As the economy embarks on a path to recovery following a sharp downturn in the previous year due to the pandemic, a recent study has indicated that 59 percent of companies in India plan to provide salary increases to their employees in 2021. According to Genius Consultants’ “10th Hiring, Attrition, and Compensation Trend 2021-22,” this promising growth trend is expected to stabilize the market, prompting companies to reassess their business continuity strategies while bolstering their workforce.
This year’s outlook for salary increments appears positive, with 59 percent of companies indicating that pay raises are on the horizon, ranging from 5-10 percent. Meanwhile, 20 percent anticipate increments of less than 5 percent, and approximately 21 percent foresee no salary increases in 2021, as revealed by the study.
Conducted online among 1,200 companies across various sectors, including banking and finance, construction, education, FMCG, hospitality, IT, logistics, manufacturing, media, pharma, retail, telecom, and automotive, the nationwide study also disclosed that around 43 percent of respondents have reported job openings, while 41 percent are considering replacement hiring. Nevertheless, 11 percent of respondents express pessimism about fresh recruitment prospects.
The study further highlights regional variations, with the southern market expected to lead in terms of new job opportunities at 37 percent, followed closely by the western zone at 33 percent. Companies are contemplating workforce augmentation, with 21 percent aiming to expand their teams by more than 15 percent and another 26 percent planning to add 10-15 percent new employees. However, 30 percent of respondents foresee a modest 10 percent increase in employee strength, while 23 percent anticipate no hiring activity.
In contrast, only 4 percent of respondents foresee layoffs in 2021. The study suggests that junior-level employees may be more vulnerable to attrition compared to middle and senior management, with the western zone experiencing the highest attrition rate this year.
Although many organizations have adopted flexible working models such as work from home, remote work, or hybrid arrangements, questions about employee productivity persist. The study found that 33 percent of respondents observed no change in productivity or commitment when transitioning to new working styles, while 37 percent noted fluctuations in productivity.
Regarding hiring preferences, organizations intend to focus primarily on mid-level candidates, followed by individuals with less experience and freshers. The workforce is anticipated to consist of approximately 51 percent women and 54 percent men, respectively, according to the study.
R.P. Yadav, Chairman and Managing Director of Genius Consultants, commented on India Inc.’s swift recovery and optimistic hiring outlook for 2021. He emphasized that businesses are strategically planning their operations, considering market demand, compensation packages, and cost sustainability. He also noted that government support and favorable policies for the private sector are expected to contribute to growth.
Yadav added that as economic activities resumed, various industries, including banking, NBFC, consumer products, manufacturing, infrastructure, housing, hospitality, service, tourism, pharmaceuticals, and e-commerce, were on track to regain their pre-pandemic levels.
