The Tech sector in India emerged as one of the top highest-paying sectors in the country, with E-commerce and Start-ups taking the lead with about a 15 percent average hike. This solely applies to annual raises; job switching case raises are omitted. The report also highlights other findings prevalent in the Indian job market. The pay gap between men and women is currently at a staggering 20 percent. Although steps are being taken to counter these, it is still a far-fetched goal. For now, the focus is on increasing the employment numbers for women compared to pay parity.
Projections for 2023 are difficult to gauge till significant traction happens in the coming quarter. However, with inflation coupled with other factors, attrition rates have certainly increased by 20-25 percent, a major jump from last year. Given that offer shopping is the current fad, annual pay rises are significantly less than those obtained by moving industries.
This has led to pay parity being a myth in certain companies/industries/sectors. While the annual hikes stand at 9-12 percent median, the switching hikes are higher than usual, sometimes ranging at 60-70 percent in certain sectors.
In recent months, landing up with a higher-than-average hike has become the standard norm while switching jobs, especially in the tech sector. Though good for employees, it is equally challenging for employers to retain the existing employees when their peers are getting sure-shot switching hikes.
Coupled with unequal pay distribution, rapid tech advancement, a younger workforce, and demand for new job skills, salary hikes are bound to create a long-term impact on the Indian job market. With such a dynamic market, have to wait for the coming quarter’s performance to ascertain future trends of 2023