7 in 10 Indian Gen Z Workers Plan Job Switch Despite Salary Growth
India’s youngest workforce presents a striking paradox. Despite receiving the fastest salary growth globally, Gen Z employees remain deeply dissatisfied. Moreover, this disconnect reveals critical gaps in how companies engage their emerging talent.
Recent research from Deel uncovers alarming trends across India’s white-collar Gen Z workforce. Specifically, 41% express unhappiness with their current compensation. Furthermore, this dissatisfaction peaks in metro cities like Delhi/NCR and Mumbai. Additionally, these workers recorded an impressive 11% salary growth rate worldwide.
The Financial Strain Behind Growing Dissatisfaction
The research identifies several key factors driving Gen Z’s compensation concerns. First, 21% cite lack of inflation-adjusted salary increases. Second, 19% believe their pay falls below market standards. Third, 14% struggle to cover expenses beyond basic needs. Finally, 13% express frustration with poor salary growth patterns.
These findings emerge from extensive research conducted between April and May 2025. Consequently, the study surveyed 2,508 full-time professionals across seven Indian cities. Additionally, participants represented ten different industry sectors. All respondents fell within the 20-28 age range with 0-3 years experience.
Generational Divide Creates Workplace Tension
Beyond salary concerns, a significant perception gap emerges between generations. Notably, 61% of Gen Z workers believe older colleagues receive preferential treatment. Furthermore, they perceive inequitable access to career development opportunities. Additionally, workplace benefits and flexibility options favor senior employees.
This generational divide creates substantial workplace friction. Consequently, younger employees feel overlooked despite their adaptability and skills. Moreover, many interpret this gap as insufficient investment in their growth. Subsequently, these perceptions directly impact engagement and retention rates.
Global Opportunities Attract Dissatisfied Talent
The dissatisfaction translates into concrete action plans among Gen Z workers. Remarkably, 69% actively plan to switch jobs within six months. Additionally, 51% would accept fully remote positions with global companies. Furthermore, better salary offers significantly influence their decision-making process.
This trend proves particularly pronounced in technology-focused cities. For instance, Bangalore leads with 74% expressing job-switch intentions. Similarly, Mumbai follows closely at 67% readiness to change roles. Meanwhile, Chennai shows 65% of workers considering new opportunities.
“Companies risk losing their top Gen Z talent to higher-paying global roles,” explains Sumit Sabharwal, Deel’s Country Leader for India. “While compensation remains a major concern, organizations must also offer flexibility.” Additionally, he emphasizes that Employer of Record solutions enable remote hiring across borders.
Understanding the Real Impact of Rising Costs
The disconnect between salary growth and satisfaction reflects broader economic pressures. Although Gen Z workers receive substantial pay increases, inflation erodes their purchasing power. Consequently, real-term salaries actually decreased by 2.5% year-over-year despite nominal growth.
Housing costs particularly strain young professionals’ budgets across urban areas. Furthermore, rental prices expect to increase 7-10% annually. Meanwhile, consumer inflation forecasts suggest 4.3-4.4% growth rates. Therefore, housing costs significantly outpace general inflation trends.
These economic pressures create financial instability despite apparent salary improvements. Subsequently, young professionals experience reduced living standards. Moreover, their career expectations clash with economic realities in major cities.
Metro Cities Drive Dissatisfaction Trends
Geographic patterns reveal significant variations in Gen Z satisfaction levels. Delhi/NCR shows the highest dissatisfaction at 55% of surveyed workers. Similarly, Mumbai follows with 48% expressing compensation concerns. Meanwhile, Chennai records 38% dissatisfaction among young professionals.
These metro-specific trends correlate directly with cost-of-living pressures. Additionally, higher living expenses in major cities amplify salary inadequacy perceptions. Furthermore, these locations offer greater exposure to global work opportunities. Consequently, workers compare local compensation with international standards more frequently.
Industry Patterns Shape Career Decisions
Sector-specific analysis reveals dramatic variations in Gen Z workplace satisfaction. Manufacturing leads dissatisfaction rates at 53% of surveyed workers. Educational services follows closely with 50% expressing compensation concerns. Additionally, healthcare shows 48% dissatisfaction among young professionals.
Conversely, job-switching intentions vary significantly across different industries. Information technology dominates with 85% planning career moves. Professional services follows with 77% considering new opportunities. Meanwhile, BFSI/Fintech shows 73% readiness to change positions.
Remote work preferences also demonstrate clear industry patterns. IT professionals lead global role interest at 84% of workers. Professional services shows 70% openness to international opportunities. Furthermore, construction and real estate demonstrate 58% interest in remote positions.
Gender Dynamics Influence Career Preferences
The research uncovers notable gender differences in career planning approaches. Women show 61% preference for remote global work opportunities. Additionally, non-binary respondents demonstrate 60% interest in international positions. Conversely, men express 41% openness to overseas remote roles.
These gender patterns suggest different priorities and career advancement strategies. Furthermore, women may perceive remote work as offering better work-life balance. Additionally, global opportunities might provide more equitable advancement prospects. Consequently, these preferences influence talent retention strategies across organizations.
Building Bridges Across Generational Divides
Organizations face complex challenges balancing multi-generational workforce needs. Therefore, successful companies must address Gen Z expectations without alienating older employees. Additionally, comprehensive compensation reviews provide effective starting points for improvement.
Deel’s global compensation research reveals salary growth stagnation across demographics. Consequently, inflation continues outpacing India’s 3% annual salary increases. Moreover, flexible work arrangements satisfy multiple age groups simultaneously.
LinkedIn survey data supports hybrid working as a universal preference. Specifically, 73% of over 57,000 professionals favor flexible work options. Therefore, companies can implement policies benefiting all generations equally.
Strategic Solutions for Talent Retention
Forward-thinking organizations must adopt comprehensive approaches to retain Gen Z talent. First, regular compensation benchmarking ensures competitive salary structures. Second, inflation-adjusted increases protect employees’ purchasing power. Third, transparent career progression paths address growth concerns.
Additionally, flexible work arrangements meet evolving employee expectations. Furthermore, mentorship programs bridge generational knowledge gaps effectively. Moreover, global exposure opportunities satisfy Gen Z’s international career aspirations.
“Understanding how different generations view work is essential,” Sabharwal emphasizes. “Bridging gaps that impact various age groups allows businesses to support younger employees.” Furthermore, he notes that older professionals might follow similar patterns if expectations remain unaddressed.
The Future of India’s Workforce Landscape
This research illuminates critical shifts in India’s employment landscape. Gen Z workers drive significant changes in workplace expectations and career patterns. Additionally, their global perspective challenges traditional employment models. Furthermore, their technology fluency enables seamless remote work adoption.
Organizations must evolve rapidly to retain this emerging talent pool. Consequently, companies failing to adapt risk losing competitive advantages. Moreover, the talent shortage could intensify as global opportunities expand. Therefore, proactive workforce strategies become essential for business success.
The Gen Z employment paradox demands immediate attention from business leaders. While salary growth continues, deeper satisfaction factors require comprehensive solutions. Organizations embracing this challenge will secure tomorrow’s workforce today.
