In spite of remaining conservative with pay hikes, Indian companies have started rewarding top performers handsomely at an average of 15.4 per cent, says Aon India's Salary Increase Survey - an analysis of data across 1000-plus companies from more than 20 industries. It projects overall salary increase for 2018 at 9.4 per cent. Anandorup Ghose, Partner at Aon India Consulting, says India will not see a double-digit pay hike in the next few years. In fact, it is likely to go down further. "Last year, when India was coming out of demonetisation and GST was coming in, the industry projected salary increase at 9.5 per cent. This year, when GDP and inflation are both expected to grow significantly, the salary increase has remained the same," he says.
However, focus on performance is getting sharper each year with top performers now getting an average salary hike of 15.4 per cent. The bell curve is sharpening with a significant drop in the percentage of people with highest ratings, but the number of people rated as low and average performers is rising. It means people with critical skills are in high demand and companies will pay for key talent.
- Sonal Khetarpal