Indian employers are increasingly observing the effects of higher living expenses on their workforce, with 73% stating that these costs are impacting employees within their organizations. Over half of the employers note a rise in salary expectations from their employees, and about 36% have witnessed a surge in requests for flexible work arrangements. Despite this, most organizations have not made significant adjustments, as per Indeed’s recent ‘Cost of Living Survey.’
A significant number of employees, approximately 68%, express that their current income does not adequately support their lifestyle. Among them, 32% mention that their salary barely covers expenses, 24% find their finances challenging to manage, and 12% admit to facing considerable financial stress. The report highlights that financial pressure seems to be escalating, with 41% of employees feeling more financially strained today compared to two years ago, indicating that expenses are surpassing financial confidence for many workers.
Sashi Kumar, Managing Director of Indeed India, suggests that employers should grasp the evolving workforce expectations. While compensation remains crucial, employees are increasingly evaluating the overall quality and sustainability of work. As financial strain mounts, a growing number of employees, 36%, are actively seeking or remaining open to better-paying opportunities due to rising living costs.
Moreover, there is a rising trend of secondary income sources among workers. Fourteen percent engage in side work or freelancing regularly, while 19% do so occasionally. Additionally, 24% are contemplating starting an extra income stream. The report emphasizes that nearly 60% of employees are either already supplementing their primary income or considering doing so, indicating a shift towards financial diversification beyond relying solely on salary growth.
