Indian Companies Lead in Agility and AI Adoption, But Must Address Pay Equity: Report
Synopsis
A recent report reveals that Indian firms are leading globally in organizational agility and artificial intelligence adoption. However, to retain talent, they must address concerns over fair compensation. The findings highlight the need for a balanced approach in this rapidly evolving corporate landscape.
Key Takeaways
Indian firms are leading in organizational agility and AI adoption .
54% of C-suite leaders expect AI to drive business transformation.
80% plan to simplify reporting structures.
Compensation concerns are driving talent away.
HR leaders are prioritizing pay equity initiatives.
New Delhi, April 7 (NationPress) Indian enterprises are significantly outpacing their global counterparts in terms of organizational agility, restructuring strategies, and AI integration. However, it is crucial for leaders to prioritize equitable compensation to effectively retain their talent, according to a recent report released on Tuesday.
The study conducted by Mercer indicates that 54% of C-suite executives in India anticipate that AI will play a pivotal role in business transformation and innovation over the next two years, which is notably higher than the global average of 42%. Furthermore, 66% of HR leaders are planning to redesign work processes to maximize human-machine collaboration.
Based on insights from nearly 12,000 global participants, including 650 from India, the report revealed that 80% of India's C-suite aims to streamline reporting structures, well above the global average of 59%. Additionally, 76% intend to reduce hierarchical layers, compared to just 44% worldwide.
Moreover, 64% of Indian respondents expect to establish self-organizing teams, unlike 49% globally. India's overall agility scores are notably high, with 48% rating their agility as high, in contrast to a mere 29% worldwide, particularly excelling in business agility at 52% and product agility at 42%.
Interestingly, Gen Z makes up 43% of India's workforce, surpassing the global figure of 33%.
On the other hand, 54% of employees cited compensation as the leading factor influencing their decision to leave their jobs, despite the fact that Indian workers place immense value on their organization's purpose.
Furthermore, 74% of respondents expressed that being part of an organization with a meaningful purpose significantly contributes to their success, compared to 42% globally.
About 44% of employees felt their pay was unjust. The report highlights that the push for fair and competitive pay is evident, as 37% desire assurance of equal pay for similar roles among their peers.
To tackle this issue, HR leaders in India are much more inclined than their global counterparts to address pay equity gaps between new hires and long-standing employees by 2026, as noted in the report.
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Point of View
This report underscores the remarkable progress Indian companies are making in agility and AI adoption. However, it also highlights a critical need for addressing pay equity to maintain a motivated workforce, indicating that talent retention strategies must evolve alongside technological advancements.
NationPress
16 Jul 2026
Frequently Asked Questions
What percentage of Indian C-suite leaders expect AI to drive innovation?
54% of C-suite leaders in India anticipate that AI will be pivotal in transforming their businesses and driving innovation within the next two years.
How do Indian companies rate their organizational agility compared to global counterparts?
48% of Indian companies rate their organizational agility as high, significantly above the global average of 29%.
What are the main reasons employees plan to leave their jobs in India?
54% of employees cited compensation as the top reason for their intention to leave the organization.
What is the significance of purpose in the workplace for Indian employees?
74% of respondents indicated that working for an organization with a purpose they are proud of helps them thrive, compared to 42% globally.
What steps are HR leaders in India planning to take regarding pay equity?
HR leaders in India are more likely than their global peers to address pay equity gaps between recent hires and long-tenured employees by 2026.
