Corporate salary hike in India set to average 9 pc in 2024: Deloitte report

Deloitte India's latest survey forecasts an average salary increase of 9 per cent for corporate executives in India in 2024, slightly lower than the 9.2 per cent projected in the lastyear.

Despite this marginal dip, the projections suggest a positive trend compared to pre-Covid levels across most sectors, barring IT (Information Technology) and BPOs (Business Process Outsourcing).

Deloitte India's report, titled 'Deloitte India Talent Outlook 2024,' indicates that junior management personnel might witness double-digit increments, reflecting a continued emphasis on performance-based remuneration.

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However, the report also highlights a potential challenge for top performers, with companies expected to be more stringent with their bell curves, potentially making it harder to secure top ratings.

Anandorup Ghose, Partner and CHRO Programme Leader at Deloitte India, highlighted the importance of performance management strategies amid a backdrop of controlled attrition and core inflation.

"With attrition and core inflation in check, organisations focus more on performance management strategies to protect and boost margins," Ghose said.

While the overall average increment is anticipated to dip slightly, one in every three organisations plans to offer double-digit increments in 2024, the report indicated.

Furthermore, the survey predicts a downward trend in promotions, with only 11.5 per cent of employees expected to be promoted, down from 12.3 per cent in the previous year.

Regarding bonuses, the Deloitte survey suggests a positive outlook, with a potential for one out of every two companies to offer at-target or above-target bonuses in 2024.

This optimism is fuelled by a reduction in attrition rates, which fell to 18.1 per cent in 2023 from 20.2 per cent in 2022, largely due to a slower hiring pace.

Deloitte's report brings out the changing landscape of learning and development within organisations.

It notes a shift towards a more scientific approach to upskilling the workforce, with the adoption of common skills frameworks to identify talent gaps.

Despite this, the report highlights a challenge in updating these frameworks regularly to align with evolving business needs, indicating a gap between strategy and execution in many organisations.

While most CXOs (Chief Experience Officers) have improved visibility of skill demand and supply across job roles, only 30 per cent of companies track and maintain this data, a modest increase from 19 per cent in the previous year.

Additionally, there's a noted prioritisation of usage and cost efficiency over directly linking learning interventions to financial improvements, suggesting a potential area for further refinement in talent development strategies.