Indians rank 'job security' higher than more pay: study

This employee sentiment resonates across Asia Pacific region

Job security has emerged as the top driver of attraction for Indian employees, ranking above career advancement opportunities and attractive remuneration, according to a study by Towers Watson, a professional services company.

Ajith Nair, Practice Leader, Organisational Surveys & Insights, Towers Watson, said “India has one of the most highly engaged workforces in Asia, yet employees are anxious about their future financial and job security and are increasingly tired of changes in their work environment. This trend is symptomatic of the continuing global slowdown and uncertain domestic economic conditions and their implications on business and employee attitudes.

While the Indian economy may have weathered the global recession better than most other nations, individuals have been impacted by mergers and acquisitions, restructuring and cost management initiatives carried out in an effort to ensure that organisations can continue with their growth momentum.

This employee sentiment seems to resonate across the Asia Pacific region as ‘Job Security’ has been ranked among the top 2 attraction drivers across almost all the countries surveyed. Among the top drivers of retention across the region, including India, remuneration and career advancement rank high, with retirement benefits being of particular interest to Indian employees ranked third.

"The study was conducted with the objective of helping Indian companies better understand their diverse employee segments and the factors that influence employee performance on the job, by gauging changing attitudes that affect attraction, retention, engagement and productivity. ‘Job Security’ being ranked the top attraction driver in India is all the more concerning given the majority of respondents were below 30 years of age and in a mid-management level or above", stated the study.

The study observes that one in two employees in India (51%) is highly engaged, compared to 35% globally and 39% in Asia. Highly engaged workers have an intense, positive connection to their companies, marked by a committed effort to achieve work goals in environments that support productivity and maintain personal well-being.

However, 22% of Indian employees feel unsupported at work, that is, while they are willing to expend more effort, they feel they lack the tools, resources and support to do their jobs effectively. Twelve% are detached workers who lack the willingness to go the extra mile even when they may feel supported at work. Another 15% are disengaged workers, who do not have rational, motivational and emotional connection with their companies, the study adds.

About eight in 10 workers (78%) are willing to set aside a bigger slice of their pay cheque each month to ensure that they will be financially secure when they reach retirement. A significant proportion of employees (41%) also expect to retire later with at least a quarter of the employees not being confident of having enough financial resources in retirement.

Moreover, only half (48%) have confidence that their organisation’s retirement benefits would meet their needs. Hence it is no surprise that more employees would prefer to receive a larger base pay increase than other rewards like career advancement, flexible/paid time-off, or a larger bonus opportunity.

Nair added, “Right now, employees are more likely to prioritise security over career advancement and are also willing to make a bigger contribution towards their retirement funds. The challenge for leaders and managers is to involve and empower their employees more, reduce their anxiety, prevent burnout and attrition while continuing to stay the course for growth and financial success."