Indian companies to see 9.9% wage increase in 2022: report
New Delhi: After a volatile period of the pandemic, Indian organizations are expected to see a salary increase of 9.9% in 2022, compared to 9.3% in 2021, according to a new report published on Wednesday.
India continues to project the highest salary increases among the BRIC (Brazil, Russia, India and China) countries in 2022, with Brazil at 5%, Russia at 6.1% and China at 6. %.
The industries with the highest projected salary increases are e-commerce and venture capital, high-tech/IT and IT-based services (ITeS), and life sciences, according to the world’s leading security company. Aon Professional Services.
However, Indian organizations also reported the highest attrition figure – 21% – for more than a decade in 2021.
“Wage increases should be a welcome break for employees in a volatile time. For employers, this could seem like a double-edged sword when you combine the rising cost of talent with record numbers of attrition,” said Nitin Sethi, Partner and CEO of Aon’s Human Capital Solutions in India.
“This trend is fueled by economic recovery and the need for organizations to invest in new-era capabilities to build a resilient workforce,” he added.
The report analyzed data from 1,500 companies across more than 40 industries.
“Even sectors that struggled in the first wave of the pandemic, such as retail, logistics and quick service restaurants, have rebounded by focusing on modern commerce/digital channels, which is translates into salary increases of 8% and more,” said Roopank Chaudhary, Aon’s Human Capital Solutions Partner in India.
“However, we see potential headwinds due to strong expected inflationary pressures and the still prevalent COVID-19 threat.”