Ashish Ranjan
According to Aon plc, salaries in India are projected to increase by 10.3% in 2023, the highest among main world economies and Asian peers.In 2022, salaries in India actually increased by 10.6 percent.
According to Aon plc’s 28th Annual Salary Increase Survey in India, despite economic volatility, double-digit salary growth will continue in India, primarily as a result of high attrition rates. India’s attrition rate remained high at 21,4% in 2022, as a result of an ever-evolving talent strategy and a persistent talent supply-demand gap.
“Despite concerns of global macroeconomic instability, India Inc. continues to be bullish on talent with consecutive double-digit increases.According to Pritish Gandhi, Aon’s Director and India Practice Leader, Executive Compensation & Governance, organisations are increasingly prioritising spending on top performers, essential talent, and high-potential talent.
India continues to have the highest salary increases in the region and among key world economies, according to a study that analysed data from 1,400 companies in more than 40 industries. Among other economies, Brazil, Indonesia, China, the Philippines, Malaysia, and Singapore are experiencing robust growth rates of 7.2%, 6.7%, 6.3%, 5.9%, 5.2%, 5.2%, 5.2%, and 4.8%, respectively.
Strong business growth, as reported by the world’s foremost provider of professional services, has resulted in a greater proportion of the population being placed in higher performance tiers. “Top-performance increments are approximately four times those of bottom-performance increments” (in companies which have given increments to both categories). “It’s interesting to note that nearly eight out of ten companies offer no raise for poor performance,” said Gandhi.
Globally connected industries, such as Technology Platform and Products, are somewhat cautious with their salary budgets, whereas industries driven by domestic demand, such as Manufacturing or FMCG/FMCD, are optimistic with their budget planning, according to Roopank Chaudhary, partner, Human Capital Solutions, India at Aon.
In 2023, e-commerce companies will offer the highest wage increases at 12.2%, followed by professional services companies at 11.2%, according to the survey.
According to the survey, companies in the life sciences and retail sector will be among those with the lowest salary increases, at 9.7%. To maintain workforce resilience and make more informed decisions, Chaudhary added that progressive organisations are contextualising salary increase planning with data-driven analysis and the unique circumstances of their own industry and organisation.
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As a result of a robust development outlook, businesses continue to be optimistic about hiring and wage increases.”Business sentiment is optimistic about growth, recruiting, and compensation. Even though growth is anticipated to moderate in the upcoming fiscal year, India-focused organisations continue to plan for long-term growth, while global organisations continue to invest in India as a talent factory.”
