About 87 per cent companies in the country have said that they intend to pay out salary increases in 2021 compared to only 71 per cent companies in 2020, according to the latest Aon salary survey.

The Salary Trends Survey in India, which analysed data across 1,050 companies from more than 20 industries, said that 61 per cent of the organisations plan to offer increases in the 5-10 per cent range (projected). In 2020, only 45 per cent of the companies gave an increase in the same range.

Sectors such as high technology (hi-tech), information technology (IT), IT Enabled Services (ITeS), life sciences, e-commerce, chemicals and professional services are likely to offer the highest increase in salaries.

In a statement, Nitin Sethi, a partner at Aon, and CEO of the firm’s Performance and Rewards Solutions practice in India, said , “this is a special year — business leaders are putting investments in their employees and clients ahead of shareholder return. Despite the gravity of the Covid-19 pandemic in India and its deep impact on the economy, organisations in India have shown tremendous resilience and a mature view on talent.”

“Business and HR leaders made hard decisions in the second and third quarters of 2020 and are now betting on the green shoots of improving consumer demand. They see the need to invest in talent as a critical part of their recovery and growth prospects,” he added.

Companies in the hospitality, retail and real estate and infrastructure industries, which had given very low increases in 2020 are projecting a higher increase for 2021, but still trail most other sectors, the study added

Navneet Rattan, Director at Aon in India’s Performance and Rewards Solutions practice, said, “The impact of Covid-19 has been varied on different sectors and organisations. We see high differentials in salary increases – both intra and inter-industry.”

The difference between industries with highest increase to lowest increase hits 7.2 per cent points compared to mere 2.4 per cent points in 2019, he added

 

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