2020 was a bad year for salaried folks, with even global professional services firm AON conceding India Inc offered the lowest ever salary increment in at least 15 years. But, 2021 might just be different!
AON’s survey of 1050 organisations in over 20 sectors forecasts an average 7.3% salary increment in 2021, and its how companies are planning budgets for the next year. This is according to a survey titled “Salary Trends Survey 2020-2021”. In 2020, the average salary hike was 6.1%, and even lower than in the aftermath of the 2008 great financial crisis.
It should be pointed out that all this for a non-equity increment. Also, AON India CEO Nitin Sethi says this report captures that companies are planning genuine increments, and not disguising the restoration of salary cuts as increments.
He also said companies have not changed compensation structure on account of Work From Home. They have instead provided employees with internet services and in some cases ergonomic furniture.
The sectors that may give the highest salary increases in 2021 according to AON are hi-tech, Information Technology, IT Enabled Services, life sciences, e-commerce, chemicals and professional services.
As expected—and one of Covid-19’s biggest victims—aviation and hospitality will offer the lowest salary hikes.
Nearly 87% of the surveyed companies are planning to dole out salary hikes next year. Around 61% of the companies are considering an increment of 5-10%. In 2020, 71% of the companies offered a pay hike, and out of that, 46% of the companies gave a 5-10% raise.
Are companies back in the hiring mode? Has the “side hustle” become a big trend among employees? Are startups looking at giving raises only by increasing the allocation of ESOPs? Here is ET Now’s Nayantara Rai in conservation with AON’s India CEO, Nitin Sethi.
