate work arrangements (remote/hybrid) and don't want to work full-time office jobs.
Hybrid/Remote Work is the Future – Whether the Employers Like it or Not
It is quite safe to say that the average Indian jobseeker has a genuine aversion towards full-time office work. Only 10.9 per cent of survey respondents selected office work as their preferred mode.
The majority were in favour of hybrid work (47.9 per cent), followed by work from home (23 per cent), and work from anywhere (18.2 per cent). When several companies ordered employees back to the office in 2022, there were instances of mass resignations.
This aversion towards office work is not at all surprising in India, where employees routinely spend over 90 minutes on their daily commute. Many jobseekers also resent having to leave behind their home states and families to work in the major metros.
With hybrid and remote work arrangements, over 66 percent of employees have discovered a prospect of better work-life balance, significant time savings, and even better job satisfaction, according to an Indeed-NASSCOM Return to Work survey.
And Indian employers are not blind to this trend. Multiple surveys by organisations like Aon, CBRE, and TeamLease indicate that around 70 per cent of Indian companies are at least open to providing hybrid work options, even though they would prefer employees to spend more time at the office.
57% of jobseekers want employers to provide better work-life balance initiatives in the workplace.
Work-life Balance and Focus on Mental Health are a High Priority for Jobseekers
A full 61 per cent of Indian employees are willing to take a pay cut or forego a pay rise if they can achieve a better work-life balance, according to a Talent Trends 2022 India report from Michael Page.
In our survey results, the majority (56.9 per cent) considered work-life balance initiatives as a top priority. They want more employee-oriented initiatives like meeting-free days, flexible leave policies, mental health days, and other family-friendly work policies.
An increased focus on sports and recreational games was another change jobseekers wanted to see in companies. This is to be expected in India, given the country’s deep and emotional attachment to cricket and other sports.
61% want leaders who are more positive, inspiring, and capable of appreciating employee efforts.
Companies Need to Address Leadership Issues to Attract Employees
To understand the leadership traits that employees wish to see in their leaders, our survey provided various positive traits for the respondents to pick. Over 61 per cent of jobseekers gravitated towards positivity and inspiring traits as their most desired qualities in a business leader.
A 2012 Assocham study indicated that 60 per cent of Indian employees worked under a boss they considered ‘abusive’. Things haven't changed much in the last decade, with toxic workplace behaviour affecting 94 per cent of Indian respondents in a McKinsey global study on workplace burnout.
There seems to be a serious lack of positive leadership qualities in Indian companies, which is also reflected in the response to our questions on the topic. Jobseekers want leaders who can help them with their strengths and weaknesses (60.3 per cent) and provide time for regular 1:1s (55 per cent).
44% of jobseekers are looking for employers who provide enhanced learning and development opportunities.
Employees Need Better Opportunities to Improve Their Career Prospects
In the response to the prime motivation to stay in an organisation, 44.1 per cent suggested learning and development opportunities as their answer, even ahead of other critical factors like an inclusive workplace (19.3 per cent) and flexible work (20.5 per cent).
A clear majority of 50.7 per cent considered ‘opportunity to grow’ as the definition of a great workplace. The demand for training courses was also quite high, at 53.9 per cent for a question on ‘expected career opportunities’.
Furthermore, the ability to provide coaching and constructive feedback was considered by 39.2 per cent of respondents as an important quality for leaders in the workplace. The implications are quite clear – companies need to invest more in upskilling, internal training, and mentorship programs going forward.
29% of employees are willing to work 8 hours a day, Monday to Friday.
The Definition of Acceptable Work Hours and Overtime is Changing
There is a clear shift in employee preference towards more flexible work arrangements. The majority (39.3 per cent) of the respondents in our survey were in favour of highly flexible 40-hour work weeks. Only just under 30 per cent were keen on strict 8 – 5 work days.
Overtime is a mandatory convention in India, particularly among new hires. But most jobseekers only prefer to use it to meet project deadlines when no other options exist (65.3 per cent). And they also expect clear monetary benefits, including compensation per hour.
A significant minority (35 per cent) also feel that leaders and organisations need to adequately recognise and appreciate overtime work. Overtime for job security was an acceptable incentive for just 12.7 per cent of jobseekers, which is a clear indication of changing perceptions.
Employee Expectations are Evolving Rapidly – Employers Need to Step up Their Game to Stay Relevant
An organisation’s workplace culture has a direct impact on the mental and physical well-being of its employees. Gone are the days when individuals were willing to sacrifice both in favour of a fat pay cheque. For the newer generation workers from Millennial and Gen Z cohorts, a better work-life balance and other associated benefits trump higher salaries.
Given the massive impact employee satisfaction levels and employer ratings can have on hiring and retention, you need to actively find ways to meet jobseekers' expectations.
- There is a strong, unequivocal desire among employees for hybrid work arrangements. The freedom to take a few days off every week for remote work will do wonders for your employer branding and workplace culture.
- Business leadership in India does not have a positive reputation. Toxic managers and workplace policies are driving many employees to seek work elsewhere. This needs to be addressed at the C-Suite level, with a greater focus on inculcating and nurturing positive leadership traits.
- Apart from fair remuneration, employees are starved for recognition and accolades for their efforts at the office. Leaders who take the time out to hold 1:1s and give acknowledgement for hard work can make a massive impact on your workplace culture.
- Career development opportunities are a decisive factor in attracting the best talent to an organisation. If you invest more in skill development and employee training now, you can expect rich dividends on the HR and recruiting front in the future.
- Mental health initiatives, better pay on overtime, and employee health insurance – these are all changes that a younger, bolder, and more empowered workforce is demanding from organisations in India.
With the onset of recession in key markets like the United States, many organisations in India may find it hard to adopt quite a few of these suggestions. But the relatively strong growth of the domestic economy should help offset some of the pain going forward.
It is up to you to create the optimal combination of workplace policies and initiatives to placate your employees, improve the overall workplace culture, and ultimately benefit your employer branding.