Employers shift hiring to smaller cities as cost and loyalty gains outweigh constraints
A Genius HRTech survey of 1,729 employers found 69% increased tier II and III hiring by over 30% in the past two years. Retail and e-commerce employers are among sectors tapping smaller-city talent, though 60% cite infrastructure and connectivity as a key constraint.
What happened
Genius HRTech Limited · Genius HRTech survey finds Indian employers, including retail and e-commerce, are expanding hiring in tier II and III cities for lower
Key facts
- 69% of organisations increased tier II and III hiring by more than 30% over the last two years
- 1,729 employers surveyed in August
- 55% expect most hiring to shift to tier II and III cities over the next three years
- 60% cite infrastructure and connectivity as the biggest constraint
- 39% cite cost efficiency as the primary benefit
What changed
Genius HRTech survey finds Indian employers, including retail and e-commerce, are expanding hiring in tier II and III cities for lower costs, loyalty and talent access, though infrastructure and connectivity remain major constraints.
Why this matters
Retail operators can widen frontline and support hiring in tier II and III cities to lower labor costs and improve retention, while investing in connectivity, training, and local management capability.
What to watch
- Tier II/III wage inflation and attrition relative to metro benchmarks.
- Broadband reliability, commercial real-estate availability and public transit improvements in target cities.
- Expansion of retail store, warehouse, dark-store and last-mile networks beyond metros.
- Share of managerial, analytics and technology roles—not only frontline roles—filled from smaller cities.
- State incentives for employment, skilling, IT parks and logistics investments.