Employees across sectors increasingly value workplace culture and leadership trust over compensation, reshaping retention strategies in Indian organisations.

66% of employees prioritise workplace quality over pay: Report

Kathakali Dutta
3 Min Read

Workplace quality has overtaken pay as a deciding factor for employees, with 66 percent saying they would accept a salary cut in exchange for better conditions and flexibility, according to a new survey by Great Place To Work India released on Monday.

Workplace quality tied to rising exit intent

The findings point to growing churn risk across organisations. About 62 percent of employees in typical workplaces are actively searching for new roles. Among those considering a move, 70 percent expect to leave their current employer within the next year.

This signals a shift in employee priorities. While compensation still matters, daily work experience now plays a larger role in decision-making. As a result, organisations face pressure to address culture gaps rather than rely only on pay revisions.

Employees preparing to leave also report lower satisfaction. Scores were 20 to 27 percent lower compared to those planning to stay. The dissatisfaction centres on fair pay, work-life balance, recognition, and management communication.

Workplace quality concerns vary by sector and age

Intent to switch remains especially high in certain industries. Healthcare, biotech, and pharmaceuticals stand out. In these sectors, 81 percent of employees considering a change expect to move within 12 months.

Younger professionals show similar trends. Around 76 percent of Generation Z employees plan to change jobs within a year. Among millennials, 68 percent expect to do the same.

Supervisors and frontline managers also report high mobility. About 73 percent of those contemplating a switch expect to exit their roles in the near term. This raises concerns around leadership continuity and team stability.

Culture plays a decisive role in employer evaluation. About 87 percent of employees thinking about leaving cited workplace culture as a key factor when assessing new opportunities.

Balbir Singh, CEO of Great Place To Work, said the data shows a direct link between culture and retention. He noted that six in 10 employees without a positive workplace experience plan to leave. However, that figure drops by half in organisations with strong environments.

Leadership confidence also reduces attrition intent. The likelihood of employees leaving falls by 16 percent when trust in leadership is strong. It drops by another 12 percent when employees see meaningful opportunities for innovation at work.

Together, the findings underline how workplace quality now shapes retention, resilience, and long-term performance.

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