What is the strongest motivator for Indian employees to leave their employer? As per a Randstad report, it is the desire to improve work-life balance. In fact, this motivator is only growing in importance. This year, 51 per cent of the respondents have indicated this as the driver for leaving an organisation, which is two per cent more than last year.
About 38 per cent employees in India feel that they lack career growth opportunities; that their career path is limited. About 34 per cent feel they are paid inadequately; that their compensation is not keeping pace with the cost of living. Thirty per cent wish to leave because of lack of flexibility. About 29 per cent of the employees feel that their organisation offers no perks such as smartphones, company discounts, gyms or fitness facilities, etc. An equal number were quitting because they received an irresistible offer. Those who take long to commute to and from work form about 28 per cent of the respondents, and wish to leave their employer for this very reason.
There are also some employees (26 per cent) who have no interest in their job primarily because it is not challenging enough and does not test their skills or even require them to apply their skills.
Twenty-five per cent of the employees say their organisation does not align with their personal values when it comes to diversity and inclusion. About 23 per cent feel their organisation lacks financial stability; that they are afraid they will be laid off. An equal number are not happy with the leadership or competency of their leadership. Eighteen per cent wish to leave because they do not get along well with their managers.
Most employees were compensated in some way for the rising cost of living. Twenty-nine per cent were pleased with how their salary increment managed to cover the rise in cost of living. About 40 per cent admitted that only part of the rising costs were covered by the pay hike they received. Nine per cent received a one-time sum from their employer to compensate for inflation. Six per cent admit to receiving some vouchers from their employer that gave them access to certain free products. Sixteen per cent did not receive any compensation or support from their employer to tide over the effects of inflation.
However, as per the survey, employees receiving no compensation are more inclined to move on from their present company (61 per cent) compared to employees who were compensated (42 per cent) for inflation. The likelihood of these 61 per cent citing low compensation as a reason to quit (48 per cent) is higher than those who were compensated (31 per cent).
Gen X is more likely to have not received any compensation (24 per cent) for inflation, compared to Gen Z (13 per cent) and Millennials (12 per cent).
Randstad’s employer brand research country report 2024 covered 3507 respondents in India, comprising 25 per cent Gen Z, 45 per cent Millennials, 27 per cent Gen X and three per cent Baby Boomers.
1 Comment
Why the title with “Indian Employees…”? Any employee in any company, anywhere leaves for variety of reasons. It is not right to highlight “Indian employee”. It almost seems that you have also fallen prey to colonial mindset!
There is no evidence that so called non-Indian employers are any better with empathy or remuneration. Enough examples abound for such companies in India to have ordered layoffs or fired employees in pursuit of profits!
I have headed number of foreign JVs in India. Still do. In every case, I have had to hold firm against so-called headcount reporting for reducing manpower cost, which is usually less than 10% of operating costs in non-IT sector industry. Often this demand for cost cutting is to show that some action is being taken, even though the impact of such figures is minuscule in larger corporate Balance Sheet.