KPMG in India unveils key insights from its latest ‘Talent Feasibility Report,’ shedding light on the evolving talent dynamics in India and the emergence of Hyderabad, Navi Mumbai, and Pune as dynamic talent hubs. This comprehensive report, prepared by KPMG's Business Consulting, People and Change Team, provides valuable perspectives for organizations navigating the changing talent landscape.
The report underscores the evolving employment scene in Indian cities, where Tier 2 and satellite cities are gaining prominence alongside the developing metro. Factors such as talent availability, government support, infrastructure development, and cost considerations are reshaping organizations' location strategies and talent acquisition approaches.
Sunit Sinha, Partner and Head of People, Performance, and Culture at KPMG in India, shares his perspective, stating, " I am proud to present our 'Talent Feasibility Study' report, which highlights the critical importance for organizations to stay abreast of market trends and deeply analyze the factors influencing their choice of work locations. By leveraging information like commercial leasing prices, availability of talent, quality of life for employees, and other such metrics, organisations can strategically position themselves, attract top talent, and maintain a competitive advantage in a rapidly evolving landscape. The power to shape the future of talent lies in staying informed and adapting proactively."
Key Elements:
90% of the companies leveraging the talent pool of satellite cities like Navi Mumbai, Gurugram are highly satisfied with the outcomes
* KPMG India's talent availability study, reports that a unique talent pool across various locations. Mumbai, Delhi, and Bengaluru attract talent from diverse industries, exhibiting the highest concentration.
* Cities such as Hyderabad, Navi Mumbai, and Pune are rising to meet the growing demands and emerging as potential hubs for recruiters seeking diverse talent with critical skill sets.
* The nature of work influences organizations' decision criteria, with Tier 2 cities often housing transactional and doer roles, while tactical and transformational roles are located near headquarters, primarily in Tier 1 cities and some satellite cities.
* 90 per cent of companies, basis our interactions with industry leaders revealed that tapping into the talent pool of satellite cities has been highly beneficial for organizations. It enables them to broaden their talent base and attract high-quality candidates who seek opportunities close to their families and support networks.
* Candidates now prefer office campuses that offer desirable features, including modern facilities, amenities like cafeterias and recreational spaces, state-of-the-art health and fitness clubs, a commitment to sustainability, and excellent connectivity infrastructure. These factors play a crucial role in attracting top-tier talent by providing a fulfilling work environment and promoting well-being, productivity, and work-life balance.
60% of leaders focus on balancing employee satisfaction with business needs in quality-of-living strategies
* In today's work landscape, where quality of life is paramount, the KPMG report says that the key factors like connectivity, commute time, safety, healthcare, and air quality.
* Hyderabad, Navi Mumbai and Pune rank amongst top 3 in terms of overall quality of living.
* Chennai, Navi Mumbai and Pune excel in safety, attracting those seeking secure environments. Emphasizing safety fosters inclusive work cultures that attract diverse talent, boosting overall success and reputation.
* With the advent of MTHL and UER 2, Navi-Mumbai and NCR are expected to see further improvement in Traffic Index.
Cost-of-Living Differences in Indian Cities Do Not Drive Compensation Changes
* The reports states that the employees consider residential rent, property indices, local purchasing power, and overall cost of essentials like goods, utilities, and transportation when evaluating the cost of living.
* Our study shows Chennai, Hyderabad, and Delhi have lower cost of living indices, while Bengaluru, Gurugram, and Pune offer higher local purchasing power. Cost of living varies across Indian cities.
* 95% of leaders agree that cost-of-living differences across Indian cities do not affect compensation decisions.
Chennai, Hyderabad, and Navi Mumbai Lead with Competitive Commercial Leasing Prices
* Ease of doing business encompasses factors such as infrastructure development, government support, regulatory environment, and the availability of skilled resources.
* KPMG in India’s research indicates that cities like Navi Mumbai, Hyderabad and Chennai are improving business environments by offering competitive commercial leasing prices, resulting in increased attractiveness for organizations seeking to set up operations in these locations.
* Unlike the 2000’s, the attractiveness of SEZs in the current market, where industry experts employ a cost-benefit analysis approach is changing. Leaders mentioned that while tax rebates and simplified regulatory procedures are often considered crucial factors, supporting SEZs the overall appeal needs to be evaluated.
70% of Companies Report High Attrition in Tier 1 Cities Due to Competition and Career Growth
* Attrition rates are a critical factor for employers to consider while making talent feasibility decisions. High attrition rates can negatively impact organizational performance and stability.
* Maximum attrition occurs in Tier 1 cities like Mumbai, Delhi, Bengaluru, and Hyderabad due to intense competition and career growth opportunities. Satellite cities like Navi Mumbai and Noida and Tier 2 cities like Kochi and Indore have comparatively lower attrition rates which can be attributed to factors such as better work-life balance, proximity to family and support networks, and the availability of diverse career opportunities.
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