Companies not opting for aggressive pay increases

Companies across industries are continuing to take a cautious stance and are not going for aggressive pay increases, according to the 20th edition of the annual Salary Increase Survey in India conducted by Aon Hewitt, the global talent, retirement and health solutions business of Aon plc.

The results of the survey that analysed data across 700 companies reflect a pragmatic approach adopted by corporate India towards pay increases. In many cases, the industries have taken a marginal dip in their overall budgets as compared to 2015 actual spends.

Sectors such as life sciences, media and consumer products are projecting a higher increase than the market average. The "early stage companies/start-ups" stand out despite being in the pre-profit stage for over three years and continue to have an aggressive stand on pay.

At 15.6 per cent salary increase projected for 2016, they feature on top, with the closest being life sciences at 11.6 per cent. Investment in key talent has emerged as a major trend and that the attrition rate, at 16.3 per cent, is at its lowest in five years, the survey said.