In booming industries such as the IT sector, there are actually comparatively high fluctuation rates in India. However, one should not conclude from this that there is no loyalty from employees towards the company in India.
Traditionally, the opposite is the case in India. Almost all Indian companies are family businesses - even the large corporations. It is in keeping with Indian culture to create the closest possible relationship between management and employees. This can be seen, among other things, in the fact that in India the interests of family members are consciously included in human resources policy. The idea, which is sometimes widespread in the West, that Indian companies exploit their employees is not generally valid.
If you look into the reasons for a termination in detail, you quickly come to the conclusion that it was not minor differences in wages that led to the termination, but rather the essential content of the salary package or the management behavior of the business family. (see also specialist article “Why breaks with Indian management happen so often”)
Staff retention through perspectives
Many medium-sized companies in Germany follow the principle of tying employees and managers as closely as possible to the company and thus ensuring that they stay there for a long time. In principle, this also applies to India, although there are limits here.
Over the last 30 years, the labor market in India has changed significantly. On the one hand, the performance principle has become increasingly established. In India, it is comparatively easy to increase performance and motivate employees through well-considered incentives. At the same time, it is also clear that such increases cannot be “infinite”. Such concepts for improving performance must always be linked to perspectives. If there are no long-term prospects in the company or new challenges, a company runs the risk of losing potential candidates for expanded leadership roles.
One can say that in India, after a period of five years with the same employer, the critical point comes when managers very often reorient themselves professionally. Good perspective planning with realistic prospects of further promotion or assignment outside India could persuade an Indian manager to stay with the company for a longer period of time. However, it may also be that a manager enjoys completely new challenges outside of the company that the current company simply cannot provide. In such cases, an amicable and amicable separation may well be the best way, rather than holding on to this employee at all costs.
