Significant Salary Increases Expected

Employees in India are set to receive a notable boost in their earnings, with an average salary increase of 9.4% forecasted for 2025. This follows a period of modest growth, with salaries having risen by 8% in 2020.

Driving Forces Behind the Salary Hike

The anticipated salary adjustments are attributed to robust economic growth and a high demand for skilled professionals. The automotive sector is leading the charge, expecting a 10% rise, spurred by the electric vehicle boom and the 'Make in India' initiative.

Workforce Expansion and Attrition Rates

With 37% of organizations planning to expand their workforce, the demand for talent is on the rise. However, voluntary attrition is expected to stabilize at 11.9%, with certain sectors experiencing higher rates.

Strategies for Talent Retention

To meet workforce demands and sustain growth, companies are focusing on strategic recruitment, competitive compensation, upskilling, and employee engagement. Mercer's India careers leader, Mansee Singhal, emphasizes the importance of adapting to these trends to attract and retain talent in a competitive market.