Corporate India set to offer 9% salary hike to rein in attrition, says report

The salaried class can expect a 9 per cent salary hike this year on an average due to a more favourable investment outlook, especially in manufacturing and infrastructure development, according to a report.

The standard salary enhancement in 2022 is going to be 9 per cent against 7 per cent in the pre-pandemic year of 2019, according to the Michael Page Salary Report 2022.

Together with the unicorns, startups and new-age corporations are set to lead this trend with a commonly estimated hike of 12 per cent, it added. Growth sectors include the banking and financial services industry, property and construction, and manufacturing, the report noted.

It added that senior-level professionals with computer science backgrounds would be in an excellent position to negotiate for some of the highest paying jobs in India due to the growth of e-commerce and other sectors undergoing digital transformation.

The report said that data scientists (especially those familiar with machine learning), web developers, and cloud architects would be in high demand, especially if they have a bachelor’s degree or a master’s degree from a top-rated university.

It added that the average salary of technologists is expected to be higher than professionals with similar educational qualifications in other job functions.

Retaining top performers

The Michael Page Salary Report 2022 is based on information and facts derived from its proprietary data and network in India, including job advertisements and placements made in 2021, incorporating salary projections for 2022.

The report further stated that companies are now looking at retaining top performers with various offers, including shorter – quarterly or half-yearly – appraisal cycles, promotions, variable pay-outs, stock incentives, retention bonuses, and mid-term increments.

The report observed that employers do not expect any further significant impact of the pandemic on the market and are buoyant about future business plans.

High-performing individuals and employees with niche skills can expect above-average increments (20-25 per cent or even more on a case-by-case basis) as most organisations have become nimble to retain their top talent, the report added.

“The overall mood is positive as there is a general feeling that the pandemic is behind us. The hiring market has seen an impressive rebound, with companies competing against one another to attract and hire the best talent.

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“The mega boost results from rising attrition, a huge talent shortage and a dearth of in-demand skills that predominantly drive the salaries higher,” Michael Page, Managing Director India Ankit Agarwala, said.

He noted that professionals with niche skills would get higher salary hikes due to a massive shortage of such talent in the market.

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“Remuneration may be important, but it is not everything in talent attraction corporations that will focus on people’s first strategy from leadership communication. Mental well-being and flexible opportunities will ultimately win the war of talent,” he added.

(With inputs from agencies)