The study said that, as of September-October 2020, 87 percent of surveyed companies report they intend to pay out salary increases in 2021.
India Inc is expected to offer an increment of 7.3 percent in 2021, as per Aon Salary Increase Survey.
The study said that as of September-October 2020, 87 percent of surveyed companies report they intend to pay out salary increases in 2021. Of these, 61 percent of these organizations plan to offer increases between 5 percent and 10 percent (projected).
This compares to 71 percent of companies providing increases in 2020, when, of that group, only 45 percent gave increases in the same range.
The study analysed data across 1050 companies from more than 20 industries.
Nitin Sethi, a partner at Aon, and CEO of the firm’s Performance and Rewards Solutions practice in India said that despite the gravity of the COVID-19 pandemic in India and its deep impact on the economy, organizations in India have shown tremendous resilience and a mature view on talent.
"Business and HR leaders made hard decisions in the second and third quarters of 2020 and are now betting on the green shoots of improving consumer demand. They see the need to invest in talent as a critical part of their recovery and growth prospects," he added.
The industries looking to provide the highest salary increases are high technology (Hi Tech), information technology (IT), IT Enabled Services (ITeS), life sciences, e-commerce, chemicals and professional services.
Meanwhile, companies in the hospitality, retail and real estate/infrastructure industries, which had given very low increases in 2020 are projecting a higher increase for 2021, but still trail most other sectors.
The study also said that 2/3rd of the companies either aim to provide similar or higher increments in 2021 compared to the increments offered in 2020. It also said that there will be location-based differential pay among companies.
Navneet Rattan, Director at Aon in India’s Performance and Rewards Solutions practice explained that the impact of COVID-19 has been varied on different sectors and organizations.He added that there are high differentials in salary increases, both intra and inter-industry. Here, the difference between industries with highest increase to lowest increase hits 7.2 percent points as compared to mere 2.4 percent points in 2019.