Deloitte India's latest report predicts a 9% salary increase for corporate executives in 2024. The report, titled 'Deloitte India Talent Outlook 2024', foresees increments better than pre-Covid levels across sectors, except for IT and BPOs. This projection is slightly lower than the 9.2% predicted in 2023.
The report says that companies are likely to provide substantial increments to junior management, although they may enforce stricter performance evaluations, making it more challenging to get top ratings.
Increments
According to the Deloitte India salary report, top performers can expect increments 1.8 times higher than those given to average-rated employees. However, employees rated below average may get an increment projected at 0.4 times this year compared to 0.6 times in 2023.
Bonuses
The report suggests that approximately half of the companies may offer at-target or above-target bonuses in 2024. Organizations are also expected to maintain a 7.5% increment for promotions to retain talent.
Promotions
The percentage of employees projected to get promotions went down from 12.3% in 2023, as per the report.
Attrition rate
The Deloitte report notes a drop in the attrition rate from 20.2% in 2022 to 18.1% in 2023, due to a slower hiring pace. Anandorup Ghose, partner and CHRO Programme Leader at Deloitte India, said that this was due to the shift towards performance management strategies to safeguard and enhance margins in light 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,” he said. Globally, India continues to exhibit significant economic growth, potentially leading to higher increments than other regions.
The report says that companies focus on improving employee skills by identifying talent gaps using a common skills framework, although some struggle to update it regularly. While CXOs have better insight into skill demand and supply, only 30% of companies track this information. Most prioritise efficient learning over directly linking it to financial gains.