Despite Covid-19, salary increments to rise by 9.4% in 2022: Report
India Inc is firmly on the path to recovery, with most firms projecting salary hikes back to FY 2019 levels by FY 2022
A survey by Aon has projected salary increments to grow from an average of 8.8% this year to an estimated average of 9.4% in 2022, despite the second wave of the Covid-19 pandemic hitting the nation hard. The 26th Annual Salary Increase Survey released on Tuesday gave an optimistic view going into 2022, with 98.9% of companies intend to give salary increases in 2022, as compared to 97.5% companies in 2021.
India Inc is firmly on the path to recovery, with most firms projecting salary hikes back to FY 2019 levels by FY 2022, with positive sentiment across most sectors.
Digital jobs in demand
The survey further noted that the pandemic has accelerated the digital journey for organisations and this has led to an unprecedented war for digital talent in the short term and is driving up salary increase budgets and attrition numbers across sectors.
Businesses will have to redefine their talent strategies to keep pace with the war for talent, it said.
It further noted that most Indian organisations, across traditional and non-traditional sectors, are making investments in digital capabilities to sustain the growth momentum and disrupt their industries.
According to Aeon survey, 2021 is a year where certain sectors remain under stress due to the Covid-19 pandemic, most businesses have an optimistic view going into 2022 and are projecting higher salary increases.
The top three sectors with the highest salary increase projected for 2022 for India are technology, e-commerce and IT-enabled services, it added.
Sectors such as Hi-Tech and Information Technology, E-Commerce and Professional Services have projected greater than 10%, the study that analysed data from 1,300 companies in 39 industries said.
The sectors with the lowest salary increase projected for 2022 are hospitality, engineering services and energy.
While salary increments indicate strong recovery, attrition has shot up to 20%, driven by buoyancy and demand and highlights a renewed war for talent.