Indian corporations are set for a median wage enhance of 9.6 per cent in 2024, much like the precise enhance in 2023, in response to an EY report launched on Wednesday. It additionally mentioned hybrid work tradition is gaining significance because it helps improve work-life stability, productiveness, and satisfaction.
The report mentioned that general attrition throughout 2023 dropped to 18.3 per cent, in contrast with 21.2 per cent in 2022.
“E-commerce is expected to have the highest salary growth in 2024 at 10.9 per cent, followed by financial services with a projected growth of 10.1 per cent. Professional services’ salary is set to grow by 10 per cent in 2024, suggesting a rebound as companies invest in strategy alignment to navigate global business complexities,” in response to the second version of EY ‘Future of Pay 2024’ report.
The impression of actual property and infrastructure as an rising sector can be seen, as increments proceed to be secure at 10 per cent, it mentioned.
Abhishek Sen, Partner and Leader, Total Rewards, HR Technology and Learning, People Advisory Services, EY India, mentioned, “While overall average salary increase in India Inc holds steady compared to last year, certain sectors such as e-commerce, financial services and professional services firms are poised for significant pay raise in 2024.”
He added that there’s additionally a discernible pattern in direction of embracing a extra complete Rewards Value Proposition (RVP) to drive higher ROI throughout all industries. Going ahead, organizations will harness the transformative energy of AI to craft bespoke advantages packages, optimize reward procedures, and elevate general worker satisfaction at office.
Top Talent Trends In 2024
“Hybrid work cultures is gaining importance as it helps enhance work-life balance, productivity, and satisfaction,” it mentioned.
Unique hiring developments are noticed in varied sectors, like formation of ESG groups in monetary companies sector. There is an rising pattern in direction of ESG reporting amongst Indian corporations with 60 per cent companies already using or on their method to utilise ESG insurance policies, the report mentioned.
Attrition Across Sectors
“Overall attrition is set to gradually decline over the next few years as companies prioritise cost management and employee wellbeing, stabilising the workforce amidst high talent demand,” mentioned the report.
The highest ranges of attrition in 2023 prevailed in monetary companies (24.8 per cent), skilled companies (24.2 per cent) and data expertise (23.3 per cent).
This yr, voluntary attrition decreased barely, whereas involuntary attrition rose, significantly amongst international corporations, indicating layoffs in the IT and startup sectors on account of international financial modifications.
Trends in Total Rewards
A complete of 80 per cent of the organisations emphasised the significance of ‘pay and benefits’ and a necessity to maneuver away from conventional worker advantages in the trendy workforce. Top-three areas of focus for employers are advantages value planning (43 per cent), worker wellness (29 per cent), evaluating and aligning with trade requirements (20 per cent).
At 43 per cent, variable pay plan (non-gross sales) are the commonest kind of incentives plans supplied in the organisation, adopted by discretionary incentives (32 per cent) and gross sales incentive plan (21 per cent).
LTIPs Becoming More Diverse, Flexible
According to the report, organisations have been creatively revamping their lengthy-time period incentive plans (LTIPs) in current years. Shifting from money rewards to inventory incentives, round 26 per cent of corporations focussed on LTIPs for efficiency rewards in FY23. There can be a marked enhance in penetration of this rewards element throughout non-CXO cadres fuelled largely by the booming new age digital enterprise development in India.
