Organisations in India may give above average salaryhike
NEW DELHI: Notwithstanding the Covid-19 second wave hitting the nation hard, organisations in India have displayed resilience, and the salary increment is being projected to grow from an average of 8.8% this year to an estimated average of 9.4% in 2022, according to a survey.
According to the Aon’s 26th Annual Salary Increase Survey released on Tuesday, most businesses have an optimistic view going into 2022, with 98.9% of companies intend to give salary increases in 2022, as compared to 97.5% companies in 2021.
There is positive sentiment across most sectors, and India Inc is firmly on the path to recovery, with most firms projecting salary hikes back to FY 2019 levels by FY 2022.
“This is a strong indication of financial health and buoyancy in the economy. There is a clear uptick, from 6.1 salary increase in 2020, we have gone up to 8.8% actual in 2021 and the projected salary increase for 2022 is 9.4%, which is at par with the pandemic number that we had seen in 2018 and 2019,” said Roopank Chaudhary, a partner in Aon’s human capital business.
The survey further noted that the pandemic has accelerated the digital journey for organisations and this has led to an unprecedented war for digital talent in the short term and is driving up salary increase budgets and attrition numbers across sectors. Businesses will have to redefine their talent strategies to keep pace with the war for talent, Chaudhary said.
Chaudhary further noted that most Indian organisations, across traditional and non-traditional sectors, are making investments in digital capabilities to sustain the growth momentum and disrupt their industries.
“Employees with digital and technological skills are the most successful in 2021, as we see the highest salary increase for employees with these skills across sectors. We expect that this trend will intensify over time, as organisations have an increased need for this talent to transform their business models and build resilient workforces,” Chaudhary said.
According to Nitin Sethi, partner and CEO of Aon’s performance and rewards businesses in India, while 2021 is a year where certain sectors remain under stress due to the pandemic, most businesses have an optimistic view going into 2022 and are projecting higher salary increases.
“We see positive sentiment across most sectors, high investor confidence with sustained foreign direct investment flowing into the country and growing consumer demand across most segments,” Sethi said.