5 minute read 31 May 2022
Green Hydrogen policy

How the new normal is empowering workforce in India

By Anurag Malik

EY India People Advisory Services Partner

Partner with EY’s People Advisory Services practice in India. A seasoned HR consulting professional, and passionate about the role of digital technology in the HR function.

5 minute read 31 May 2022

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  • Unlocking India's green hydrogen ambitions

The EY 2022 Work Reimagined Survey shows that 84% of employees say the organization’s culture has improved since the start of the pandemic: 

In brief

  • EY 2022 Work Reimagined Survey shows employees now have greater influence over employment terms; more than half of employees expressing the need to change their job in next 12 months.
  • 36% of employer respondents say they want employees to come back to the office five days a week; 27% of employees want to work remotely for less than five days a week.
  • 84% of employees believe that their organization’s culture has improved since the start of the COVID-19 pandemic, employers’ confidence in their own company culture was at 57%.
  • 96% of employers have planned changes to ensure the safety and wellbeing of their employees.

Talent in India feels more empowered and is ready to take control of the job market, with more than half  of them expressing the need to change their jobs in the next 12 months. This is driven mostly by desire to receive a higher pay, better career opportunities and flexibility amid inflation, a shrinking labour market and an increase in jobs offering flexible working, highlights our 2022 Work Reimagined Survey.

As countries emerge from the COVID-19 pandemic, employees are gaining significant influence over their employers and that their “wish list” from potential employers is changing. The EY 2022 Work Reimagined Survey captures views of more than 100 employers in India and more than 1500 employers and 17,000 employees across 22 countries and 26 industry sectors. The findings explore leading motivators of workforce turnover or retention and highlight areas of focus for leaders looking to lean into the opportunities of the moment.

79% of employees surveyed believe that changes should be made to total rewards, given the impacts of the pandemic.

Operating in a changing world

86% of employer respondents say that the employee turnover has increased in the past 12 months. The groups that are most expecting to leave their jobs identified as being Gen Z or millennials in India (64%).

Flexible working arrangements, which were by far the most important criteria driving employee moves according to last year's survey, are now less of a motivator because most people currently work for organizations that provide some level of flexibility. Only 17% want remote-work flexibility from a new employer, while 21% think well-being initiatives would persuade them to move. The perceptions of employers and employees on aspects, such as workforce culture, productivity, career advancement, and mobility differ significantly. This might exacerbate an already fierce hunt for talent.

Business travel in new normal

The need for compensation outweighs the desire for flexibility

The primary motivation  for employees seeking new jobs, according to the survey, is now a desire for higher pay. With record inflation, in many countries around the world, 24% of those searching for new roles say that a salary increase is their main objective, and 29% are looking for career advancement. 25% are looking to change their employers for quality of leadership and overall brand value.

18% employers surveyed are struggling to address the “pay equity” issues between internal and external markets.

Shifting views on culture and productivity

With a more empowered workforce and the labour market appearing increasingly liquid, the surveyed employers are losing confidence in how their businesses are building the company culture. 

The desire amongst employees to seek out new roles persists even though they hold relatively upbeat views about company culture. The number of employees who believe their organization’s culture has improved has risen to 84% since the start of the COVID-19 pandemic. At the same time, employers’ confidence in their own company culture was at 57%.

Growing skills and talent gaps

64% of employer respondents agree that it is important to have a strategy in place to match talent and skills to future business needs. 25% believe that there needs to be more flexibility provided in the paid time off will help address turnover.

Returning to the office

Despite the continuing shift towards flexible working models, 36% of employer respondents say that they want employees to come back to the office five days a week. 27% of employees want to work remotely for less than five days a week. 53% of employees want employers to provide them with the ability to work from anywhere.

Boost culture and productivity from new ways of working

The survey reveals that a large population of “optimist” employers — 96% agree that they are agile when it comes to responding to new ways of working. 96% of them have planned changes to ensure the safety and wellbeing of their employees. 25% of employers are reviewing their criteria for hiring or promotion to ensure a diverse pipeline. 83% of respondents think that employers have taken steps to have a diverse and inclusive workforce, while the percentage globally stands at 65%.

  • Reimagining your workforce: key focus areas

    • Operationalize hybrid models: Structuring job categories and approach to new ways of working with compliant tax, payroll, and regulatory processes.
    • Reinvent the workplace: Integrated workplace plan with office and network of space enabled with leading technology and amenities.
    • Create the work-technology experience: Provide tools for collaboration, productivity and learning to match the personal with the work-tech experience.
    • Reshape and optimize programs and career frameworks: Update total rewards and career progression to reflect pandemic learnings to retain and attract.
    • Define culture and organizational networks: Define key behaviors and identify network of influencers in a physical and digital world.

Final thoughts

Employers must focus on developing trust and providing a long-term people experience, since research has continually demonstrated that trust is the ultimate currency in business. If businesses can address issues, such as pay parity, attempts to enhance culture and productivity will be a step in the right way toward retention.

The EY 2022 Work Reimagined Survey shows that post the pandemic, employees are more empowered to select jobs for themselves. As employers shifted gears providing more flexible work options, there is more that they will need to invest in — that includes higher pay and overall brand building of the organization.

Summary

Reaching a consensus between employer and employee expectations requires a cross-functional strategy that considers both physical and digital workspace. The COVID-19 pandemic has led to drastic changes in the way we work. There is now a strong need to find the right balance for both employers and employees by figuring out mutually convenient ways of working and growing professionally. 

About this article

By Anurag Malik

EY India People Advisory Services Partner

Partner with EY’s People Advisory Services practice in India. A seasoned HR consulting professional, and passionate about the role of digital technology in the HR function.