– Demand-supply gap: India has a population of over 130 crores, out of which more than 50% are below the age of 25 years. Despite that, as per a McKinsey study, UK has more qualified engineers ready to work than those in India. There is a huge supply of people not fit to be employed. To absorb the excess supply, the Indian economy will have to grow and create low-end and high-end jobs. This will help absorb less educated degree holders produced by our education system. With experience some of the people will graduate to be high performing talent. Problem is that the high performing talent also does not get paid well, by global standards. Our economy will have to continuously grow at 7 to 9% for the salaries to compare well with the developed worlds.

– Education system: The greatest flaw in our education system is that it is not focused on creating capabilities. Institutions are not building talented individuals with skills. They are only focused on individuals who will work for the sake of money. Hence, there are fewer high performers in organizations, thereby creating mediocre organizations, who in turn cannot afford to pay well and attract limited talent people.

– Profit Margins of employers: In a highly competitive market like India, the price points and margins that employers can command are low. Both the affordability and willingness to pay is less.

– Inefficiencies of the system: The productivity of business and people is affected due to lack of infrastructure. Many employees spend a lot of time traveling and commuting, which has an adverse impact on their efficiency. The time that could have been used for work is wasted in commuting.

– Unhealthy work culture: In India, the work environment is generally toxic. The employees are generally disengaged and frustrated, and hence, deliver less. Even employees who are engaged and happy have poor work ethic. Typically, a lot of people in India come in late and leave late. During the day also they have too many breaks reducing the overall productivity. On an average, an employee in the US is 3 times more productive than the one in India.

With all these factors working together, availability of highly productive talent is a huge challenge. the salaries of individuals are not rising.

How can these problems be addressed?

1.) Government initiatives: The supply gap can be addressed by the government through good schools and colleges. With high growth in GDP, demand for good people and paying capacity of businesses will increase.
2.) Quality of work: Even if the education system is inefficient, students are responsible for building their future. If they continue to follow the herd mentality, they become a part of the over- supply. Hence, find and focus on unique talent. Once you become the best in your field, command premium price. Follow your passion, find your niche, create excellence and compensation will follow.
3.) Improving margins: Once consumption goes up and the economy grows, margins will increase. Until then, businesses can innovate and come up with ways to improve the margins and provide better salaries. 4.) Relocation: Large corporations and businesses can locate themselves in towns and cities with good infrastructure, easy commute, and availability of talent.
5.) Overcoming inefficiency: The quantity of work done is as important as the quality. Work culture is made by the people, and they have the power to change it. Through engagement initiatives, companies can focus on the well-being of their employees. Instead of being bothered by how others are performing, individuals can focus on their delivery of work and maintain productivity. With sincere efforts, the problem of work culture will no longer be a bottleneck to careers.

Through innovation, skills, and opportunities, we can together reshape the job market and pave the way for rewarding careers. The journey is just beginning, and together, we can build a brighter, more prosperous tomorrow.

What are your thoughts on overcoming low salaries in India’s job market? Share your insights and experiences in the comments below!