National, 23, April: In an era where talent retention, workplace transformation and financial resilience are at the forefront of boardroom discussions, corporate culture has emerged as a strategic differentiator for organisations navigating a volatile business environment. Recognising this trend, Deloitte India launched the India Culture Sensing Report 2024–25, a first-of-its-kind study that analyses the culture of organisations across five critical pillars. The study highlights the power of integrating cultural priorities with business goals to cultivate sustained organisational value and resilience. The report also uncovers a compelling link between workplace culture and key financial metrics, indicating that companies that improve culture scores over time will likely observe a relatively better impact on financial elements such as Total Shareholder Return, Net Profit Margin, Free Cash Flow and Return on Equity.
"Culture is no longer a ‘soft’ aspect of business—it is a measurable, strategic driver of financial success. Organisations prioritising cultural transformation see
stronger financial performance, improved employee engagement and long-term resilience. Our findings indicate that companies with improved culture over time are 1.6x times more likely to experience higher net profit margins and
1.7x times more likely to experience improved free cash flow. Yet, key challenges such as industry-wide gaps in decision-making speed, employee
recognition and governance must be addressed. Businesses that proactively
bridge these gaps will see sustained growth, enhanced shareholder returns and a competitive edge in today’s evolving market."
- Nitin Razdan, Partner, Deloitte India
The report evaluates workplace culture on five fundamental pillars and the average scores attributed to each. Growth and learning (87) emerged as the strongest pillar, highlighting the growing emphasis on continuous skill development opportunities. Empowerment and inclusion (84) ranked high, reflecting organisations' increasing focus on autonomy, diversity and equitable work environments. Ethics and sustainability (78) are gaining momentum, with companies strengthening governance and transparent business practices. However, agility and innovation (74) remain challenging, as bureaucratic roadblocks hinder adaptability and decision-making speed. Performance and results (73) recorded the lowest score, underscoring persistent concerns around compensation structures, favouritism and leadership gaps, which impact overall employee satisfaction and productivity.
The report evaluates findings across six significant industries where Financial Services (80) and Government & Public Services (80) lead in overall culture scores, driven by strong learning and inclusion initiatives. Life Sciences & Healthcare (79) demonstrates a highly ethical work culture but faces challenges in employee recognition. Consumer (79) companies benefit from a collaborative culture but struggle with bureaucracy and poor work–life balance. In contrast, Energy, Resources & Industrials (77) lags due to inadequate management and unstructured processes, while Technology, Media & Communication (76) fosters employee empowerment but is hindered by slow decision-making and compensation concerns.
The report outlines cultural differences specific to various industries, showcasing effective practices and obstacles encountered in different sectors. It provides a detailed perspective on key themes derived from organisations with both high and low culture scores, drawing insightful parallels that deepen understanding of the cultural dynamics separating industry leaders from the ones who are lagging.
As businesses prepare for the future of work, Deloitte’s findings highlight the critical need for leaders to integrate culture into their strategic planning. Organisations must eliminate unconscious biases, simplify complex processes, revamp employee rewards and foster microcultures of autonomy and trust to drive sustainable growth. By aligning cultural priorities with financial goals, companies can also enhance employee engagement and unlock long-term business value. Per the report, looking ahead, industry leaders must adopt a data-driven approach to culture transformation, integrate AI-driven insights for continuous improvement and foster cross-industry collaborations to set new benchmarks for workplace excellence and long-term value creation.
About the study
Leveraging AI-driven algorithms and sentiment modelling, India’s Culture Sensing Report 2024–25 examines over 170,000 employee reviews from 75 companies within the Nifty Smallcap 250 Index to extract actionable insights on workplace culture. It comprehensively assesses cultural dynamics across six key industries— Government & Public Services, Financial Services, Consumer, Energy, Resources & Industrials, Life Sciences & Healthcare and Technology, Media & Communication—highlighting major trends shaping organisational success.
About Deloitte
This press release has been issued by Deloitte Touche Tohmatsu India LLP
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Media contact
Pallavi Das
Deloitte Shared Services India LLP
Email: paldas@deloitte.com