Source | www.hrkatha.com | HRK News Bureau
Salaries of professionals in India are expected to increase by an average of 6.4 per cent in 2021, as per a survey.
The Salary Budget Planning Survey report by Willis Towers Watson reveals that projected increments in 2021 will be marginally higher than the average actual increase last year, when it was 5.9 per cent.
Of the companies surveyed across India, 37per cent project a positive business revenue outlook for the next year, which is higher than the 18 per cent in Q3 2020. But hiring does not seem to be keeping up. Only about 10 per cent of the companies intend to hire, whereas 14 per cent planned to hire in the last quarter.
About 20.6 per cent of increments budgeted for are being given to top performers, who make up 10.3 per cent of the employees in the country. In other words, for every rupee set aside of an average performer, Rs 2.35 is allocated to a top performer and Rs 1.25 to an above average performer.
Rajul Mathur, consulting head – talent & rewards, Willis Towers Watson India, points out that there is definitely “an increased optimism on business recovery, but it is yet to translate into the salary increment budget.” Companies will tend to prioritise allocation towards protecting critical and high-skilled talent. In 2021, we there will continue to be more emphasis on “pay for performance and pay linked to business output.”