Salaries In India To Surge In 2024:Aon | NDTV Profit
Salaries in India are expected to increase by 9.5% in 2024, according to global professional services firm #Aon.
Watch Tamanna Inamdar in conversation with Aon India's Roopank Chaudhury.
Read: https://bit.ly/3wqFpOt
Watch Tamanna Inamdar in conversation with Aon India's Roopank Chaudhury.
Read: https://bit.ly/3wqFpOt
Transcript
00:00 The number has dipped a little from last year,
00:03 but if you go back a year before, in 2022,
00:06 the number was more than 10%.
00:09 When we had seen a double digit,
00:11 it dropped to 9.7 last year and dropped further this year.
00:15 I think there are a couple of reasons
00:17 why we are seeing this marginality.
00:19 The business sentiment has been in some sectors
00:23 and these are largely some of the services sectors,
00:26 largely driven by technology, IT, IT consulting services,
00:30 and that's a large chunk of the workforce.
00:33 And when the salary increases had also gone up
00:35 or high in the last two years,
00:37 it was largely driven by the tech sector as well.
00:40 So it's quite obvious that when the tech sector
00:42 is seeing a recessionary events and is on the vein,
00:46 we have also seen the business sentiment come down
00:48 and as a result, the salary increments
00:50 also have been coming down.
00:52 Some of the other services sectors
00:54 also continue to show a slight downward projection.
00:58 If you look at retail, if you look at e-commerce,
01:02 they're also talking about a slight lower number
01:05 than last year.
01:06 On the other hand, poor sectors,
01:10 more traditional sectors like manufacturing,
01:12 engineering, FMCG, FMCD, life sciences,
01:17 auto chemicals, they've either maintained
01:22 the salary increase that we had seen last year
01:24 or in some cases even gone higher up.
01:26 This largely being driven by the business sentiment
01:28 in these core sectors, the business growth,
01:31 and also the focus on domestic consumption and spending.
01:34 So there is clearly coming out to be a divide
01:37 between some globally impacted services sectors,
01:41 which are projecting downwards,
01:43 and some of the locally facing manufacturing sectors,
01:46 which are hiring, which are doing well,
01:49 which have a better business sentiment
01:50 and are also looking at a salary projection upwards.
01:53 Yes, I think for the next two quarters,
01:56 I think companies are adopting a wait and watch approach.
01:59 I think they are not going all out.
02:02 And also I think they're also,
02:03 we are having a sectoral split,
02:04 as I mentioned in some of the services sectors,
02:08 we are seeing some bit of a wait and watch approach,
02:11 but then some sectors in services like hospitality,
02:15 which was struggling during COVID are doing really well.
02:17 They are hiring restaurants, USR, even retail.
02:20 There is enough attrition and enough hiring going across
02:23 in these particular sectors,
02:24 engineering and manufacturing core sectors
02:27 are hiring as well,
02:28 and for large important critical roles
02:31 within the technology, IT consulting space.
02:33 I think for the next two quarters,
02:35 we are going to see some bit of cooling down
02:39 and possibly after maybe a couple of quarters,
02:41 we will start to see hiring pick up again.
02:43 (upbeat music)
02:46 (upbeat music)