Techies, e-commerce employees likely to get over 10% salary hike in 2023: Survey

India is likely to witness the highest salary increases among large nations in 2022 as well as 2023, despite recession fears, a new survey has found.

Aon’s 28th Annual Salary Increase Survey 2022 reveals that hiring in double-digit is back with 46 percent of the organisations planning the same this year as well as the next.

While employees got average hikes of 10.6 percent in 2022, they can expect a 10.4 percent jump next year. This is the first time since 2017 that salary jumps are likely to be in double digits for two consecutive years, the report said.

Roopank Chaudhary, partner, Human Capital Solutions at Aon in India, said, “This increase is a reflection of the confidence that corporate India has in its strong business performance.”

Aon, which surveyed 1,300 companies for its report, said that it is interesting to note that inflation is unlikely to impact salary hikes too much as the hikes are based on a talent war even as volatility continues. Top performers are likely to get maximum hikes of above 15 percent, as per the report.

Among sectors, techies, employees in the e-commerce sector, professional services, financial institutions, and IT services will witness the highest salary increases, according to the survey. FMCG/FMCD, transportation, cement, infrastructure, and hospitality sectors are among those that will see the lowest hikes.

According to Jang Bahadur Singh, Director, Human Capital Solutions at Aon in India, said, volatility is a key determinant of salary increases by industries – the top salary increases are in the most volatile industries.

“As the broader economic circumstances impact the talent landscape, businesses must create holistic reward strategies unique to their situation and sector to retain and attract the talent they need. Data-driven insights give employers the clarity and confidence needed to make better decisions and build a resilient workforce across sectors,” he said.

The report added that India’s business outlook looks strong but has been moderating amid headwinds owing to a possible recession in the US even as the domestic economy has been showing resilience.

“Business outlook confirms a shift in focus beyond pandemic towards a growth agenda,” it said.

According to Aon, attrition in the country remains near a two-decade high of 20.3 percent, as Indian Inc. continues to reel under the impact of the great resignation wave.

As the focus remains performance-based, Chaudhary advised business leaders to make decisions that ensure their workforce remains resilient today as well as into the future. “They need to review their total rewards strategies and balance the impact of rising costs and salary pressures with a relatively high rate of attrition and the ongoing demand for critical talent,” he said.