Average salary increments may drop to 9.1% in 2023: Study
Average salary increments in India are expected to drop to 9.1% in 2023 from 9.4% in 2022 across almost all sectors, according to the debut edition of Deloitte India Talent Outlook 2023 released on Wednesday. The survey further said the Information Technology (IT) sector is likely to witness a massive drop in increments, while the Life Sciences sector may report the highest increments.
Inflation, slowing economy reasons for increment drop
Anandorup Ghose, Deloitte India's partner, told PTI that stubborn inflation, higher interest rates, and a slowing economy were the reasons for the expected drop in increments. "We saw Indian organizations 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," he added.
42% of companies don't revise frameworks regularly
According to the survey, about 42% of companies do not revise their frameworks to adapt to changing business requirements. Additionally, only 19% of organizations confirmed their employees had skills beyond their present roles. These were mostly in the IT, Information Technology Enabled Services (ITes), and consumer sectors. Meanwhile, 80% of organizations reported that their leadership teams lacked structured data to understand current skill capital.