7 in 10 Indian Gen Z Plan to Switch Jobs — Here’s How Employers Can Retain Them

As tech-savvy digital natives, Gen Z bring in fresh perspectives that keep organizations competitive. However, many employers in India are facing a retention problem. Our latest research shows that 69% of Indian Gen Z employees plan to switch jobs in the next six months.

Our survey included 2,508 respondents in seven cities, across ten different sectors. We found that the problem is not isolated to one particular hub. It is widespread and set only to grow if businesses aren’t quick to implement employee retention strategies for Gen Z talent.

Thanks to inflation and global hiring, Gen Z have both high workplace expectations and more opportunities than ever before. For employers to appeal to the next generation of Indian talent, new tactics are needed.

Here, we’ll look at some Gen Z workplace trends in India for 2025, to understand where the job switching risks are and what businesses can do to retain younger talent.

Gen Z salary satisfaction in India: A wake-up call for businesses

So, what’s behind the problem? The blame can largely be placed on salaries, with 41% of Gen Z reporting being unhappy with pay. This may be surprising, as India currently has the fastest salary growth globally (at 11%). Our research shows that this growth isn’t enough to ensure salary satisfaction.

Respondents reported feeling dissatisfied due to:

• No inflation-adjusted hikes (21%)
• Below-market salaries (19%)
• Poor salary growth (13%)
• Cost of living pressures, especially in metros like Delhi/NCR (55%) and Mumbai (48%)

Although headline salary growth looks impressive, Gen Z isn’t feeling it in their bank accounts. Rising living costs, pay that lags behind market benchmarks, and hikes that fail to keep pace with inflation are eroding the value of these increases. The disconnect between reported growth and Gen Z’s real-world purchasing power are driving dissatisfaction.

The generational perks gap

Another impact on employee satisfaction is perceived equity among colleagues, particularly intergenerational equity. 61% of Gen Z respondents feel that older colleagues get better promotions, training, and flexibility. For a generation that is hyper-aware of the importance of equality, this perceived age discrimination has an impact on both engagement and retention.

In banking, for example, structures are deeply hierarchical, with promotions tied to years of service, exams, and rigid internal protocols. This creates a workplace culture where Gen Z feel undervalued and have fewer opportunities for career progression.

Perks cannot be extended to employees based on solely on tenure if businesses want to retain their Gen Z employees. Without creating structured career growth plans and leadership opportunities, employers will struggle to create an environment that discourages job-hopping.

The global pull factor: Remote jobs and higher pay

Flexible work arrangements are highly attractive for Gen Z employees, with 51% saying they would accept a remote global role for higher pay. The global increase of work from home, the gradual deconstruction of presenteeism, and the appeal of remote work culture have led the new generation of workers to see flexibility as the norm, not a bonus.

Whether through hybrid office schedules or adaptable work hours, flexibility not only reduces attrition but also helps employers stand out in a crowded talent market. Yet, only about 23% of job postings in India currently offer remote or hybrid options, far below Gen Z’s appetite for autonomy.

This gap leaves young professionals looking beyond domestic employers, increasingly drawn to global companies hiring in India — such as Microsoft, Google, Accenture, Canva, and Deloitte — where flexibility is built into the culture.

Sector breakdown: Where Gen Z restlessness runs high

While disengagement is high across all industries, some sectors stand out for their particularly high levels of dissatisfaction, job-switch intent, and openness to remote roles.

What we’re seeing here is a mismatch in expectations. Gen Z prioritises autonomy, flexibility, and rapid skill growth, while many Indian industries remain steeped in hierarchical, tenure-based systems. If traditional institutions aren’t willing or able to meet the needs of Gen Z talent, many global remote-first organisations can. And Gen Z aren’t afraid to jump ship to boost their career or receive better working conditions.

What can employers do to keep Gen Z talent?

To avoid facing a talent shortage and stay competitive, Indian businesses need new tactics to attract Gen Z professionals.

• Rethink compensation strategies: Meet Gen Z expectations by matching inflation and meeting market benchmarks.

With Deel: Deel’s Employer of Record in India helps guarantee compliance without the headache, by giving you market benchmarks and flagging salaries that don’t comply with local labour laws.

• Offer hybrid/remote work: This is critical for retaining Gen Z, but also boosts employer appeal for all generations (our research shows that 73% overall prefer hybrid). Flexibility can be extended to working hours if working from home doesn’t apply.

• Invest in training and leadership opportunities for younger staff: Boost equity across generations by implementing mentorship schemes and skill training. Create leadership programmes that aim to level up younger professionals. By building formal systems aimed at providing growth opportunities regardless of age or experience, you’ll boost Gen Z engagement and reinforce employee trust.

• Create feedback cycles: Gen Z in particular highly value feeling heard and having the opportunity to give feedback. Create channels for them to discuss mental health support, job security, skill development, and anything else that may be causing Gen Z churn.

By building equity across generations, offering flexibility, and focusing on Gen Z career growth, businesses can attract and retain the next generation of Indian professionals.

Seamless flexibility with Deel

Losing top Gen Z talent to better-paying, more flexible global employers is a serious risk for traditional, hierarchical businesses. But with the right mix of pay, flexibility, and growth, employers can turn this risk into loyalty.

That’s where Deel comes in. With Deel’s Employer of Record solution, you can benchmark salaries against global standards, stay compliant with Indian labor laws, and offer competitive, inflation-aware pay. Our global payroll solution then makes it easy to pay your workforce across countries in one streamlined system, ensuring accuracy, timeliness, and a consistent employee experience no matter where your team is based.

Book your 30 minute Deel demo today.