1、May 2024TalentfeasibilityreportKPMG.Make the D 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarant

2、ee.All rights reserved.It is with great pleasure that I present this report,which delves into the current talent landscape in India and provides valuable insights into the factors that drive decision-making processes pertaining to office locations.In a rapidly evolving business environment,understan

3、ding and adapting to the changing dynamics of talent preferences is crucial for organizations aiming to attract and retain top talent.The findings from KPMG in Indias 2023 CEO Outlook revealed an interesting perspective on the future of work.According to the survey,a significant proportion of CEOs i

4、n India envision a future predominantly characterized by in-office work environments.While 54 per cent of CEOs in India anticipate the working environment to be an in-office model in three years,the global figure stands at 64 per cent.As the trend of employees reassessing their work preferences in t

5、he post-COVID era gains momentum,it becomes imperative for organizations to gain a comprehensive understanding of the talent landscape in India.By staying informed and effectively addressing talent requirements and preferences,organizations can strategically position themselves to attract and retain

6、 the best talent,thus maintaining a positive business outlook.To achieve this objective,we embarked on an extensive research endeavor,engaging in in-depth discussions with industry leaders and talent acquisition heads from organizations with a multi-city presence.Our research encompassed a wide rang

7、e of sectors,including Technology,BFSI,Professional Services,Manufacturing,TMT(Technology,Media,Telecom),E-commerce,automobile,Infrastructure,and Real Estate.By considering crucial parameters from both an employer and employees perspective,such as the availability of talent pool,quality of living,co

8、st of living,ease of business,attrition,and compensation,we obtained valuable insights that shed light on the critical factors that inform decision-making processes related to office locations.Throughout our study,numerous interesting and thought-provoking insights emerged,which we have highlighted

9、in subsequent sections.It is our sincere hope that this report will serve as a valuable resource for organizations seeking to establish new offices,enabling them to make more informed choices that align with the evolving preferences of the talent pool.I extend my heartfelt gratitude to all the indus

10、try leaders who graciously shared their valuable insights and precious time with us.Their contributions have greatly enriched the depth and breadth of this report.Furthermore,I would like to express my appreciation to KPMG in India and my dedicated team for their unwavering efforts in researching an

11、d crafting this paper.I encourage readers to delve into the following sections,which provide a comprehensive analysis of the talent landscape in India.By leveraging the insights presented here,organizations can navigate the ever-changing dynamics of the workforce,enhance their talent strategies,and

12、thrive in the evolving business landscape.Foreword Sunit SinhaPartner and Head,People,Performance and CultureKPMG in India3 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated

13、 with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Table of contentsIntroduction3 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms aff

14、iliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.01KPMG in Indias view on talent landscape in India02Our Approach03Summary 0403040513Talent poolQuality of livingCost of livingEase of businessCompensation and attrition4 2024 KPMG Assurance and

15、 Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Indias employment landscape is undergoing a sig

16、nificant transformation.While we see Tier-1 cities being the most sought out cities for transformational roles,Tier 2&satellite cities*are also emerging as new centers of talent.This transformation has led to the establishment of organisations beyond metro cities.This shift can be attributed to seve

17、ral factors:Introduction4 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserve

18、d.Tier-1 cities offer roles for specialised skillsets while Tier-2 and other satellite cities offer an increasing availability of a diverse talent pool.A study revealed that 54 per cent of employers express their intention to hire candidates from these citiesTalent poolThe government has taken proac

19、tive measures to facilitate business development in India.The establishment of Special Economic Zones(SEZs)aimed at promoting the IT industry in non-Tier-1 locations have led to overall growthGovernment supportThe KPMG Indias 2023 India CEO Outlook reveals that 54 per cent of CEOs in India,compared

20、to 64 per cent globally,anticipate a significant shift in the working environment,with employees transitioning from hybrid to more in-office arrangements in the coming 3 yearsWorking environmentMany cities are investing in infrastructure development projects to improve connectivity,transportation,an

21、d amenities.These improvements make these cities more attractive for businesses,offering better logistics,market access,and a higher quality of life for employees.Infrastructure development*Refer to appendix for bifurcation of cities01020304Source:1.KPMGs 2023 India CEO Outlook,KPMG India,October 20

22、232.Talent Availability in Indias Tier-2 Cities,India Briefing,Manah Popli,October 202355 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a

23、 private English company limited by guarantee.All rights reserved.As the talent in India is growing significantly in every corner of the country,KPMG in India believes it has become necessary for organisations to be updated with the latest trends in the market and deep dive into the factors that inf

24、luences their decision to choose their work locationsKPMG in Indias view on talent landscape in India01020304A study analysed internal company job postings on platforms like LinkedIn and job portals and found that in January 2023,active job postings in Tier-2 cities experienced a notable increase of

25、 12 per cent.This data reinforces the growing importance of career opportunities in Tier-2 cities and satellite cities.This leads employers to branch out or establish their businesses beyond metro cities.Thus,employers need to carefully research and analyse business opportunities pan India.Critical

26、Factors from employers perspectiveThe significance of these factors may vary depending on the industry,specific company goals,and the unique characteristics of each companyTalent AvailabilityEase of BusinessSocial InfrastructureMarket PotentialOperational CostCritical Factors from employees perspect

27、iveThese factors impact employees career growth opportunities,salary considerations,work-life balance,sense of belonging,and convenience of travel and transportation.Market CompetitionCost of LivingSocial CultureProximity to HomeQuality of LivingSource:Talent Availability in Indias Tier-2 Cities,Ind

28、ia Briefing,Manah Popli,October 202366 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All r

29、ights reserved.In pursuit of the growing talent in India,KPMG in India,during the months of February and March 2024,conducted in-depth discussions with industry leaders across diverse sectors to gather insights into the critical factors influencing decision-making processes regarding establishing bu

30、sinesses in Satellite cities and Tier-2 cities.Our approach01040302Data collected from 40+companies spread equally across 10+sectorsOne-on-one interactions with HR and business Leaders of leading firmsKPMG in India Research with analysis of published reportsThe study was carried out keeping in view

31、the crucial factors from an employer as well as employees point of view.Our discussions and research covered a variety of parameters which has been elaborated in the following:Talent poolThe availability of skilled talent in various areas and factors important for different categories of working pop

32、ulationQuality of livingFactors such as safety,connectivity,cleaner environment,recreational activities,healthcare facilities,education,etc.CostThe cost of living for employees and operating cost of doing business for employersEase of doing businessEfficiency of the regulatory environment and admini

33、strative processes to support a businessCompensation and attritionUnderstanding how these factors affect compensation and attrition basis locations77 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independe

34、nt member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Talent pool01040302Significant transformations such as expansion and diversification are occurring in the talent market of India due to global economic changes,industries dri

35、ving job growth,technological advancements,and evolving workforce expectations.Hence,it is crucial to understand the elements influencing talent pool and its availability.As of 2023,India possesses a population exceeding 600 million individuals aged 18 to 35 with approximately 65 per cent of the pop

36、ulation falling below the age of 35This demographic advantage in India is projected to remain significant until 2055-56,with its peak expected in 2041 when the working-age(18-60)is anticipated to account for 59 per cent of the total populationAs a result,India will continue to benefit from an extens

37、ive and remarkable talent pool spanning the entire country.Emerging SectorsOur interaction with the leaders on factors determining the availability of unique Talent Pool in India were focused on:Employment GrowthTalent Pool AvailabilityIndia has demonstrated its resilience by achieving an impressive

38、 annual GDP growth rate of over 6 per cent,positioning it as the fastest-growing major economyEncouraging signs of progress can be observed in the job market,particularly within sectors such as Automotive,Manufacturing,and BFSI,indicating a dynamic recoveryThe projected employment rate in India for

39、2024 stands at 51.60 per cent.Consequently,organisations will need to explore opportunities in tier 2 and satellite cities to adapt to the evolving employment landscape in our country.Source:World Development Indicators,World Bank,World Bank,December 202388 2024 KPMG Assurance and Consulting Service

40、s LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.IndustryLocationsTalent poolThrough our study of talent availabili

41、ty in different parts of the country,we observed a presence of unique talent pool in the following locations:High Talent Pool AvailableThus,we see Mumbai,Delhi and Bengaluru attracting talent from diverse industries and having maximum concentration of talent while other cities like Hyderabad,Pune,Gu

42、rugram and Navi Mumbai rising to meet growing demands and serve as a potential hub for recruiters.Further,basis our interactions with the industry leaders,we also perceived that the nature of work(which has a symbiotic relationship with the availability of talent pool)influences the decision criteri

43、a of organisations in the following manner:Moderate Talent Pool AvailableNature of WorkTransactionalTacticalTransformationalHence,roles with high value are located near the headquarters which is mostly in Tier 1 locations whereas doer roles are placed in other parts of the countryITBFSITelecom&Media

44、Professional ServicesManufacturingE-CommerceAutomobileInfrastructureMetal&MiningOil&GasBengaluruMumbaiMumbaiMumbaiChennaiBengaluruChennaiHyderabadKolkataAhmedabadHyderabadNavi MumbaiGurugramPuneHyderabadPuneDelhiBhubaneswarJaipurNavi MumbaiPunePuneBengaluruGurugramGurugramDelhi/NCRBengaluruRaipurGuw

45、ahatiPuneNavi MumbaiBengaluruGurugramHyderabadMumbaiGurugramMumbaiDelhiHyderabadPuneAhmedabadTier 2 CitiesTier 1 and Satellite Cities 0104030299 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent me

46、mber firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Talent poolAs we see presence of unique talent pool across locations which also varies basis skillset,it gives employers the opportunity to leverage local talent and save costs90%

47、Work Experienceof the companies,basis our interactions indicated that tapping into the talent pool of satellite cities has been highly beneficial for them as it enables them to widen their talent base and attract high-quality candidates who are seeking opportunities close to their families or suppor

48、t networksWe have seen how different factors are influencing employees preference when it comes to their working location.However,different factors play prevailing role at different stages in their career trajectory.This is summarised in the table below:1st Priority2nd Priority3rd Priority15+years5-

49、15 years0-5 yearsProximity to HomeMarket CompetitionCulture,Quality&Cost of LivingMarket competition is considered by employers as it is a necessary factor for them as well to analyse while establishing a business.It enables them to make informed decisions,differentiate themselves,identify growth op

50、portunities,and develop strategies to succeed in the marketplaceEmployers should ensure that quality of living,culture and cost are also heavily analysed from employees perspective as it would enable them make better business decisions and target employees accordingly which in turn will aid in retai

51、ning top talent for diverse roles in their business010403021010 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company l

52、imited by guarantee.All rights reserved.Quality of livingWith 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

53、 define quality of living,including ease of connectivity,commute time,crime rate and safety,healthcare infrastructure,and air quality index.3rd PrioritySource:Comparative analysis of cities basis the factors determining Quality of LivingCity-wise ranking for different factors defining quality of liv

54、ingThese cities have performed exceptionally well on factors promoting Quality of Living:Chennai,Bengaluru,Pune and Mumbai have emerged as the safest city for women at workplaceWith the advent of MTHL and UER 2,Navi-Mumbai and NCR are expected to see further improvement in Traffic IndexIndore,Surat&

55、Navi Mumbai secured the firsts&third rank respectively in Swachh Survekshan 2023During our interactions with the industry leaders,it was observed that while organisations acknowledge the importance of quality of living,the most crucial factors remains the ones with direct impact on business and stra

56、tegic goals6 out of every 10 leaders agreed that their approach to quality of living revolves around finding solutions that strike a balance between employee satisfaction and meeting core business requirementsTraffic IndexSafety IndexHealthcare infrastructureAir quality indexOverall Quality of Livin

57、gBangalore34596Chennai59175Delhi11632Gurugram83824Hyderabad76357Mumbai25761Navi-Mumbai97449Noida 42213Pune68988City NameCity-wise ranking for different factors defining quality of living1.Swachh Sarvekshan 2023:Navi Mumbai Bags 3rd Cleanest City Title In Country,Free Press Journal,Bhalchandra Chorgh

58、ade,January 11,20242.Women find Chennai safest for less crime,more jobs;Delhi enters 10 safe cities list,Money Control,Abhishek Sahu,January 04,2024 010403021111 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization

59、of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Cost of livingIn todays rapidly evolving economic landscape,the cost of living has become a critical factor influencing the financial well-being of individuals.It

60、 plays a pivotal role in shaping the lifestyle,aspirations,and overall quality of life for employeesSource:Current Cost of Living Index,Numbeo,January 2024Employees shared that while considering the cost of living in a city,their decision revolves around a couple of factors including residential ren

61、t and property indices,local purchasing power index and finally the overall cost of essentials comprising of prices of goods,utilities and transportationThough cost of living expenses vary for different cities in India.95 per cent of the leaders agreed this difference does not lead to a change in co

62、mpensation in India.Our interaction with the leaders and employees from different organisations highlighted cost of living being a crucial parameter from an employees perspective.Employees also shared different parameters that they consider while relocatingComparative analysis of metro cities basis

63、the factors determining Cost of LivingModerately PreferableMostly PreferableCity NameCity-wise ranking for different factors defining cost of livingCost of Essentials IndexRent IndexProperty IndexLocal Purchasing Power IndexBengaluruChennaiDelhiGurugramHyderabadMumbaiNavi-MumbaiNoidaPune010403021212

64、 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Ease of businessWhile d

65、iscussing about 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 supportSource:Seven reasons why location is imp

66、ortant,JLL,Feb 2024Leasing rates can have a significant influence on the decision to set up an office in a new location,as it is the second largest expense after labour costsOrganisations look for business parks with an existing or flourishing ecosystem,the presence of hospitals and restaurants in p

67、roximity,and with good connectivity.NaviMumbaiChennaiHyderabadPuneGurugram BengaluruMumbaiComparative ranking of commercial renting leasing ratesRental Price low to highUnlike 2000s,the attractiveness of Special Economic Zones(SEZs)in the current market,where industry experts employ a cost-benefit a

68、nalysis approach,is changing.These leaders shared their perspective,while tax rebates and simplified regulatory procedures are often considered crucial factors supporting SEZs,their overall appeal needs to be evaluated.85%of the leaders today adopt a comprehensive cost-benefit analysis to weigh the

69、advantages against potential challenges and ensure that office locations align with the strategic goals and financial considerations in the current market climate.85%010403021313 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG glo

70、bal organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.80%Compensation and attritionCompensation as an important parameter when establishing or expanding business to tier 2 and satellite cities in Ind

71、ia as it helps organisations remain competitive and address attrition,ensure equity and fairness,comply with labour laws,and create a positive work environmentHR Heads state that CCA has been declining over the years and only few employers offer it.It is now adjusted in the basic pay itself.Hence,co

72、mpensation range is more or less same for same roles across country.Thus,employees are offered packages within the same range across all of their branches in order to avoid differentiation.leading participating firms across sectors share that maximum attrition occurs in Tier 1 cities like:7/10City C

73、ompensatory Allowance or CCA has been a lever deployed by companies for its middle or lower-level employees to compensate for the higher cost of living in metropolitan or Tier-1 cities.In some cases,CCA has also been offered for employees working in Tier-2 and satellite cities as well.The pay scale

74、of higher-level employees and top management already accounts for their high standard of living hence they are not offered CCA.We observed through our interactions that 80 per cent of the companies support their employees with relocation allowances and also have tie-ups with established restaurants,

75、gyms,clubs,etc.as a part of employee well-being practices which makes the move smoother for employees and also helps in controlling attrition rates.80%This can be attributed to better job opportunities specifically for transformational rolesOur study revealed that as there is no differentiation in c

76、ompensation range across cities,employees tend to opt for cities having low cost of living as it reduces the financial pressure on individuals.Upper management or employees with critical roles are seen to migrate to metro cities.Hence,this reemphasises the distribution of growing talent across our c

77、ountry.010403021414 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Basi

78、s 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.Summary01030204Apart from Mumbai,Delhi NCR,Bengaluru,Hyderabad and Chennai,we s

79、ee cities like Navi Mumbai and Pune attracting diverse talent across India for critical skill setsWhile Chennai,Bengaluru,Pune and Mumbai have emerged as the safer city for women at workplace,Navi Mumbai,Chennai,and Pune are amongst the safer ones to live inWhile Chennai,Hyderabad and Delhi offer th

80、e lower cost of living index than the others,Bengaluru,Gurugram,and Pune offer the maximum local purchasing power to the residentsWhile Navi Mumbai ranks high in terms of traffic index,with the inauguration of MTHL and Metro and the upcoming airport,Navi Mumbai is expected to see a remarkable develo

81、pment in connectivity14 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.

82、1515 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Basis our study,we

83、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.Efficiency of the regulatory environment and administrative processes to support a businessInd

84、ore,Surat&Navi Mumbai secured top 3 rank in Swachh Survekshan in 2022 and 2023Navi Mumbai,Chennai and Hyderabad offer highly competitive commercial leasing prices promoting ease of doing businessSatellite cities have a lower attrition as compared to Tier 1 cities which mitigates business continuity

85、risk and minimises the cost of backfillSatellite cities offer a better cost of living index as compared to Metro cities which coupled with the accessibility of talent for transformation roles enhances its attractiveness as an alternate commercial hubTherefore,organisations looking at establishing or

86、 branching out to different locations should factor in availability of talent essential for its value chain,physical and social infrastructure,ease of doing business,the needs of the talent with respect to cost and quality of living.Summary15 2024 KPMG Assurance and Consulting Services LLP,an Indian

87、 Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Navi Mumbai,Pune and Bangalore have a better quality of Living when compared with

88、 other metro cities in India010302041616 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All

89、 rights reserved.AppendixCities mentioned in our report have been categorised in the following manner:TIER 1 CITIESMumbaiDelhiBengaluruHyderabad PuneKolkataChennaiTIER 2 CITIESBhubaneswarJaipurRaipurGuwahatiIndoreChandigarhKochiThiruvananthapuramAhmedabadVadodaraSuratSATELLITE CITIESNavi MumbaiGurug

90、ramNoida16 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Acknowledgeme

91、ntsReport By:Sunit Sinha Mandar Dani Mandar Pawde Isha Blossom Smriti RajpalBusiness ConsultingPeople&ChangeClients and Markets Darshini Shah Khushi KansaraKPMG in India17 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global org

92、anization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Sunit SinhaHead of PPCE: The information contained herein is of a general nature and is not intended to address the circumstances of any particular indi

93、vidual or entity.Although we endeavor to provide accurate and timely information,there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.No one should act on such information without appropriate professional advi

94、ce after a thorough examination of the particular situation.The views and opinions expressed herein are those of the quoted third parties and do not necessarily represent the views and opinions of KPMG in India.KPMG Assurance and Consulting Services LLP,Lodha Excelus,Apollo Mills Compound,NM Joshi M

95、arg,Mahalaxmi,Mumbai-400 011Phone:+91 22 3989 6000,Fax:+91 22 3983 6000.2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English c

96、ompany limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization.This document is meant for e-communication only.(001_THL0424_KK) Follow us on:KPMG in India contacts:Akhilesh TutejaHead Clients&MarketsE:Access our latest insights on KPMG Insights Edge