More hiring, better salary hikes: Here is what private sector employees can expect

Covid pandemic hit all sectors and there were reports of job cuts and salary cuts as businesses across verticals have witnessed extensive disruptions. However, as the country’s economy is on a path to recovery, hiring activity is likely to get a boost and employees in the private sector can expect better salary increases.

In an exclusive chat with IndiaToday,In, Yogita Tulsiani, MD CO-Founder at iXceed Solutions, lists out what private sector employees can expect this year.

In the past two years, almost every industry has been hit hard due to the ongoing pandemic. From an HR perspective, salary hikes have been limited. How would you react to this?

The harmful impacts of the Covid-19 epidemic on work and professions have been widely established, in my opinion. Not only that, but millions of professionals have had their incomes cut and many have lost their positions totally, with roughly 4 million jobs already gone for good in various areas of the world.

However, it would be incorrect to conclude that the worldwide response to the epidemic has been entirely negative for working professionals, according to me. The ‘new normal,’ in my opinion, has helped firms to identify development possibilities and accelerate digitalization. Not only that, but both Generation Z and millennials are enthusiastic about how forward-thinking organisations are emphasising cutting-edge technologies and promoting digital cooperation.

In the pre-covid era, 2019, the increment was around 9.25 percent, while in 2021, it was around 8.4 percent. As per industry standards, what is the percentage we can expect in the financial year 2022-23?

Companies are vying against one another to recruit and hire the greatest personnel, in my opinion, and the job market has experienced a remarkable resurgence. Not only that, but rising attrition, a severe talent shortage, and a scarcity of in-demand talents are all pushing pay up. But, in the case of high-performing individuals/employees with specific abilities, I believe that wage increases of up to 25 per cent are possible.

Since, companies are back to pre-Covid increment levels. Which sector is likely to see the maximum hike?

In my opinion, India has already entered the new-age period of electric cars (EV). With new production centers and an increasing drive to improve charging infrastructure, as well as the government’s assistance through the PLI for building up local battery manufacturers, big investments are coming up. Apart from electric vehicles, I believe IT will do well because the need for digitalization from businesses that want to survive and grow will continue to rise.

Attrition has been an issue and how will this impact salary hikes?

According to me, one out of every three companies is expecting a double-digit pay hike as the average rate converges to 9 per cent. In fact, the disruption in skill supply has driven salary rises in India far beyond those in other emerging economies, and businesses are offering greater flexibility in working circumstances – including hybrid or work from home – in an effort to retain employees.

Apart from this, companies have increased their efforts to retain employees, and the strain on payrolls has spread to industries that saw demand collapse during the initial wave of lockdowns.

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