NEW DELHI — Indian companies are outpacing global peers in organizational agility, restructuring efforts, and optimism around artificial intelligence, but concerns over fair compensation are emerging as a key challenge to retaining talent, according to a new report released Tuesday.
The report by Mercer found that 54 percent of C-suite leaders in India expect artificial intelligence to play a primary role in transforming businesses and driving innovation over the next two years, compared with 42 percent globally. In addition, 66 percent of HR leaders in India plan to redesign work to optimize human-machine collaboration.
Based on responses from nearly 12,000 participants worldwide, including 650 from India, the report highlights a strong push among Indian companies to streamline organizational structures. About 80 percent of Indian C-suite executives plan to simplify reporting lines, significantly higher than the global average of 59 percent, while 76 percent aim to flatten hierarchies compared with 44 percent globally.
The shift toward more flexible structures is also reflected in team design. Around 64 percent of Indian respondents expect to create self-organizing teams, compared with 49 percent globally. Overall, 48 percent of Indian respondents rated their organizational agility as high, versus 29 percent worldwide, with particularly strong scores in business agility at 52 percent and product agility at 42 percent.
India’s workforce is also notably younger, with Generation Z accounting for 43 percent of employees, compared with 33 percent globally.
Despite these strengths, compensation remains a major concern. The report found that 54 percent of employees cited pay as the top reason for considering leaving their organization, even as Indian workers place significant importance on purpose-driven work.
About 74 percent of respondents said working for an organization with a purpose they are proud of helps them thrive, compared with 42 percent globally. However, 44 percent of employees in India said they believe their pay is unfair.
“The drive for fair and competitive compensation is also evident in employees’ desire for internal equity, with 37 percent wanting assurance that they are paid the same as peers for similar work,” the report said.
To address these concerns, HR leaders in India are more likely than their global counterparts to focus on closing pay equity gaps between new hires and longer-tenured employees in 2026, the report added. (Source: IANS)
