INSUBCONTINENT EXCLUSIVE:
India Inc will continue to record double-digit salary hikes, with pay expected to increase 10.3 per cent in 2023.
According to global
increase of 10.6 per cent in 2022, India is the only major economy where the projected increase continues to be in double digits,
notwithstanding concern about economic volatility.
Of the 1,400 companies surveyed across 40 industries, 46 per cent of organisations are
expected to hand out double-digit salary increases in 2023.
Last year, salaries saw a higher-than-normal increase at 10.6 per cent, as
and leader of the executive compensation and governance practice in India at Aon.
Experts see the numbers as an affirmative sign
manage rising costs and retain talent
Under the given circumstances, 10.3 per cent seems viable
While growing inflation and rise in lending interest rates could dampen sentiment of an average salaried employee, the silver lining is that
The survey pegged an ever-changing talent strategy and the ongoing gap between the supply and demand of talent as the prime causes for this
increase.
Involuntary attrition also increased by virtue of recent layoffs
Financial institutions and technology consulting and services saw the highest involuntary attrition at 8.4 and 5.7 per cent, respectively,
the trend of Quiet Quitting, a sizeable proportion of employees appears disengaged from its workspace
observes Roopank Chaudhary, partner, human capital solutions, India at Aon.
Kumar points out that the talent gap is the principal reason
example.
According to the survey, companies dealing with technology platforms and products are also likely to see the highest hikes in
like Wipro backtracking on its initial offers of annual salary packages from Rs 6.5 lakh to Rs 3.5 lakh for freshmen.
Freshman employees
industries, such as technology platforms and products, are somewhat cautious in their salary budgets, while industries driven by domestic
demand, such as manufacturing or fast-moving consumer goods/fast-moving consumer durables, are bullish on their budget planning, compared
