Here’s Why You May Get A Lower Salary Hike This Year
Following the unprecedented rally in increments last year, the job market has let it settle down, says TeamLease in a report.
India Inc. may offer a double-digit salary hike this year even as salary growth and job creation have turned modest this year, according to TeamLease.
But the median salary hike this year, the staffing solutions firm said in a report, is expected to be around 10.9 percent from last year’s 11.4 percent.
“Consolidation is an inevitable consequence of heady growth,” TeamLease’s Co-Founder and Executive Vice President Rituparna Chakraborty was quoted as saying in the report. Following the unprecedented rally in increments last year, the job market has let it settle down, she said.
Salaries rose by a minimum of 10 percent and a maximum of 11 percent in eight out of 17 employment sectors in six of the nine cities surveyed in 2019. That compares with last year’s maximum salary hike of 15 percent.
The analytics-based approach to determining pay has got more pervasive, according to Chakraborty. “Employers are doubling down on rewarding sought-after skills and hot jobs,” she said. “Median salaries and increments aren’t looking as good though.” The job market, she said, has “tightened its belt on mediocrity” and is putting its money where the jobs and skills of tomorrow are.
Sectors With Highest Pay Hikes
Salaries grew by over 10 percent in sectors like banking, financial services and insurance; information technology-enabled services; e-commerce and technology startups this year. That also comprises companies from educational services, fast-moving consumer durables, fast-moving consumer goods, healthcare, pharmaceutical and IT sectors.
On the other hand, salaries to employees in agriculture and agrochemicals, construction and real estate, media and entertainment, and retail and communication sectors grew by less than 10 percent, the report said.
Nearly 14 of the 17 sectors created “hot and upcoming” jobs this year, with agriculture analyst, information security analyst and blockchain developer being some of the most sought-after jobs, the report said. Last year, only seven sectors created hot jobs.
The highest salary increment this year was a 17 percent hike to chief technology officer roles at e-commerce and tech startups in Mumbai, which was also among top roles listed by the report. That’s a slight fall from the 18.16 percent increment to certified ethical hackers.
Job profiles with pay hikes of 15 percent were mostly based in Mumbai and Bengaluru. They include:
- Design engineer (UniGraphics) in the automobile sector.
- Chief planning officer in the construction segment.
- Embedded technologies engineer in the power and energy business.
- IT engineer/project manager/IT/software in the health and pharmaceuticals business.
The report also said the most popular blue-collar worker roles were air-conditioner mechanic, delivery personnel, forklift operator and pantry staffer.