[ad_1]
The average salary increment in India for the year 2024 is expected to be around 9%, slightly lower than the previous year’s 9.2%, according to a survey by Deloitte. The survey, titled Deloitte India Talent Outlook 2024, indicates that one in every three organisations in the country plans to provide double-digit increments this year.
Despite the marginal decrease in the overall average increment compared to last year, the projection for 2024 surpasses pre-Covid levels across all sectors except for IT and business process outsourcing (BPO)/knowledge process outsourcing (KPO). The survey predicts that junior management employees are likely to receive double-digit increments, with a strong emphasis on performance-based differentiation.
According to the report, organisations are expected to implement stricter bell curves, making it more challenging to secure top ratings. However, top performers can anticipate increments that are 1.8 times higher than those given to employees with “average” ratings. On the other hand, employees rated as “below average” are anticipated to receive lower increments compared to last year.
The survey also indicates a slight decrease in the percentage of employees expected to be promoted in 2024, down to 11.5% from 12.3% in 2023. However, organizations are likely to maintain a 7.5% increment for promotions in order to retain key talent.
Performance bonuses
Regarding performance bonuses, approximately one out of every two companies may provide at-target or above-target bonuses in 2024. In 2023, the attrition rate had decreased to 18.1% from 20.2% in 2022 due to a slower hiring momentum.
The report said that employees in India have become accustomed to single-digit increments in recent years and with attrition and core inflation under control, organizations are focusing more on performance management strategies to protect and enhance margins. Ghose also noted that India continues to be the fastest-growing major economy globally and could witness the highest increment compared to other geographies.
In terms of learning and development, organisations are increasingly adopting a scientific approach to upskilling their workforce using a common skills framework to identify talent capability gaps. However, the report indicates that while three in every four organisations have a skills framework, a significant portion struggles to update it regularly to align with evolving business needs.
Despite better visibility of skill demand and supply across jobs by CXOs, only 30% of companies track and maintain this information compared to 19% in 2023. The report said that while most organisations prioritise usage and cost efficiency, they do not always directly link learning interventions to financial improvement.
[ad_2]
Source link
