The Aryavarth Express
Agency (New Delhi): The cost of living in a city does not influence compensation packages for talent, according to a survey conducted by KPMG, which included responses from human resources leaders and talent acquisition heads across 40 companies in 10 sectors. The survey, conducted in February and March, found that 95% of HR leaders indicated that differences in cost of living across Indian cities do not affect compensation decisions.
Historically, a city compensatory allowance was offered to offset the higher cost of living in metros or tier-I cities. However, the survey noted that very few employers provide this allowance now, and compensation ranges are generally consistent for similar roles across the country. Employees typically consider factors such as residential rent, property indices, local purchasing power, and overall costs of essentials like goods, utilities, and transportation when evaluating the cost of living.
The survey highlighted Pune as one of the safest cities, with Chennai and Navi Mumbai also excelling in safety, making these cities attractive to individuals seeking secure environments. Beyond safety, key factors that influence the quality of living include connectivity, commute time, healthcare, and air quality.
Navi Mumbai, Hyderabad, and Chennai were identified as leading cities with competitive commercial leasing prices. Additionally, companies tapping into talent pools in satellite cities like Gurugram, Navi Mumbai, and Noida reported high satisfaction and lower attrition rates. The survey indicated that tactical and transformational work predominantly takes place in tier-I and satellite cities, while tier-II cities often handle transactional roles.