New Delhi, Oct 20: India is followed by Sri Lanka (5.5 percent), China (6 percent), Indonesia (6.9 percent), and Singapore (3.9 percent) for the highest salary increase for 2021 in the Asia Pacific region.
Pointing towards a much-anticipated economic recovery, a majority (52.2 percent) of companies in India have projected a positive business revenue outlook for the next 12 months, up from 37 percent in Q4 2020.
This translates into increased hiring across businesses with 30 percent of companies planning to hire in the next 12 months. This is almost three times more than last year.
The survey also shows that a large part of hiring across sectors is likely to happen within critical functions such as engineering (57.5 percent), information technology (53.4 percent), technically skilled trades (34.2 percent), sales (37 percent), and finance (11.6 percent), and these jobs will command a high salary.
In addition, attrition rates in India, both voluntary and involuntary, have been lower as compared to other countries in the region. The voluntary attrition rate was 8.9 percent and the involuntary attrition rate was 3.3 percent.
“Increased business optimism is clearly translating into higher salary budgets and increased hiring activity. The pandemic was a watershed moment in the way organizations plan their people spend,” said Rajul Mathur, Consulting Leader India, Talent and Rewards, Willis Towers Watson, in a statement.
“While talent attraction and retention remain a challenge, the core employee value proposition will now need to go beyond just competitive salaries, and increasingly focus on a wider range of benefits, wellness, upskilling, and the overall employee experience. This trend is likely to reshape the people spend and total rewards philosophy in India going forward,” he added.
The high-tech sector is expected to see the highest salary increase at 9.9 percent in 2022, followed by the consumer products and retail sector at 9.5 percent, and manufacturing at 9.30 percent.
On the other hand, the energy sector received the lowest actual salary increase in 2021 at 7.7 percent. The projected salary of the energy sector in 2022 is also the lowest at 7.9 percent.
The bi-annual survey was conducted online between May and June 2021. A total of 1,405 companies representing a cross-section of industries from 13 markets in the Asia Pacific.
The survey has 435 Indian companies participating this year.