Appraisal Time: Aon Salary Increase Survey projects what pay hike you may get in 2019
A salary increase survey by Aon, one of the leading global professional services firm, has projected that there could be an average 9.7% pay hike across different sectors this year.
Aon Salary Increase Survey 2019: Wondering what pay hike you may get this year? The annual appraisal process has already started or is about to begin in the coming weeks in most of the companies. A salary increase survey by Aon, one of the leading global professional services firm, has projected that there could be an average 9.7% pay hike across different sectors this year. This is a little more than the last year's projection of 9.5%.
The study analysed data across 1000+ companies from more than 20 industries. It found that companies in India gave an average pay increase of 9.5% during 2018 on the back of improved business sentiment compared to the previous year.
For this year, Aon said, "The projections for 2019 are stable yet favourable at 9.7% as companies expect a positive economic outlook backed by high economic growth expectation, high domestic demand and low inflation."
The 9.7% average projected salary hike across companies is still below the pre-demonetisation trends. From 2010 to 2016, there was a double-digit average salary hike at 11.7%, 12.6%, 10.7%, 10.2%, 10.4% and 10.2% respectively for each year. Post demonetisation, in 2017 and 2018, the average salary hike was 9.3% and 9.5% respectively.
However, low average salary hike projections of 2017 and 2018 may not be just because of the government's demonetisation decision of 2016. A decadal comparison chart by Aon shows that average salaries were on a constant decline since 2011. And, it is for the first time in the last seven years, when average salary hike projection has been above the previous year's projection.
When asked about the demonetisation effect on the salary projection for this year, Anandorup Ghose, Partner and Head Emerging Markets, Aon, told Zee Business Online that demonetisation effect is not there. However, salary hike projection is still not in double-digit number.
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“Pay increases are marginally positive compared to earlier years," he added.
The study found that India Inc. has witnessed a positive shift in increment percentages and attrition continues to maintain the downward trend. Attrition has declined from 18.5% in 2013 to 15.8% in 2018.
The study said that in order to manage overall pay budgets, companies are re-looking at their hiring strategy and focusing on hiring key skills which will determine the success of the business over the longer term.
Aon Salary Increase Survey 2019: Chart explaining figures (Source- Aon)
When asked about the possible effect of Lok Sabha elections on salaries this year, Ghose said, “Every election year presents a set of interesting dynamics in how companies plan and execute on budgets. We expect this year to be no different."
"But we are confident that the double-digit pay increase days are well behind us as India Inc. shows maturity in managing economic an political cycles,” he added.
Aon provides a broad range of risk, retirement and health solutions to companies. The Aon's 23rd annual Salary Increase Survey in India was released in New Delhi today.
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