Employees of India Inc may be in for a pleasant surprise as prices climb, as many companies plan to offer salary increases that exceed pre-pandemic levels at a time when there is a severe skills shortage and the economy is picking up.
According to a survey by recruiting agency Michael Page India, which covered more than 500 large, medium, and small companies across 13 main industry sectors, the average salary increase this year will be 9%, up from 7% in the pre-pandemic year of 2019.
According to the Michael Page India Salary Report 2022, startups and new-age enterprises, including unicorns and soonicorns, are likely to steal the show with an average predicted salary hike of 12 percent.
According to the research, growth areas include banking and financial services, real estate and construction, and manufacturing.
According to the report, due to the growth of e-commerce and other sectors experiencing digital transformation, senior-level professionals with computer science degrees will be in a strong position to bargain for some of the top paying jobs in India, according to the report.
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According to the research, data scientists (particularly those with machine learning experience), web developers, and cloud architects will be in great demand, especially if they have a bachelor’s or master’s degree from a top-rated university.
It further stated that engineers are projected to earn higher average pay than professionals with identical educational backgrounds in other job areas.
The Michael Page Compensation Report 2022 is based on statistics and facts gleaned from the company’s own data and network in India, including job advertisements and placements from 2021, as well as salary forecasts for 2022.
The report further stated that companies are now looking to retain 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.
Large and traditional businesses in IT/IT-enabled services, manufacturing and engineering, healthcare and life sciences, retail, global in-house centres (GICs), fast-moving consumer goods (FMCG), and banking and financial services (BFSI) will see average increases of 8-12 percent.
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.
“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.
“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 PTI)