Expected Pay Hike In 2023

Tech Sector Offered Highest Salaries In 2022; Expected Pay Hike In 2023: Spectrum Report

Expected Pay Hike 2023: Spectrum Talent Management reported that the Tech sector in India emerged as one of the top highest-paying sectors in the country, with E-commerce and Start-ups taking the lead with about 15 per cent average hike. This solely applies to annual raises; job switching case raises are omitted.

The report also highlights other findings prevalent in the Indian job market. The pay gap between men and women is currently at a staggering 20 per cent. Although steps are being taken to counter these, it is still a far-fetched goal. For now, the focus is on increasing the employment numbers for women compared to pay parity. No sector offers equal payroll to men and women; rather depends on the domain roles. While some companies have made the necessary efforts to close the gap, engineering and IT are still working toward equal compensation across industries. Another sector that has been getting close to it is healthcare.

Projections for 2023 are difficult to gauge till significant traction happens in the coming quarter. However, with inflation coupled with other factors, attrition rates have certainly increased by 20-25 per cent, a major jump from last year. Given that offer shopping is the current fad, annual pay rises are significantly less than those obtained by moving industries. This has led to pay parity being a myth in certain companies/industries/sectors. While the annual hikes stand at 9-12 per cent median, the switching hikes are higher than usual, sometimes ranging at 60-70 per cent in certain sectors.

Sharing his insights on the report, Sidharth Agarwal, Director, Spectrum Talent Management said,” In recent months, landing up with a higher than average hike has become the standard norm while switching jobs, especially in the tech sector. Though good for employees, it is equally challenging for employers to retain the existing employees when their peers are getting sure-shot switching hikes. Coupled with unequal pay distribution, rapid tech advancement, a younger workforce, and demand for new job skills, salary hikes are bound to create a long-term impact on the Indian job market. With such a dynamic market, we will have to wait for the coming quarter performance to ascertain future trends of 2023”.

Source: BW Online Bureau, Article was originally published on bwpeople.businessworld.in featuring Spectrum Talent Management.