According to HR consultancy Aon Hewitt’s annual salary survey – there will be an increase in the average salary of 9.4% in 2018, same as last year, for employees in India.
As companies shift their focus on performance, key talent can get a hike of up to 15.4%.
The survey analysed data of over 1000 companies from 20 different work sectors.
Aon Hewitt annual salary survey argues that pay hikes in the country will be between 9.4-9.6%. In 2017, most companies gave an increment of 9.3% during 2017, leaving behind double-digit hikes which were a common trend for the organisations since the survey first started.
India continues to be ahead of other countries in the Asia-Pacific region. China is expected to provide a salary hike of 6.7%, Philippines 5.8%, Malaysia 5.1%, Singapore 4%, Australia 3.2% and Japan 2.5%.
The study confirmed that the focus on performance will be more critical than ever.
“All companies have highlighted the shortage of critical skills as a key concern. Thus, they are becoming more cautious in recognising and rewarding their key talent. In fact, HR budgets are being realigned towards top performers,” said Anandorup Ghose, Partner at Aon India Consulting told reporters here.
There are some industries where the double-digit hike is continuing, such as professional services, consumer internet companies, life sciences, automotive and consumer products.
Despite an improvement in macroeconomic forecasts—salary hikes are similar to last year and are becoming more nuanced. “Now, there are diverse factors impacting salary increases such as the size of the company, business dynamics within the sub-industry, nature of talent requirements and quite obviously, performance,” Ghose said.
Another noteworthy finding from the Aon Hewitt annual salary survey is the downward trend in the overall attrition rate in India from an average of 20% in the previous decade to 15.9% in 2017.