Job Security - Number One priority of an Indian Employee

Job security is the first priority of an Indian employee. A very recent Towers Watson 2012 Global Workforce Study covering a majority of below-30 year olds revealed that job security ranks Number 1 when it comes to drivers of attraction, amongst Indian employees. This, in fact, is a lot more compared to other developing countries in the region. Job security amongst priorities stood at No. 2 in Hong Kong & Singapore, at No. 5 in China & Japan, while in Indonesia job security was not even in the consideration set. The global slowdown, listless economy and uncertain job markets seem to have taken their toll on the mindsets of young India Inc., which is increasingly valuing security above all else in prospective jobs. Other than job security, the top 5 parameters attracting India employees include career advancement opportunities, base pay/salary, learning and development opportunities and reputation of the organization as a place to work.


Why India?

Why is job-security such a major concern in India? Actually other powerful Asian economies are also not far-behind.

1. Slowdown and Looming Layoffs:

As many as four CFOS have put-in their papers and two have shifted to other roles abruptly in ther past few months, according to ET. CFOs leaving suddenly is bad news for investors and a very clear sign of slowdown. The slowdown in Indian economy has started to claim its casualties. One among the first have been the e-commerce companies who have issued marching orders to many of their employees. Among the companies sacking staff are Flipkart and Jabong, which are amongst the biggest in the business. Flipkart alone has cut about 10% of its workforce. Poor performance, cost-cutting pressures, M&As, heavy expenditure in acquiring new customers have been cited as main reasons for the layoffs.

Mutual Fund Industry in India is also hit badly. Some Fund Managers have taken as much as 30% cut in their fixed salary, others have only marginally increased and many have not received their joining bonus. Reliable business sources add that there is a tendency amongst Fund Managers to seek safety, over salaries and bonuses.

Most other industry sectors will follow the suit.

2. Growing economic uncertainty & Reshoring of jobs:

Economic uncertainties have shrunk jobs and in country like India the swarming graduates passing-out every year have not found their numbers matched-up by the number of openings.

Added to this, high unemployment rates and a consequent decline in wages in the US, combined with political pressure to create jobs locally, is pushing a growing number of American companies to reshore jobs (bring back jobs that were once offshored). The Harry Moser, founder of Reshoring Initiative, estimates on his website that 50,000 manufacturing jobs have been reshored to the US since January 2010. A Boston Consulting Group report last year estimated that a manufacturing revival in the US could bring in 5 million jobs by 2020.

3. The burgeoning Generation Y:

A British survey (UK's Office of National Statistics (ONS) has revealed that most Gen Y of the world reside in India. ONS compared UK's 90 and over population with India and China and found that while nearly 800 per 1 lakh population here were above 90 and above, the number stood at just 75 for India and 150 for China. India according to the list prepared by ONS is the youngest nation. A BPW Foundation’s Gen Y study published in April 2011 also noted that by 2025, Generation Y will make up roughly 75% of the world’s workforce. With this many millennial making up the majority of the workforce by 2025 — only 13 years away — employers can’t afford not to take notice.

What do these different findings, surveys done by organizations of repute, about India mean?

Put two and two together and the picture emerges that of an anxious Generation Y entering and about to enter the workforce in huge numbers. Their anxiety stems from the uncertainties amidst which they have grown-up and that threaten their stability. In fact Generation Y suffers from a strange paradox. They have been brought-up by their parents who have made them to believe that they can do possibly anything and achieve everything that’s worthy on this planet. However as the have approached their redeemable moment, the opportunities have simply vaporized! The result has been an anxiety about stability and sustenance. This has effectively replaced career advancement opportunities (the earlier number one priority) with job-security among Indian employees.