New Delhi: In the 19th edition of its Annual Salary Increase Survey in India, global talent, retirement and health solutions provider Aon Hewitt has projected a 10.6 percent salary increase for India Inc. in the current year.
The study refects a positive yet cautious sentiment in India Inc. towards salary increases. It was based on data from more than 580 companies.
Sectors such as Life Sciences, Engineering Services, Chemicals and Mediaare are projecting a higher increase than the market average, said Anandorup Ghose, Rewards Consulting Practice Leader at Aon Hewitt India.
“On the back of improving business confidence, a stable government and moderating inflation there is a significant improvement in business confidence across companies, however this confidences is not reflecting in salaries. The projected salary increase number shows a subtle improvement over salary increases in the last 3 years. Companies across industries are continuing to take a cautious stance and are not going for aggressive pay increases,” he said.
The overall positive sentiment in the economy has impacted the real estate and infrastructure sector significantly. The sector has moved up many places to lead the salary increase pack this year. Services industries like Retail, Financial Institutions, and Hospitality represent the lower end of salary increase projections.
The survey highlighted that almost 70 per cent of the respondents believe that there will be improvement in the business outlook. About half of all companies feel that positive business sentiment and increasing pay budgets in their competitive market are driving factors in their decision to increase salary projections from earlier years.
Companies have also become more severe in their ratings and the number of top performers has fallen by 30 per cent. This proves that companies will make their talent differentiations sharper and make budget allocations accordingly.
The expected move in job market will has also impacted attrition. The study showed that although overall attrition rate at 18.1 per cent is similar to last year's, key talent movement has shot up by 31 per cent.
