Engaged Gen Z & Millennial Managers Boost Retention by 7%: GPTW Report

Mumbai, June 26, 2025:  India’s workplaces are undergoing a bold transformation driven by the rise of GenAI, sustainable business mandates, and a new generation of digital-native leaders. Amid this change, organizations across the country are discovering that cultures built on trust, inclusion, and purpose not only fuel innovation, but also unlock the full potential of their people. The list of India’s Best Companies To Work For 2025 and India’s Great Mid-size Workplaces 2025 were recently announced at Great Place To Work® India’s flagship event, celebrating excellence in workplace culture and leadership across the country. The research is based on responses from over 2,000 organizations and 5.7 million employees, reveals that the most admired companies today are those that are investing intentionally in next-generation leadership and equitable, high-trust work cultures.

This year’s list of India’s Best Companies To Work For and India’s Great Mid-Size Workplaces highlights what sets thriving companies apart: their ability to empower people across levels, especially younger managers stepping into leadership for the first time. These workplaces are not only attracting and retaining top talent but they’re also cultivating environments where employees feel supported, heard, and inspired to perform at their best.

Gen Z and Millennial managers are now a critical leadership demographic, and when they are fully engaged, the outcomes are clear. The study shows that when these young leaders feel as positively about their experience as their senior peers, retention increases by 7%. Yet, across the broader business landscape, many of these emerging leaders still report gaps in involvement and support. In fact, 22% of Millennial and Gen Z managers do not feel included in decision-making and say that honest mistakes are not treated as opportunities to learn, a signal that many organizations have yet to adapt their leadership cultures to match the expectations of a new generation.

At the Best Workplaces, however, the story is different. Young managers in these organizations report 9% higher positivity in areas such as recognition, innovation, and trust, the elements that directly influence long-term performance and career confidence. These environments foster a sense of ownership and inclusion early in the leadership journey, reinforcing that all voices matter and that trust is not limited by tenure or title.

Strong leadership cascades trust downward, and that trust, in turn, lifts the entire organization. The data reflects this powerfully. In high-trust cultures, employees are 9% more confident in their leadership team’s decisions, 7% more likely to feel empowered to innovate, and 8% less likely to experience burnout. These gains are not incidental, but they are the result of sustained cultural investments in transparency, collaboration, and people-first leadership.

The research also underscores that clarity, consistency, and communication remain foundational to business performance. In organizations where expectations are clear and feedback is ongoing, employees are significantly more likely to go the extra mile. Leaders who take accountability for bridging this clarity gap are not only building stronger teams but also enhancing organizational agility in an era where speed, experimentation, and learning define success.

At the same time, the study reveals a steady weakening of the psychological contract between employees and employers across industries. Employees today are more willing than ever to contribute meaningfully, but they expect mutuality. When recognition, advancement, or meaning at work are not visible, discretionary effort declines. The sense that “my efforts matter here” is no longer a given; it must be earned, consistently and intentionally. Best Workplaces are doing this by investing in systems that promote fairness, foster continuous learning, and align individual contributions with organizational purpose.

Despite the broader challenges, Great Place To Work® India finds that culture remains one of the strongest and most resilient competitive advantages. Organizations that intentionally prioritize people practices, equip their managers to lead with empathy, and foster psychological safety are not just surviving change, they are shaping it. These workplaces prove that culture is not a byproduct of business success; it is the engine behind it.

Balbir Singh, CEO, Great Place To Work®, India, said, “Congratulations to the winners of India’s Best Companies to Work For 2025, India’s Great Mid-Size Workplaces 2025, Legends 2025 and India’s Best Employers Among Nation-Builders 2025 who have demonstrated unparalleled commitment to creating outstanding workplaces. Every year, we ask ourselves a fundamental question: what makes a company truly great in the eyes of its people? This year, the answer was clear and deeply meaningful; greatness lies in what employees choose to give when they know they matter. It’s that extra spark, that deep commitment, and the willingness to go the extra mile not out of obligation, but out of belief. These winning organizations have set the benchmark for what it means to lead with purpose, trust, and humanity.”

As India charts its next chapter of economic and social growth, the quality of its workplace cultures will play a defining role. Organizations that embrace purpose-driven leadership, listen deeply to emerging voices, and make trust a strategic priority will be those that not only thrive, but lead. The 2025 Best Workplaces™ show us that investing in people is no longer a moral imperative alone—it is the strongest business strategy for a future that works for all.