In India, higher salaries are going to return and a 9.3 per cent pull up is expected to occur in 2022.
The increase was only 8 per cent in 2021. Now the companies are planning to provide workers with more income. The firms are facing big challenges in attracting employees and keeping them.
The global advisory, broking and solutions company Willis Towers Watson released the ‘Salary Budget Planning Report’.
The predicted salary increase in India is the greatest of its kind in the Asia-Pacific region. There is a positive outlook regarding the enterprise for the next 12 months.
435 Indian companies were included in the 13 markets of the Asia-Pacific region. That is, a total of 1405 firms of various sectors participated in the Salary Budget Planning Report. It was a biannual survey and was carried out from May 2021 to June 2021 through digital platforms.
The report is optimistic and gives hints about a much-needed economic recovery. About 52.20 per cent of the Indian firms projected improvement in business for the next year. It was just 37 per cent in the 4th quarter of 2020.
30 per cent of the companies are arranging to hire more employees in the next 12 months. That is more or less three times than that of 2020
Most of the doors are going to be opened in good salary commanding fields like Engineering, IT, technically-skilled traders, sales and finance.
Strengthening optimism of the firm’s is transforming into rising salaries and more employment opportunities. The COVID-19 became a turning point in the way employers approach employees.
Since retaining the workers in the firm is a challenge, their efforts must go beyond salary hikes. Other benefits and skill up-gradation programmes should be there.
9.90 per cent salary hike for the high-tech sector, 9.50 per cent salary hike for consumer goods and retail sector and 9 30 per cent salary hike for the manufacturing sector is predicted to happen in 2022.
Even if we compare with 2021, the high tech sector shows the highest hype of 1.9 per cent. Unlike other sectors, the high tech sector found an opportunity during the pandemic to accelerate the digitalization processes in firms like artificial intelligence and automation.
The energy sector is at the biggest disadvantage. The present macroeconomic environment as well as the pandemic has made this.