Average increments to drop to 9.1% in 2023 from 9.4% in 2022: Survey

Average India increment in 2023 is expected to go down to 9.1% from 9.4% in 2022, the debut edition of Deloitte India Talent Outlook 2023 has revealed.

The study finds that 2023 increments are expected to be lower across almost all sectors, compared to 2022 actual increments. While the Life Sciences sector is expected to witness the highest increments in 2023, the IT sector will likely witness a major drop in increments as compared to 2022. Survey findings indicate that one in every three organisations is planning to give double-digit average increments.

Anandorup Ghose, Partner, Deloitte Touche Tohmatsu India LLP (Deloitte India), said, “The significant attrition levels across industries in late 2021 continued until early 2022. We saw Indian organisations budgeting the highest increment in 2022 over the last four years. What they also did was hire aggressively. This led to employee costs rising faster than revenue growth over the last 3–4 years in almost every other company. Stubborn inflation, higher interest rates, and a slowing economy are likely to make organisations more cautious this year. We expect increments and attrition to witness lower trends in 2023”.

Attrition in India reached 19.7% in 2022, up from 19.4% in 2021.

As female participation rates across white-collar jobs gradually increased to 25.3% in 2022 from 24.1% in 2021, workplaces today are making conscious efforts to include lesser-represented groups such as talent from the LGBTQ+ demographic and neurodiverse talent. Incorporating expansive diversity, equity, and inclusion policies to foster a safer, more inclusive culture has greatly improved employer brand value—especially amongst Millennial and Gen Z talent.

Sustainability initiatives are also gearing up efforts. Nearly 66% of our respondents reportedly have an ESG framework that extends beyond a CSR policy and 21% reported being in the planning phase of designing one. The scope of HR in helping organisations improve their ESG performance has been gradually expanding. The survey finds an emerging interest in establishing a “green-collar” workforce to align an organisation’s operations with international ESG regulatory standards. HR is also focusing on diversifying Boards, and bridging the gender pay gap in executive compensation.

Technology has come to the forefront for businesses in a post-COVID-19 operational context—with hybrid working models becoming more crucial while hiring talent and for employee retention. Currently, 3.8% of the total employee cost is budgeted for HR technology enhancements in most organisations. The Manufacturing and IT sectors emerged as the biggest investors in HR Tech in 2022, with the lion’s share of the tech portfolio being dedicated to cloud-based applications and data analytics tools for enhancing talent management processes.47% of organisations are investing in responsible AI for reimagining their talent acquisition process and nearly 40% are focused on integrating machine learning to predict employee turnover. However, the adoption of new technology continues to be an ongoing challenge.

Deloitte India Talent Outlook 2023 was launched in January 2023 as a B2B India-specific survey. Almost 300 organisations participated—across seven sectors and 25 sub-sectors.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts