Hiring and Salary Hikes Trends in India for 2021, Report
According to a Michael Page report, after a pandemic-scarred 2020 that saw job losses, salary cuts, there is good news for employees. Nearly 53% of Indian companies are intending to hire, as compared to 42% APAC (Asian-Pacific countries) businesses. And 60% of employers intend to raise salaries while 55% of the companies plan to give out bonus payments.
- Technology and healthcare will lead job creation in 2021 while internet-based, e-commerce and edu-tech ventures may also ramp up recruitment in India.
- As much as 53% of firms are planning to increase headcount this year of which 74% are technology firms that are expecting to increase headcount by 14%.
- About 68% of e-commerce firms in India expect a 12% increase in headcount, and 44% of property and construction companies expect headcount to increase by 10% in 2021.
Some of the roles that are seeing high demand include engineering and data scientists, growth hackers, performance marketers, sales and business development, research and development, and legal counsel, the report says. Leadership hiring in private equity, venture capital and other asset classes is also showing an upward swing.
“The government’s focus on ‘Aatmanirbhar Bharat’ or ‘Self-Reliant India Mission’, and its objective to roll out more conducive guidelines for API manufacturers will set the stage for this industry’s growth in 2021 through to 2025. This will lead to rapid creation of new job opportunities, thus increasing recruitment activities within the sector.”
According to report, 60% of employers intend to raise salaries while 55% of the companies plan to give out bonus payments.
- The Healthcare sector may see the largest percentage rise in salary at an average increase of 8%, followed by FMCG (7.6%) and e-commerce/internet services (7.5%).
- Banking and financial services will be next, with annual hikes averaging 6.8%.
- The lowest salary increase will be in property and construction (5.3%) and industrial and manufacturing (5.9%) this year. Banking and financial services (60%) and transport & distribution companies (60%) lead businesses that are looking to offer one-month bonuses. One in three companies expects promotions, especially for mid-management employees (79%), to be postponed this year.
- Professional services and retail can expect raises between 6% and 7% in the year 2021.
- 60% of employers intend to raise salaries while 55% of the companies plan to give out bonus payments. Overall, employees expect 19-20% increase from their current/ last-drawn salaries across hierarchies.
Nupur Mehta, Associate Director of Michael Page India, says, “During the pandemic, we saw a significant spike in hiring within vaccine companies. We expect continued volume of hiring activities within the segment as well as further training and nurturing to retain high-potential talent. The healthcare sector is poised to witness significant growth across segments especially, pharmaceuticals and diagnostics. ”
Michael Page global survey has covered 660 employers and 4,600 professionals in India.