Despite the second wave of COVID-19 in the country, Indian organizations have displayed resilience, and wage growth is projected to increase from an average of 8.8 per cent this year to an estimated average of 9.4 per cent in 2022. Survey. According to AON’s 26th annual wage growth survey released on Tuesday, most businesses have an optimistic outlook in 2022, with 98.9 percent of companies intending to deliver a pay hike in 2022, compared to 97.5 percent of companies in 2021.
There is positive sentiment across most sectors, and India Inc is on a recovery track, with most firms projecting wage growth at FY20 levels by FY2020. “This is a strong sign of financial health and a boom in the economy. There is a clear increase, from 6.1 wage increases in 2020, we have realised to 8.8 per cent in 2021 and 9.4 per cent projected wage growth for 2022, which is comparable to the pandemic numbers we saw in 2018. and 2019,” said Rupank Choudhary, partner in Aon’s human capital business.
The survey further said that the pandemic has accelerated the digital journey for organizations and has led to an unprecedented war for digital talent in the short term and wage growth budgets and workforce across sectors. Choudhary said businesses will have to redefine their talent strategies to keep pace with the war for talent.
Choudhary further said that most Indian organizations, in traditional and non-traditional sectors, are investing in digital capabilities to keep up with the pace of growth and disrupt their industries. “Employees with digital and technical skills are most successful in 2021, as we see the highest wage growth for employees with these skills across sectors. We expect this trend to accelerate over time, as there is an increasing need for this talent as organizations transform their business models and create resilient workforces,” Choudhury said.
According to Nitin Sethi, Partner and CEO, AON’s Performance and Rewards Businesses in India, while 2021 is a year where some sectors remain under stress due to the COVID-19 pandemic, most businesses have an optimistic outlook in 2022 and are looking for higher salaries. are guessing. increases. “We see positive sentiment across most sectors, with continued FDI in the country with high investor confidence and increasing consumer demand across most sectors,” Sethi said.
The top three sectors with the highest wage growth projected for 2022 for India are technology, e-commerce and IT-enabled services. “Sectors such as high-tech/information technology, e-commerce and business services accounted for more than 10 percent of the estimates,” said the study, which analyzed data from 1,300 companies across 39 industries.
The sectors with the lowest wage growth projected for 2022 are hospitality, engineering services and energy. While wage hikes indicate a strong recovery, the rise is up to 20 per cent driven by buoyancy and demand and highlights a renewed battle for talent.
“The high double-digit attrition is the strongest in more than a decade. The war for talent is back in India, which we anticipate will continue to be high. The question for Corporate India is whether this level of growth will be sustained over the long term?” said Sethi.
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