Manufacturing firms likely to lead pay hikes in 2024: AON India survey

AON India, in a survey on Wednesday, projected a 9.5 per cent increase in salary in the Indian market for 2024. The number reflects a slight dip from the actual 9.7 per cent salary hike of 2023. The survey also revealed a decline in attrition rates, dropping from 21.4 per cent in 2022 to 18.7 per cent in 2023

The survey unveiled these findings during its 30th Annual Salary Increase & Turnover Study 2023-2024, presented via a virtual press conference. It analysed data from 1,414 companies across nearly 45 industries. Underscoring a "strategic adjustment in response to the evolving economic landscape", the survey revealed that salaries in India are expected to increase by 9.5 per cent in 2024, in contrast to the 9.7 per cent salary increase of 2023.

According to the projections by AON, the manufacturing sector could lead the hike with 10.1 per cent, followed by life sciences, and financial institutions with a 9.9 per cent hike each.

Partner and Chief Commercial Officer for Talent Solutions at Aon India, Roopank Chaudhary, commented on the findings, stating, "Despite a conservative global sentiment, industries such as infrastructure and manufacturing continue to project robust growth, indicating the need for targeted investments in certain sectors."

The dip in attrition trend suggests the undertones of a competitive job market where turnover rates may have peaked, allowing organisations to redirect their resources toward enhancing productivity and capability.

"In 2023, organisations navigated a challenging environment, balancing a generous average salary increment amidst high attrition rates. As leaders prepare for 2024, their focus is likely to shift towards building a supportive work environment to foster employee engagement in a dynamic job market," stated Jang Bahadur Singh, Director for Talent Solutions at Aon India, during the press conference.