LATEST NEWS – Employees in India are expected to get an average salary hike of just 9.5 per cent this year, lower than last year, while top performers will get lucrative hikes as companies are focusing on performance.
HR consultancy Aon Hewitt’s annual Salary Increase survey projects a drop in pay increases to an average of 9.5 per cent across industries. It was 10.2 per cent in 2016.
The gradual slowing of pay increases over the last few years (from 15.1 per cent in 2007 to the projected 9.5 per cent in 2017), and higher emphasis on performance indicated the “graying” of salary budgets for India.
“While it’s a marginal decrease from the 2016 spend, it reflects maturity that India Inc has displayed amidst global and Indian economic and political events. This includes, and is not limited to Brexit, recent changes in the US government and the much talked about demonetisation,” the survey that analysed data across over 1000 companies said.
Organisations are increasingly focusing on performance and key talent. The pay differentiation between the top and average performers has also increased and key talent is getting 1.8 times salary than that of an average performer.
Moreover, for key talent management, companies are resorting to various initiatives like career development, learning and development, international and functional mobility, leadership access among others. READ MORE