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Saturday, July 20, 2024

Indian Businesses Expect 9.6% Average Salary Increase in 2024; Hybrid Technology Will Grow in Significance: EY Report

<p>According to an EY analysis issued on Wednesday, Indian firms are expected to have average compensation increases of 9.6% in 2024, which is comparable to the actual growth in 2023. It is also said that hybrid work cultures are becoming more and more significant since they improve happiness, productivity, and work-life balance.</p>
<p><img decoding=”async” class=”alignnone wp-image-480793″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-indian-businesses-expect-9-6-average-salary-increase-in-2024-hybrid-technology-wil.jpg” alt=”theindiaprint.com indian businesses expect 9 6 average salary increase in 2024 hybrid technology wil” width=”1043″ height=”782″ title=”Indian Businesses Expect 9.6% Average Salary Increase in 2024; Hybrid Technology Will Grow in Significance: EY Report 3″></p>
<p>According to the research, total attrition decreased to 18.3% in 2023 from 21.2 percent in 2022.</p>
<p>“The largest anticipated wage rise in 2024 is predicted to be in e-commerce, at 10.9 percent, followed by financial services, at 10.9%. The second edition of the EY “Future of Pay 2024” research projects a 10% growth in professional services salaries in 2024, indicating a resurgence as businesses engage in strategy alignment to manage global business challenges.</p>
<p>Since increases are still consistent at 10%, the influence of real estate and infrastructure as developing sectors is also evident, the report said.</p>
<p>“While the overall average salary increase in India Inc. holds steady compared to last year, certain sectors, such as e-commerce, financial services, and professional services firms, are poised for significant pay raises in 2024,” stated Abhishek Sen, Partner and Leader, Total Rewards, HR Technology and Learning, People Advisory Services, EY India.</p>
<p>In order to improve ROI across all businesses, he said, there is a noticeable trend towards adopting a more thorough Rewards Value Proposition (RVP). In the future, businesses will use AI’s revolutionary potential to create custom benefit plans, streamline the award system, and improve worker happiness in general.</p>
<p><strong>2024’s Top Talent Trends</strong></p>
<p>It said, “Hybrid work cultures are becoming more and more important as they help enhance work-life balance, productivity, and satisfaction.”</p>
<p>Diverse industries have seen unusual employment practices, such as the establishment of ESG teams in the financial services industry. According to the research, there is a growing trend in Indian business towards ESG reporting, with 60% of enterprises either using or planning to use ESG policies.</p>
<p><strong>Attrition Between Industries</strong></p>
<p>As organizations prioritize cost control and employee health, overall attrition is expected to progressively fall over the next several years, stabilizing the workforce in the face of increasing talent demand, according to the research.</p>
<p>In 2023, the industries with the greatest attrition rates were information technology (23.3%), professional services (24.2%), and financial services (24.8%).</p>
<p>This year, there was a minor decline in voluntary attrition but an increase in involuntary attrition, especially among multinational corporations, which suggests layoffs in the IT and startup industries as a result of global economic shifts.</p>
<p><strong>Patterns of Total Reward</strong></p>
<p>Eighty percent of the organizations emphasized the significance of “pay and benefits” and the need to replace conventional employee perks in the context of the contemporary workforce. The top three areas of concern for companies are assessing and complying with industry standards (20%), employee wellness (29%), and benefit-cost planning (43%).</p>
<p>The most prevalent kind of incentive plans given by the company are variable pay plans (non-sales), which account for 43% of all plans. Discretionary incentives come in second with 32%, while sales incentive plans come in third with 21%.</p>
<p><strong>LTIPs Are Growing More Versatile And Diverse</strong></p>
<p>The paper claims that in recent years, organizations have been ingeniously redesigning their long-term incentive programs (LTIPs). About 26% of businesses focused on long-term incentive plans (LTIPs) for performance rewards in FY23, moving away from cash prizes and toward stock incentives. Additionally, there is a noticeable surge in the use of this incentive component among non-CXO cadres, which is mostly due to India’s rapidly expanding new-age digital business market.</p>

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