India Inc is likely to give an average hike of 9 per cent salary hike this year due to a more positive investment outlook, especially in manufacturing and infrastructure development, according to a report.
The common salary enhancement in 2022 is going to be 9 per cent against 7 per cent in the pre-pandemic year of 2019, according to the Michael Page Salary Report 2022.
Startups and new-age corporations, together with the unicorns, are set to lead this trend with a commonly estimated hike of 12 per cent, it added.
Growth sectors include the banking and financial services industry, property and construction, as well as manufacturing, the report noted.
Senior-level professionals with computer science backgrounds will be in a good position to negotiate for some of the highest paying jobs in India, due to the growth of e-commerce and other sectors undergoing digital transformation, it added.
Data scientists (especially those familiar with machine learning), web developers and cloud architects will be in high demand, especially if they have a bachelor’s degree or a master’s degree from a top-rated university, the report said.
The average salary of technologists is expected to be higher than professionals with similar educational qualifications in other job functions, it added.
The Michael Page Salary Report 2022 is based on information and facts derived from its proprietary data and network in India, including job advertisements and placements made in 2021, incorporating salary projections for 2022.
The report further stated that companies are now looking at retaining top performers with an array of offers, including shorter – quarterly or half-yearly – appraisal cycles, promotions, variable pay-outs, stock incentives, retention bonuses, and mid-term increments.
Employers do not expect any further significant impact of the pandemic on the market and are buoyant about future business plans, the report observed.
High performing individuals and employees with niche skills can expect above-average increments (20-25 per cent or even more on a case-by-case basis) as most organisations have become nimble when it comes to retaining their top talent, it added.
“The overall mood is positive as there is a general feeling that the pandemic is behind us. The hiring market has seen an impressive rebound, with companies competing against one another to attract and hire the best talent.
“The mega boost is the result of rising attrition, a huge talent shortage and a dearth of in-demand skills that are predominantly driving the salaries higher,” Michael Page Managing Director India Ankit Agarwala said.
Professionals with niche skills will get higher salary hikes due to a huge dearth of such talent in the market, he noted.
“Remuneration may be important, but it is not everything in talent attraction corporations which will focus on people’s first strategy from leadership communication, mental well-being and flexible opportunities will ultimately win the war of talent,” he added.