NEW DELHI: While star performers will attract much more as companies are discernibly prioritising such employees, Salaries are expected to rise by 10 per cent in 2017, says a report.
Salaries in India are projected to rise 10 per cent in 2017, same as the actual increase in 2016, According to the 2016 Salary Budget Planning (Q3) Report released by global advisory.
The projected increase in real terms for 2017 will be 4.3 per cent, down by a fraction from 4.4 per cent in 2016, Once average inflation for India of 5.7 per cent is taken into account.
With tighter salary increase budgets, organisations are prioritising their top performers, The report noted that.
Another 34 per cent is shared by above-average performers while the remaining 28 per cent goes to average performers. The report indicates that in India, 38 per cent of the budget for salary increase goes to top performers. Similar to trends in the Asia Pacific region.
Data Services Practice leader, Sambhav Rakyan, Asia Pacific, at Willis Towers Watson said, “Without such differentiation, companies will face pressure in attracting and retaining talent, especially for in-demand areas, The data clearly shows a greater emphasis on rewarding high performers rather than across-the-board increases for all workers.”
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The report said, “If that pattern continues in 2017, Indian employees could see a single digit salary increase for the first time since 2011.”
India’s 2017 projected salary rise is the highest, When compared to developed and key emerging markets in the region.
Philippines at 6.4 per cent, China at 7 per cent, Sri Lanka at 8.9 per cent and Indonesia at 9 per cent are the other countries that make up the top five in this group.
While the financial sector will likely remain well below average at 8.5 per cent, The pharmaceutical sector continues to project higher salary increases as compared to most other sectors at 11 per cent.
Around 4,000 responses were received from companies across 22 markets in Asia Pacific. The survey was conducted in July 2016. The 2016 Asia Pacific Salary Budget Planning Report is a bi-annual survey compiled by Willis Towers Watson’s Data Services Practice.