Salaries in India are poised for a 9.5 per cent increase in 2024, a marginal dip from the 9.7 per cent hike witnessed in 2023. Aon plc, a global professional services firm, sheds light on the trends shaping the Indian job market in its annual salary increase and turnover survey for 2023-24. With data analyzed from 1,414 companies spanning nearly 45 industries, the report paints a comprehensive picture of the nuanced salary dynamics and workforce trends in the country.
The Stabilization of Salary Increases:
Post the pandemic-driven surge in 2022, salary increments in India seem to have stabilized in the high single digits. This stabilization is attributed to a strategic adjustment response to the evolving economic landscape. Despite conservative global sentiments, industries like infrastructure and manufacturing project robust growth, emphasizing the need for targeted investments in specific sectors. Roopank Chaudhary, Partner and Chief Commercial Officer for Talent Solutions at Aon in India, underscores the significance of these adjustments in aligning with market dynamics.
Global Salary Trends:
India continues to lead major economies in salary increases, even amid geopolitical tensions. Following closely are Bangladesh and Indonesia with 7.3 percent and 6.5 percent average salary increases in 2024, respectively. This reaffirms India’s resilience and economic buoyancy in the face of global uncertainties.
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Attrition Rates and Competitiveness:
The survey reveals a notable decline in overall attrition rates from 21.4 per cent in 2022 to 18.7 per cent in 2023. This shift indicates a competitive job market, potentially reaching its peak in turnover rates. A decrease in attrition is considered favourable for organizations, enabling them to channel resources towards enhancing capability and productivity. This shift towards a more stable employment environment creates a positive cycle for businesses.
Sector-wise Disparities: Financial institutions, engineering, automotive, and life sciences are anticipated to offer the highest salary increases, highlighting the continued growth of these sectors. In contrast, retail and technology consulting and services are expected to see the lowest salary hikes. This divergence underscores the sector-specific challenges and opportunities in the evolving job market.
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Preparing for 2024:
As organizations prepare for 2024, the focus is expected to shift from merely offering generous salary increments to building a supportive work environment that fosters employee engagement. Jang Bahadur Singh, Director for Talent Solutions at Aon in India, emphasizes the need for leaders to adapt to the dynamic job market and nurture a workplace conducive to employee satisfaction and productivity.
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Global Workforce Dynamics:
Beyond regional nuances, the global workforce is on the brink of significant disruption with the advent of Artificial Intelligence (AI) and Machine Learning (ML). The survey suggests that talent professionals must formulate people strategies that build resilience and agility. Adapting to changing business dynamics and aligning talent supply with evolving demand patterns becomes paramount in navigating the future workforce landscape.
India’s Unique Proposition:
Aon identifies India as having a unique proposition of scale and capability for the globe. Early signs indicate that the country is poised to lead the next wave of AI/ML-led disruption. The challenge for Indian businesses and talent professionals lies in harnessing this potential while staying attuned to global trends and demands.
Conclusion:
As India braces for the salary landscape of 2024, the Aon survey unravels key insights. The stabilization of salary increases, sector-specific variations, and the looming influence of AI/ML underscore the need for organizations to adopt strategic and adaptable approaches. Navigating the dynamic job market requires a holistic perspective, from fostering a supportive work environment to aligning with global workforce trends. India, with its unique strengths, stands on the precipice of shaping the future of work in the AI/ML era.
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