The average corporate salary hike in India is slated to be in the range of 8 to 11 per cent across levels this year, talent company Randstad India said. The junior professionals, with a work experience of 0 to 5 years, are expected to get the highest increment in the range of 10 to 11 per cent.
The demand for and confidence in hiring freshers and junior professionals is uniformly high across Tier-I and Tier-II cities in India.
For senior professionals with more than 15 years of work experience, the projected salary increases are anticipated to be the lowest across all tiers, typically in the range of 8-9 per cent. Professionals at an intermediate level can expect a slightly higher average annual raise estimated between 9-10 per cent.
"It is important to acknowledge that monetary compensation is gradually becoming more and more skill and outcome-based, the reason why professionals with highly specialised and niche skill sets will command more flexibility when it comes to salary negotiations," Viswanath PS, Managing Director and Chief Executive Officer at Randstad India told Business Standard.
Within the various industries, it is anticipated that the greatest salary increases will be in sectors --- internet/e-commerce, manufacturing, and Banking Financial Services & Insurance (BFSI). These sectors are projected to experience an average wage increase within the scope of 10-12 per cent for this fiscal year.
Randstad India reported that the enhancement towards a value-added paradigm in the e-commerce sector has significantly accelerated the need for middle to senior-level management personnel who are capable of driving business expansion.
In regards to manufacturing sector, factors contributing to wage increases can be associated with technological advancements, amplified requisition for skilled resources, and underscored attention on innovation, research and automation practices.
However, information technology and information technology-enabled services (IT/ITeS) may witness the lowest salary hikes in the range of 7 to 9 per cent owing to global headwinds.
Viswanath said that this sector will most likely have a recovery in the second half of the year, setting up a strong foundation for better salary hikes in the next cycle.
Talking about attrition, Viswanath said the levels may recover to pre-pandemic level in the next 12-18 Months
The data additionally indicates that employee attrition rates in 2024 are projected to range between 13-14 per cent, a decrease from the years of the pandemic. The attrition rates during 2022 and 2023 were noted to be within an elevated bracket of 18-20 per cent. It is critical to note, though, that this remains higher than the pre-pandemic figure of 11-12 per cent recorded in 2020. Projections suggest a likely downward trend over the forthcoming period of approximately 12-18 months when it could potentially drop below pre-pandemic levels.
"Companies across sectors are making heavy investments to retain top talent and combat the existing supply gap, especially for niche skills," said Viswanath.
He added that the professionals are being very selective about the kind of companies they want to work for and due to this, employers are deploying various retention strategies. These are driven by a mix of fair compensation, learning and development opportunities, and a healthy work-life balance.