Wednesday, December 25, 2024

India Inc likely to roll out 9.5% increment

Tuesday, February 28, 2023, 18:23
This news item was posted in Business category and has 0 Comments so far.

Organisations across the board in the country are set to continue with pre-pandemic level increments in the range of 9-9.5% this year, finds a new survey.After having grappled with the impact of the pandemic, cost deferrals and reduction measures to ensure business continuity, most companies last year reverted to pre-pandemic levels of investment in rewards and incentives after a dip in 2020. This trend is set to continue this year amid cautious optimism, says the Mercer Total Remuneration Survey. Industries like manufacturing, consumer and retail, chemicals, and auto have reverted to pre-pandemic increment levels, according to the survey, which was conducted across 1,300 companies, covering 1.7 million cumulative employee strength.98316408Disruptions in global supply chains and the launch of the ‘Make in India’ programme by the government have given a fillip to the manufacturing sector, while growth in India’s consumer market, primarily driven by a favourable population composition and increasing disposable income, as well as the emergence of ecommerce, have augmented the retail sector. Further, India’s strong position in exports and imports of chemicals at a global level will lead to growth of the chemicals industry. Salary increases in sectors such as technology, healthcare, services, and global capability centres are also better than expected, buoyed by the accelerated shift towards digitalisation, increased demand for healthcare products and services and subsequent emergence of medical tourism, India’s large talent pool and relative cost advantages in light of global geopolitical shifts. Some sectors like ecommerce, however, have decreased forecast to 7-8% in line with organisational performance and sustenance pressure. “With global inflation and recessionary headwinds, India Inc, while being broadly insulated, is experiencing layoffs in select sectors,” said Mansee Singhal, senior principal, rewards consulting leader India, at Mercer. “So, it is time for cautious optimism, accelerated domain and performance-based differentiation and reviewing of benefits for maximising returns on investments,” she said.

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