Average salary increase expected to be 8-12% in 2022: report
Bombay: India Inc is expected to yield an average 9% wage hike this year due to a more positive investment outlook, particularly in manufacturing and infrastructure development, according to a report.
The common salary increase in 2022 will be 9% compared to 7% in the pre-pandemic year 2019, according to the
Startups and new-age companies, as well as unicorns, are expected to lead this trend with a commonly estimated 12% upside, he added.
Growth sectors include the banking and financial services industry, real estate and construction, as well as manufacturing, the report notes.
High-level professionals with a background in IT will be well placed to negotiate some of the highest paying jobs in India, due to the growth of e-commerce and other sectors undergoing digital transformation, he 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 or master’s degree from a top university , according to the report.
The average salary of technologists is expected to be higher than that of professionals with similar educational qualifications in other job functions, he added.
The report further states that companies are now looking to retain the best with a range of offers, including shorter evaluation cycles – quarterly or semi-annually – promotions, variable payments, equity incentives, bonuses retention and mid-term increases.
Employers do not expect any further significant impact of the pandemic on the market and are enthusiastic about future business plans, the report observes.
High performers and employees with niche skills can expect above-average increases (20-25% or even more on a case-by-case basis) as most organizations have become agile when it comes to is about retaining their best talent, he added.
“The general 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 to attract and hire top talent.
“The mega boost is the result of increased attrition, a huge talent shortage, and a shortage of in-demand skills that are primarily driving up salaries,”
Professionals with niche skills will get higher salary increases due to a huge shortage of such talent in the market, he noted.
“Compensation may be important, but it’s not everything in talent attraction companies that will focus on people first strategy from leadership communication, mental well-being and flexible opportunities who will end up winning the talent war,” he added.