Salary of Corporate Employees will increase 9.5% in 2024: Report

There is a good news for all the corporate employees in India. Aon, a consulting firm, forecasts a 9.5% average salary increase in India’s corporate sector for 2024. This projection is slightly lower than the 9.7% raise seen in 2023 and marks the smallest increase since 2021.

Factors Influencing Salary Trends:

• Global economic challenges and a decrease in hiring enthusiasm contribute to the moderated salary growth.
• The manufacturing sector is expected to lead in offering significant salary hikes.

Impact of Economic Climate on Salary Growth:

• Anticipated salary growth aligns with strategic adjustments to the changing economic landscape.
• Increased government spending on infrastructure and reduced inflationary pressures are expected to put more money into workers’ pockets.

Sector-Wise Salary Forecasts:

• Manufacturing sector: Projected to offer the most substantial raises at 10.1%.
• Life sciences and financial institutions: Expected to follow with raises at 9.9%.
• Global capability centers: Anticipated to provide raises at 9.8%.
• E-commerce and IT services: Predicted to offer increases at 9.2% and 8.2%, respectively.

Trends in Attrition Rates:

• Attrition rates decreased from 21.4% in 2022 to 18.7% in 2023, suggesting a stabilization in the job market.

Shift in Organizational Focus:

• Leaders are expected to concentrate on fostering a supportive work environment to enhance employee engagement in a dynamic job market.
• Reduced attrition rates allow organizations to invest resources in improving capability and productivity, leading to a positive cycle.