India's professional services sector is facing a deepening retention challenge, with frontline managers and supervisors emerging as the most likely group to leave their organisations, according to a new report from Great Place To Work India.
The study, which analysed responses from more than 1.1 lakh employees across over 130 organisations, found that 86% of frontline managers and supervisors are actively looking for a new job, significantly higher than the 53% of individual contributors seeking new opportunities.
The findings point to growing pressure on a layer of employees often responsible for balancing business demands, client expectations and workforce management during a period of rapid workplace change.
Frontline managers under the greatest strain
While employee retention has become a concern across the industry, the report identifies frontline managers as a particularly vulnerable group.
According to Great Place To Work, these managers are increasingly functioning as "shock absorbers" within organisations, carrying the burden of project delivery, client demands and team management while simultaneously translating organisational changes into day-to-day execution.
The report noted that these employees are expected to manage multiple and often competing priorities without disrupting business operations, contributing to elevated levels of stress and job-search activity.
The data suggests retention risks are no longer limited to entry-level talent. Organisations may also face growing challenges in retaining critical managerial talent responsible for workforce stability and operational continuity.
Broader retention concerns emerge
The report found workforce mobility remains high across the sector.
Key findings include:
- Around one in two employees are actively looking for a new job
- Three in four job seekers intend to leave their current organisation within the next 12 months
- Only half of employees plan to stay with their existing employer
- Employee willingness to go beyond formally defined job responsibilities has continued to decline
According to Great Place To Work, improvements in basic workplace conditions have not translated into stronger employee commitment.
The report stated that employees may recognise incremental workplace improvements, but many have yet to experience the deeper cultural and systemic changes required to build long-term loyalty and discretionary effort.
Gen Z reshapes workforce expectations
The study also highlights the growing influence of Generation Z on workplace dynamics.
Gen Z employees now account for 34% of the workforce, up from 17% in 2023, effectively doubling their representation within two years.
According to the report, younger employees display limited tolerance for ambiguity around compensation, recognition and career progression. They are also more likely to leave organisations when expectations are not met.
Akshat Shah, Managing Director, Great Place To Work India, said professional services organisations need to rethink how they engage and retain talent.
He said leaders must redefine engagement and retention strategies to align with the increasingly personalised expectations of a diverse workforce.
The findings suggest traditional retention approaches may struggle to meet the expectations of a workforce that increasingly prioritises transparency, recognition and career growth.
AI adoption races ahead of employee preparedness
The report also points to a widening gap between technology adoption and workforce readiness.
While nearly six in 10 organisations are using artificial intelligence meaningfully in day-to-day operations, employee understanding of the technology remains limited.
Only two in 10 employees strongly agreed that they had been adequately briefed on the risks and benefits associated with AI tools.
The disconnect highlights a growing challenge for employers seeking to scale AI adoption while maintaining employee trust and confidence.
As AI becomes more deeply embedded in business operations, organisations may need to invest more heavily in communication, education and change management to ensure employees understand both the opportunities and risks associated with the technology.
Retention moves to the top of the leadership agenda
The report paints a picture of a sector undergoing significant workforce change.
A rapidly expanding Gen Z population, rising managerial burnout, declining discretionary effort and uneven AI preparedness are creating new challenges for employers. For many organisations, retaining talent may increasingly depend on addressing not only workplace fundamentals but also the broader cultural, career and leadership expectations shaping today's workforce.
As professional services firms compete for talent in a changing labour market, the ability to support frontline managers, improve transparency and strengthen employee trust could become a critical differentiator.