In 2019, pay raise is likely to average around 10% as firms grapple with limited talent pool and faster market growth
The job market is set to bring some cheer for professionals across domains and job profiles if multiple salary reports released recently are any indication.
Human resource (HR) experts say pay hikes will average 10% this year, with the Willis Towers Watson Survey supporting the same. It states that while executive level hikes will be around 9.8%, the middle-management will get a slightly higher increment.
And for professionals looking to jump jobs within similar industries, the salary prospects are even better. As per the India Salary Benchmark 2019 report by global professional recruitment consultancy Michael Page, an average 20-25% increase in pay could be witnessed when changing jobs for the same function.
"This year should be good in terms of hikes. The battle for talent is heating up and companies will do it all to retain their top performers and skilled professionals. The market is evolving and encouraging towards people who are productive," says Kris Lakshmikanth, founder chairman, The Head Hunters India.
But adjusted against inflation, the 10% pay raise in India is likely to be around 5%, says a forecast by global consulting firm Korn Ferry. Even then, this 5% appears more than what professionals in China or Japan will get. Korn Ferry notes that inflation-adjusted real-time hikes in China will be 3.2% and a mere 0.1% in Japan.
Multiple factors have contributed to the optimism in the salary predictions. A crucial one being the movement of talent. Nicolas Dumoulin, managing director at Michael Page India, observes, "Movement among senior level professionals can be attributed to the growth of India's industries and the availability of talent. This explains the key employment activity within the mid and large manufacturing organisations specialising in chemicals, building materials as well as domestic consumer companies." Dumoulin says the entry of new funds within the private equity sector has also led to senior-level hiring. "Furthermore, the rise of India's e-commerce and fintech businesses has increased opportunities for senior talent to move in from established industries such as the fast moving consumer goods (FMCG) and banking spaces."
Experts say there will be an increased demand for talent across sectors, including in HR, legal and finance and in technology.
"India has a strong pool of senior leaders on par with business standards in developed markets. However, due to the increased pace of market growth, this has given rise to an acute shortage of available talent. The limited candidate pool has driven up the cost for talent, especially senior-level talent, over the years," says Dumoulin.
Experts, however, insist that irrespective of the estimated hikes, market dynamics mandate professionals to adapt to agile learning and upskilling in order to remain relevant to the changing job requirements. Proficiency in artificial intelligence (AI), machine learning (ML), blockchain, analytics, big data and automation is said to fetch professionals hikes upwards of 20-30%, says Lakshmikanth, "as companies will work hard to retain this niche talent."
There is not enough talent to meet the rapidly growing skills demand arising from the business landscape, especially when it comes to digital skills such as AI, ML, etc, says Amardeep Vishwakarna, chief technology officer, Shine.com.
There are currently over 80, 000 jobs in data science and ML that are lying vacant in India, says a study by Analytics India. AI, data science and ML specialists with five to eight years' experience can earn Rs 20–50 lakh per annum, which is much more than pure-play software jobs.
"While India's rapid pace of technological adoption makes any market-specific predictions extremely unreliable, it is certain that technologies like AI and automation will create more and better job opportunities for professionals. We can expect professionals in the mid-level to undertake large-scale upskilling through online learning platforms," says Vishwakarna.
HANDSOME RAISE
- 20-25% – Average increase in pay professionals looking to jump jobs within similar industries may get
- There are currently over 80, 000 jobs in data science and ML that are lying vacant in India
- Adjusted against inflation, the 10% pay raise in India is likely to be around 5%
- Inflation-adjusted real-time hikes in China will be 3.2% and a mere 0.1% in Japan
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