73 pc Indian employers aware of rising living costs' impact on workers: Report
New Delhi, June 9
Indian employers are increasingly noticing the impact of rising living costs inside the workplace and nearly three-quarters say these costs are affecting employees within their organisation, according to a report released on Tuesday.
More than half (56 per cent) employers report growing salary expectations from employees, while over one-third (36 per cent) have seen increased demand for flexible work arrangements.
Yet despite recognising these pressures, most organisations have not significantly adapted, said Indeed's latest 'Cost of Living Survey.'
Moreover, about seven in 10 employees (68 per cent) say their current income does not comfortably support their lifestyle. Within this group, 32 per cent say their salary is only just enough to manage expenses, 24 per cent describe their finances as difficult to manage, and 12 per cent say they are experiencing significant financial stress.
The pressure appears to be intensifying over time. Two in five employees (41 per cent) say they feel more financially stressed today than they did two years ago, suggesting that rising expenses are continuing to outpace financial confidence for many workers, the report mentioned.
"For employers, this could be an opportunity to better understand how workforce expectations are evolving. Compensation remains important, but employees are increasingly evaluating the overall quality and sustainability of work," said Sashi Kumar, Managing Director, Indeed India.
As financial pressure grows, many workers are taking a more proactive approach to income security. More than one-third of employees (36 per cent) say rising living costs have made them actively seek or remain open to better-paying opportunities.
At the same time, secondary income streams are becoming increasingly common.
Fourteen percent of employees say they regularly earn through side work or freelancing, while another 19 per cent do so occasionally. A further 24 per cent say they are considering starting an additional source of income.
"Taken together, this means nearly six in 10 employees are either already supplementing their primary income or actively considering doing so reflecting a broader shift toward financial diversification rather than reliance on salary growth alone," the report noted.
— IANS
Reader Comments
Interesting report. Back in Canada, we have similar challenges but the social safety net is stronger. India's workforce is incredibly resilient – 68% struggling but still pushing forward. The demand for flexible work is universal though, that's where companies can make a real difference without huge costs.
As a working mother in Pune, I feel this deeply. Daycare costs, school fees, groceries – everything has shot up. I asked my HR for flexible hours and they said "let's see." That "let's see" has been going on for 6 months now. Companies talk about employee wellness but where's the action? 🙄
The 14% doing regular side work is probably underreported. In Delhi-NCR, almost everyone I know has some gig – from online tutoring to driving for Ola on weekends. The problem is that basic salaries haven't kept pace with real inflation for at least 5 years. Corporates need to reset their compensation benchmarks, not just give token hikes.
I moved from London to Bangalore last year for work. The cost of living difference is narrowing fast – especially when you factor in quality of life. Indian employers could learn from European policies on work-life balance. That said, the entrepreneurial spirit here is incredible; the 36% seeking better opportunities shows people aren't giving up.
Salary expectations are growing because rents, fuel, and food prices are growing! It's simple economics. What frustrates me is that companies post record profits but still say "budget constraints" for hikes. And the demand for flexible work isn
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