The study showed that sectors such as Life Sciences, Engineering Services, Chemicals and Media are projecting a higher increase than the market average. Real estate moved up several notches because of positive sentiments in the economy. Services industries like Retail, Financial Institutions, and Hospitality however represented the lower end of salary increase projections.
“On the back of improving business confidence, a stable government and moderating inflation there is a significant improvement in business confidence across companies, however this confidences is not reflecting in salaries. The projected salary increase number shows a subtle improvement over salary increases in the last 3 years. Companies across industries are continuing to take a cautious stance and are not going for aggressive pay increases,” said Anandorup Ghose, Rewards Consulting Practice Leader at Aon Hewitt India. The 19th edition of the study was conducted had data analysed from 580 companies.
The survey also shows that almost 70% of the respondents expect improvement in the business outlook and half of all firms believe that positive business sentiment and increasing pay budgets in their competitive market are driving factors in their decision to increase salary projections from earlier years.
Companies have also become more severe in their ratings and the number of top performers has fallen by 30%. This proves that companies will make their talent differentiations sharper and make budget allocations accordingly.