According to Mercer’s Total Remuneration Survey, organizations are reverting to pre-pandemic levels of compensation, with a projected increase of 9% across industries in 2022, following a temporary dip in 2020.
While the industry average increment is predicted to be 9% in 2022, up from 7.7% in 2020, sectors including consumer, health sciences, technology, and GIC are all forecasting bigger increments in 2022 than the industry average.
According to the statistics, the most difficult positions for talent recruitment and retention include data analytics, internet, engineering, and sales and marketing.
“The TRS overwhelmingly indicates that technology-related talents would be rewarded with a significant premium in the current and next several talent cycles till some form of correction comes in,” Mansee Singhal, Sr Principal, Rewards Consulting Leader India, said in a statement.
One significant positive is that businesses are returning to pre-pandemic levels of reward investment, which is predicted to be about 9% for all industries in 2022, up from 7.7% in 2020, signifying healthy economic and business trends.
The poll also discovered that compensation for new employees across tenure remained very competitive, with the Premium for last-year joiners across levels, with the Premium for last-year joiners being particularly significant at mid to senior managerial posts. Also, because of the influx of campus talent at the entry- level. For Techno functional roles, there was a greater investment in compensation (especially in IT product organizations).
Incentives in technology were back to 2019 levels of 9% across all employee categories, higher than the all-industry average of 8% for 2021. The median to a median increase in tech salaries across professional streams is 17 percent on average during four years from 2018 to 21. Within the Internet job family, key specializations that attract a premium are Software Development, R&D, Pre-sales product consultancy, and Data sciences, which account for 12% of the total.
While Bangalore continues to command a considerable premium for software development engineering professions, average high-tech salaries in Delhi and Mumbai have begun to rise, since the majority of Internet / Ecommerce enterprises are situated in these two cities.
In the second half of 2021, the Mercer Total Remuneration study was done with 988 organizations, 5700 job functions, and over 14 lakh employees. Technology, Services, Life Sciences, Automotive, Manufacturing, Logistics, Energy, and Consumer were among the industries represented in the survey.