64% Indian workers likely to stay if given good organizational culture, finds SHRM’s latest Global Workplace Culture Report
39% cite inadequate pay as a primary reason for seeking new employment
New Delhi, 12 December 2023: According to the recent research conducted by SHRM on Global Workplace Culture, India has emerged as the leading country in terms of workplace culture. The ‘State of Global Workplace Culture in 2023 report’ highlights that 64% of Indian workers consider a positive organizational culture as a primary factor for their organizational commitment. This figure stands significantly higher than the global average of 37% among employees. The key drivers for employee retention, as identified in the study, include a favourable organizational culture, job security, and fair treatment.
Commenting on the State of Global Workplace Culture in 2023 report, Ms. Achal Khanna, CEO – SHRM India, APAC & MENA, said, “Our research brings forth compelling insights into how employees across various countries evaluate their employers on different facets of organizational culture. Specifically in India, the data reveals a noteworthy trend, with a significant number of employees expressing high ratings across all five dimensions: Respectful Workplace Interactions, Good Manager Communication, Work/Life Integration, Career Fulfilment, and Equitable Leadership Practices. This indicates a significantly positive perception of organizational culture among Indian employees. Notably, the ratings in India surpass those of other countries examined in the study, underscoring the robust nature of workplace culture in our region. As organizations seek to optimize their work environments, these findings emphasize the success and strengths of India’s workplace culture, setting a benchmark for others to aspire to.”
The 2023 report on the State of Global Workplace Culture delves into the current landscape of workplace culture worldwide and underscores its significance for organizations in both employee attraction and retention. In the midst of the unprecedented “Great Resignation” and global challenges, the report has delved into workplace culture trends across 12 countries, with India emerging as a significant contributor. The study, based on 1,000 responses from India out of a global sample of 11,080 participants, provides nuanced insights into the dynamics of India’s workplaces against a backdrop of global uncertainties.
Despite the economic upheavals, rising inflation, and supply chain disruptions that characterized 2022 and 2023, the study reveals that workplace culture perceptions in India remained notably positive. An impressive 80% of Indian employees rated their organizational culture as “good” or “excellent,” showcasing a high satisfaction level. However, the report acknowledges room for improvement, with nearly 13% providing a “slightly good” rating. The study also sheds light on the factors influencing organizational commitment among Indian employees, with 39% citing inadequate pay as a primary reason for seeking new employment.
As per the research findings, Indian employees place great importance on factors such as a positive organizational culture, job security, fair treatment, and opportunities for career advancement. Despite boasting favourable workplace attributes like equitable leadership practices, career fulfilment, and work/life integration, Indian workers exhibit the lowest commitment ratings compared to other surveyed countries. This disparity is likely influenced by financial considerations, with employees in India being more inclined to switch employers for higher-paying roles. The report underscores the imperative for organizations to strategically nurture workplace culture, with a specific focus on equitable employer practices and addressing the unique needs and concerns of Indian employees.
The 2023 State of Global Workplace Culture report introduces the Global Workplace Culture Model, which identifies five key dimensions shaping employee perceptions of workplace culture: equitable leadership practices, career fulfilment, effective manager communication, work/life integration, and respectful workplace interactions. These dimensions significantly impact employee satisfaction, commitment, and intention to remain with an organization.
Moreover, the report emphasizes the critical need to account for cross-cultural differences in survey responses and offers organizational strategies to enhance workplace culture. Recommendations include prioritizing the key drivers of a positive culture, placing emphasis on equitable leadership practices, recognizing the significance of a fulfilling career, and strategically leveraging the dimensions of the Global Workplace Culture Model to retain high-value employees.