Construction Industry News
KPMG in India has unveiled 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, stated, “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, organizations 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:
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.
The survey was conducted by KPMG in India in February and March, the team engaged in extensive conversations with HR leaders and talent acquisition heads from more than 40 companies spanning over 10 sectors, gathering valuable qualitative insights. This study, conducted by KPMG in India, was driven by rigorous research and analysis of published reports. The research focused on examining critical factors from both employee and employer viewpoints, including the talent pool, quality of living, cost of living, ease of doing business, compensation structures, and attrition rates. This comprehensive approach allowed the team to gain deep insights into the dynamics and challenges faced across various sectors and regions, providing a holistic understanding of the current landscape and future trends. Satellite towns are becoming increasingly attractive due to their competitive commercial leasing prices, availability of diverse talent pools, lower attrition rates compared to tier 1 cities, and better quality of living factors such as safety, connectivity, and healthcare. Additionally, these satellite towns provide a better work-life balance for employees, with proximity to family and support networks, while still offering diverse career opportunities.
This comprehensive Talent Feasibility Study highlights the gradual ascent of satellite cities on the horizon. At KPMG in India, we recognize the importance of staying informed and adapting proactively to the changing talent landscape. We hope that this report serves as a valuable resource for organizations seeking to make informed decisions about their talent strategies and office locations. As organizations contemplate establishing or expanding their presence in diverse locations, it is crucial to meticulously consider the availability of talent crucial to the value chain, robust physical and social infrastructure, facilitative business environment, and the evolving needs of talent in terms of cost and quality of living.
