Pay rises are making a comeback. Companies in India plan to give employees larger rises in 2022 as they recover from the economic fallout of the pandemic and face mounting challenges attracting and retaining employees. Salaries are projected to see a median salary increase of 9.3% next year (translating to an average salary increase of8.8%) as compared to the actual median salary increase of 8% (average salary increase of 7.4%) in 2021, according to the latest Salary Budget Planning Report by Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions company.
Pointing towards a much-anticipatedeconomic recovery, a majority (52.2%)of companies in India have projected a positive business revenue outlook for the next 12 months, up from 37% in Q4-2020. This translates in increased hiringacross businesses with30% of companies planning to hire in the next 12 months. This is almost threetimes more than last year.
Commenting on the findings, Rajul Mathur, Consulting Leader India, Talent and Rewards, Willis Towers Watsonsaid, “Increased business optimism is clearly translating into higher salary budgets and increased hiring activity. The pandemic was a watershed moment in the way organisations plan their people spend. 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.