Indian firms have started focusing on dynamic work environments as they focus on retaining millennials and Gen Z to align with their goals of work-life balance, personal growth and mental health.
According to a survey done by Deloitte India and Nasscom, many companies have dedicated some days to employees’ ‘well-being’. A report by India Technology Industry Compensation Benchmarking Survey 2024 said, “With Gen Z prioritising work-life balance, mental health and professional growth, it’s essential for companies to adapt their approaches to attract and retain this emerging talent.”
To retain young employees, companies are providing them with unlimited sick leaves, pet leaves, fitness memberships, burnout assessments and adaptive office designs. These benefits have helped tech companies to lower attrition rates significantly in 2024 than in 2023. What best worked for the companies has been the strategy of deploying enhanced employee engagement, well-being initiatives and job rotation opportunities.
Companies have focused on other areas well. Integration of AI skills, offering reward programmes, increasing women workforce have aligned with the young professionals. Firms have also introduced joining bonuses, but they are tied with a 2-year clawback. This they have done to prevent infant attrition.
The survey, conducted pan-India in over 200 companies, reveals a new pattern of tech companies who are adopting innovating ways to attract millennials and Gen-Z. According to the survey, employee engagement has been a major focus area of these tech companies. The survey also mentioned adjustments in the paymix for campus recruits to include greater emphasis on variable pay.
Tech companies are being “accommodating” with Gen Z for a “better output” and for this they have mainly focused on work-life balance and so are opting for more opportunities for the young employees to choose their own work hours and even opt for remote location.
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Tech firms offer ‘pet leaves’, ‘unlimited sick leaves’ to retain Gen Z
