Need to Address India's Workplace Culture

Need to Address India’s Workplace Culture

In July, a young chartered accountant reportedly died from work-related stress. This incident highlights the ongoing issues within India's corporate environment, where a toxic work culture is prevalent.

Table of Contents

Context

In July, a young chartered accountant reportedly died from work-related stress.
This incident highlights the ongoing issues within India’s corporate environment, where a toxic work culture is prevalent.

Prevalence Of Toxic Work Culture

The culture within many Indian corporations is characterised by long hours and a lack of respect for employee well-being.
Employees often find themselves working under extreme pressure without adequate support or recognition.
Companies frequently employ fewer staff than necessary, pushing existing employees to work harder.
Terms like “organisational stretch” and “variable pay” are used to mask the harsh realities of excessive workloads and inequitable compensation structures.
The performance evaluation systems benefit top management disproportionately from variable pay while lower-level employees face insecurity and unfair treatment.
Terms like “stress management workshops” fail to address the root causes of stress and burnout.

Public Sector Comparison

Public sector firms often have a better work culture, providing job security and more equitable pay structures.
Unions in the public sector act as a check against arbitrary management practices, which is less common in private enterprises.

Comparison to Global Work Cultures

The U.S. work culture is known for long hours and high pressure, while European standards prioritise work-life balance, exemplified by France’s 35-hour work week and an average of 40 hours across Europe.
The stark contrast in per capita income—$85,000 in the U.S. compared to $2,700 in India—highlights differing standards of living and expectations from employees, making the importation of American work culture to India unrealistic.

Recommendations for Improvement

Corporations are expected to respond with surface-level changes, such as reaffirming “core values” and implementing new codes of conduct.
The board of directors should take an active role in assessing and improving workplace culture.
To combat the toxic corporate culture, some level of regulation may be necessary to hold boards accountable and ensure they engage meaningfully with lower-level employees.