The Talent Feasibility Report delves into the current talent landscape in India, providing valuable insights into the factors that drive decision-making processes pertaining to office locations. In the rapidly evolving business environment, understanding and adapting to the changing dynamics of talent preferences is crucial for organisations seeking to attract and retain top talent.
To fulfil this objective, KPMG in India undertook an extensive research endeavor, engaging in in-depth discussions with industry leaders and talent acquisition heads from organisations with a multi-city presence. The research encompassed 40+ organisations across 10+ sectors, including Technology, BFSI, Professional Services, Manufacturing, TMT (Technology, Media, Telecom), E-commerce, Automobile, Infrastructure, and Real Estate. The report primarily took into consideration the metro cities and satellite cities: Bengaluru, Chennai, Delhi, Gurugram, Hyderabad, Mumbai, Navi Mumbai, Noida and Pune along with other cities like Ahmedabad, Surat and Kolkata. The team considered crucial parameters from both an employer's and employee's perspective, including the availability of talent pool, quality of living, cost of living, ease of business, attrition and compensation. The report highlights valuable insights that shed light on the critical factors informing decision-making processes related to office locations.
Through the study, numerous interesting and thought-provoking insights emerged, which we have highlighted in the report. Some of the key highlights across these 6 parameters are:
- Availability of talent pool: Beyond the established talent magnets of Mumbai, Delhi NCR, Bengaluru, Hyderabad and Chennai, cities like Navi Mumbai and Pune are now attracting diverse skilled talent across India. We saw how different factors influence employees’ preferences when it comes to their working location.
- Quality of living: With the increasing significance of quality of living as a crucial consideration for employees in the modern work landscape, where work-life balance and overall life satisfaction hold greater importance; we explored the multifaceted factors that define quality of living, including ease of connectivity, commute time, crime rate and safety, healthcare infrastructure, and air quality index. Comparative analysis of different cities basis the factors determining Quality of Living is shared in the report.
- Cost of living: Employees shared that while considering the cost of living in a city, their decision revolves around a couple of factors including residential rent and property indices, local purchasing power index and finally the overall cost of essentials comprising of prices of goods, utilities and transportation. Chennai, Hyderabad, and Delhi offer a lower cost of living compared to other major metros. Meanwhile, Bengaluru, Gurugram, and Pune provide greater local purchasing power for residents.
- Ease of business: While discussing the feasibility of expanding to different locations, various elements influencing the ease of business come into play. These elements include regulatory environment, market accessibility, infrastructure, workforce availability, and government support. 85% of the leaders today adopt a comprehensive cost-benefit analysis to weigh the advantages against potential challenges and ensure that office locations align with the strategic goals and financial considerations in the current market climate.
- Compensation & Attrition: Compensation becomes an important parameter while establishing or expanding a business particularly to new locations. At this point, tier 2 and satellite cities have an advantage as they help the organisations remain competitive and address attrition, ensure equity and fairness, comply with labour laws, and create a positive work environment.
Basis our study, we noticed that metro cities continue to be dominant when it comes to Talent Feasibility. However, satellite cities are also gaining momentum and evolving as promising locations for both employers and employees.
