9.3% salary hike forecast in 2022
Higher salaries in India are making a comeback with 9.3 per cent hike being expected in 2022, from 8 per cent in 2021, and with companies planning to give employees larger raises as they face mounting challenges of attracting and retaining employees, according to a report.
Mumbai: Higher salaries in India are making a comeback with 9.3 per cent hike being expected in 2022, from 8 per cent in 2021, and with companies planning to give employees larger raises as they face mounting challenges of attracting and retaining employees, according to a report.
Salaries are projected to see a median salary increase of 9.3 percent next year compared to the actual median salary increase of eight percent in 2021, according to the Salary Budget Planning Report by global advisory, broking and solutions company Willis Towers Watson. India's projected salary increase is the highest in Asia-Pacific for the next year as optimism returns over improved business outlook in the next 12 months, the report added.
The Salary Budget Planning Report is a bi-annual survey conducted online between May and June 2021, with 1,405 companies across sections of industries from 13 markets in Asia-Pacific, including 435 companies in India. The report further showed that a majority (52.2 per cent) of companies in India have projected a positive business revenue outlook for the next 12 months, up from 37 per cent in the fourth quarter of 2020, which point towards a much-anticipated economic recovery.
This translates into increased hiring across businesses with 30 per cent of companies planning to hire in the next 12 months, the report said adding that this is almost three times more than 2020. The report also showed that a large part of hiring across sectors is likely to happen within critical functions such as engineering (57.5 per cent), information technology (53.4 per cent), technically skilled trades (34.2 per cent), sales (37 per cent) and finance (11.6 per cent), and these jobs will command a high salary.
In addition, attrition rates in India, both voluntary and involuntary, have been lower compared to other countries in the region, the report stated. The voluntary attrition rate was 8.9 per cent and involuntary attrition rate was 3.3 per cent, it added. "Increased business optimism is clearly translating into higher salary budgets and increased hiring activity. The pandemic was a watershed moment in the way organisations plan their people spend," Willis Towers Watson Consulting Leader India, Talent and Rewards, Rajul Mathur said.