Salary Hikes in India: A Mixed Forecast for 2024
Indian professionals can expect a decent bump in their paychecks this year, but the picture is more nuanced than a single number suggests. Here’s a breakdown of the trends:
Two major reports paint a picture of moderate growth:
- EY’s Future of Pay 2024 predicts an average salary increase of 9.6% for Indian companies in 2024, similar to the increase observed in 2023.
- Deloitte India Talent Outlook 2024 suggests a slightly lower average increment of 9.0%, compared to 9.2% in 2023.
It’s important to note that these are averages, and individual experiences may differ based on factors like industry, job role, and performance. Interestingly, Deloitte’s report also highlights that one-third of organizations plan to offer double-digit increments in 2024, suggesting there could be pockets of stronger salary growth within specific sectors.
Job Seekers Hold the Edge
While salary increases might be slightly lower than previous years, the job market seems to favor employees seeking a change. According to LinkedIn, a significant portion of Indian professionals (around 90%) are utilizing video and digital resumes to stand out in their job searches. This, coupled with a shift in job search strategies by 72% of professionals, indicates a proactive workforce seeking better opportunities.
Growth Areas and Opportunities
The report also sheds light on the fastest-growing job roles in 2024. Closing managers, influencer marketing specialists, and design specialists are projected to see growth exceeding 79%. Targeting upskilling or reskilling efforts in these areas could be beneficial for professionals seeking career advancement and potentially higher salaries.
Employee Expectations: A report by staffing firm Adecco (as cited by Moneycontrol) reveals that while only half of Indian employees feel their current compensation aligns with the industry average, a significant portion (29.5%) believe they are underpaid. This highlights employee expectations for salary increases, with many seeking new jobs that offer better compensation. Notably, the report suggests that employees in India expect a substantial 20% salary hike when they switch jobs.
Aon India Salary Increase and Turnover Survey: A different perspective comes from Aon’s Salary Increase and Turnover Survey (reported by People Matters and Business Standard). This survey predicts a more moderate average salary increase of 9.5% across all sectors in India for 2024. The report also indicates a decline in attrition rates, which could be influencing companies’ salary hike strategies. With employee turnover decreasing, some organizations might be focusing more on benefits and work environment improvements to retain talent.
Sectoral Variations: There seems to be consensus that certain sectors will experience higher salary increases than others. Manufacturing and professional services are expected to lead the pack according to Aon (reported by People Matters). Similarly, Business Insiderhighlights that IT and manufacturing are likely to see stronger growth, while sectors like hospitality and tourism might face constraints.
In conclusion, while there is some variation in predictions, the overall outlook for salary increases in India in 2024 is positive. The average hike is likely to be around 9-9.5%, with pockets of higher growth in certain sectors. Employee expectations remain high, particularly for those seeking job switches. The economic climate and its impact on specific industries will also play a role. As a job seeker, it’s important to stay informed about trends in your field and leverage your skills to position yourself for the best possible compensation.
Sources
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