Indian techies to get 10% salary hike in 2024, says survey

Indian techies can expect a 10% average salary increase in 2024, according to a survey by consultancy firm Mercer. The survey reveals that the Indian IT industry is witnessing a strong demand for skilled talent, driven by digital transformation and innovation. The survey also highlights the factors that influence salary increments, such as individual performance, organization performance, and position in the salary range.

Survey methodology and key findings

The survey, titled “India Total Remuneration Survey 2023-24”, gathered data from 1,474 companies across various sectors and regions in India, covering over 6,000 job roles and 2.1 million employees. The survey was conducted between May and August 2023, and projected the salary trends for 2024.

The survey found that the average salary increase for the IT sector in India is expected to be 10% in 2024, which is higher than the 9.8% average for all sectors. The survey also found that the IT sector has the lowest attrition rate of 11.9%, compared to the overall average of 13.5%.

The survey identified the top three factors that determine salary increments as:

• Individual performance: The survey found that high performers can expect a 1.7 times higher salary increase than average performers, and 2.5 times higher than low performers.
• Organization performance: The survey found that companies that performed well in terms of revenue and profit growth can offer higher salary increments than those that did not.
• Position in the salary range: The survey found that employees who are paid below the market median can expect higher salary increments than those who are paid above the market median.

IT sector outlook and challenges

The survey also revealed the outlook and challenges for the IT sector in India, which is one of the fastest-growing and largest sectors in the country, contributing to 8% of the GDP and employing over 4.5 million people.

The survey indicated that the IT sector is witnessing a strong demand for skilled talent, especially in emerging areas such as artificial intelligence, cloud computing, cybersecurity, and data analytics. The survey also indicated that the IT sector is investing in upskilling and reskilling its workforce, as well as offering attractive benefits and incentives to retain and attract talent.

However, the survey also pointed out some challenges that the IT sector faces, such as:

• Global economic uncertainty: The survey noted that the IT sector is exposed to the risks and opportunities of the global economy, which is facing various headwinds, such as inflation, trade tensions, and geopolitical issues.
• Talent shortage and competition: The survey noted that the IT sector is facing a talent shortage and competition from other sectors and countries, which can affect its ability to deliver quality services and solutions to its clients.
• Employee expectations and engagement: The survey noted that the IT sector needs to address the changing expectations and preferences of its employees, who are looking for more flexibility, autonomy, and recognition in their work.

Expert comments and recommendations

Mansee Singhal, Rewards Consulting Leader for Mercer in India, commented on the survey results, saying that the IT sector is showing confidence and optimism in the Indian market, which is reflected in its salary projections. She also said that the IT sector is leading the way in terms of innovation and digitalization, which requires talented and agile individuals to drive growth and value.

Singhal also offered some recommendations for the IT sector to overcome its challenges and sustain its competitive edge, such as:

• Adopting a holistic and strategic approach to rewards: Singhal suggested that the IT sector should design and implement a comprehensive and differentiated rewards strategy, which aligns with its business goals and employee needs. She also suggested that the IT sector should leverage data and analytics to measure and optimize its rewards outcomes and impact.
• Fostering a culture of learning and development: Singhal suggested that the IT sector should create and nurture a culture of learning and development, which enables its employees to acquire and enhance their skills and competencies. She also suggested that the IT sector should provide diverse and personalized learning opportunities and platforms for its employees, such as online courses, mentorship programs, and hackathons.
• Enhancing employee experience and engagement: Singhal suggested that the IT sector should enhance its employee experience and engagement, which influences its employee retention and attraction. She also suggested that the IT sector should adopt a human-centric and empathetic approach to employee experience, which considers the physical, emotional, and social aspects of work.