Aon released insights from its latest Salary Increase Survey in India. The study, the largest and the most comprehensive of its kind in India, analyzed data from 1,300 companies in 39 industries. The survey found that Indian companies increased salaries by 8.8% on average in 2021. The 2022 projection of an average 9.4% salary increase is a sign of strong economic recovery and improved consumer sentiment.
Nitin Sethi, partner and CEO of Aon’s performance and rewards businesses in India, commented, “While 2021 is a year where certain sectors remain under stress due to the COVID-19 pandemic, most businesses have an optimistic view going into 2022 and are projecting higher salary increases. We see positive sentiment across most sectors, high investor confidence with sustained foreign direct investment flowing into the country and growing consumer demand across most segments.
“High double-digit attrition is the strongest we have seen in more than a decade. The war for talent is back in India, which we anticipate will keep salary increases high. The question for corporate India is, will this level of increases be sustainable in the long run?”
The top three sectors with the highest salary increase projected for 2022 for India are technology, e-commerce and IT-enabled services. The sectors with the lowest salary increase projected for 2022 are hospitality, engineering services and energy.
Roopank Chaudhary, partner in Aon’s human capital business, said, “Despite another wave of COVID-19 hitting the nation hard, Indian organizations have displayed resilience in riding through the tough times. While pandemic risk in India continues, the business sentiment and salary projections for 2022 tell us that employers are building for growth and are much better prepared than in 2020. Most Indian organizations, across traditional and non-traditional sectors, are making investments in digital capabilities to sustain the growth momentum and disrupt their industries. Employees with digital and technological skills are the most successful in 2021, as we see the highest salary increase for employees with these skills across sectors. We expect that this trend will intensify over time, as organizations have an increased need for this talent to transform their business models and build resilient workforces.”