Indian employees can expect a sigh of relief as the latest Aon Salary Increase Survey predicts an average 9.5% hike for 2024. This comes after a strong 10.6% increase in 2023, signifying continued momentum in the job market. However, the report also highlights nuanced trends across sectors and regions, offering valuable insights for both employers and employees.
Key Findings:
- Average salary increase: 9.5% across all sectors
- Highest projected hikes: Technology (10%), Media & Gaming (10%), Financial Services (10%)
- Lowest projected hikes: Consumer Goods (9%), Retail (9%)
- Stronger increases in metros: Bengaluru (10%), Mumbai (9.8%), Delhi NCR (9.5%)
- Talent retention a key concern: 81% of employers facing skill shortages and high voluntary turnover
Decoding the Numbers:
The 9.5% average increase falls slightly short of the 10.3% predicted earlier by Aon, but remains significantly higher than pre-pandemic levels. This trend reflects India’s economic recovery and a competitive talent market driven by factors like:
- Digital transformation: Increased demand for tech skills across industries
- Start-up boom: Fierce competition for talent in emerging sectors
- High attrition rates: Companies offering higher salaries to retain employees
Industry-Wise Analysis:
While the overall trend is positive, specific sectors stand out:
- Tech, Media & Gaming: The demand for specialized skills and rapid growth propel high salary increases.
- Financial Services & Retail: Continued growth and talent mobility drive marginally higher hikes compared to 2023.
- Consumer Goods: Despite a slower growth rate, salaries are expected to keep pace with inflation.
Regional Disparities:
Salary increases might vary across regions:
- Metros: Competitive talent markets in Bengaluru, Mumbai, and Delhi NCR lead to higher projected hikes.
- Non-metros: Growth is expected, but at a slightly slower pace compared to metros.
Beyond the Numbers:
The report goes beyond salary figures, highlighting crucial HR challenges:
- Skill gap: Addressing talent shortages and upskilling the workforce remains critical.
- Employee expectations: Companies need to focus on holistic employee wellbeing and career development.
- Compensation strategies: Offering competitive salaries alongside flexible benefits will be key to attracting and retaining talent.
What it Means for You:
- Employees: If you’re looking for a job change, this is a good time to negotiate for a higher salary.
- Employers: Be prepared to offer competitive compensation and benefits to attract and retain talent.
Remember:
- Individual salary increases may vary based on factors like performance, experience, and company policies.
- This is a national average, and individual experiences may differ.
