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Salaries To Rise 10% This Year As Companies Hunt For Talent, Says Mercer

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Salaries in India are expected to grow by 10 percent across industries as more companies plan to hire this year, says a Mercer report.

That’s consistent with 2016 and 2017, according to Mercer’s 2017 India Total Remuneration Survey. The survey of 791 organisations across sectors found that 55 percent intend to hire in the next 12 months as against 48 percent last year.

"The Indian industry continues to project low double-digit increases, driven by a combination of optimistic economic environment and scarcity of the right talent." - Shanthi Naresh, India Business Leader (Talent Consulting & Information Solutions), Mercer

One in two companies are planning to increase headcount, with shared services and hi-tech leading the pack, similar to what was seen in the past two years, the survey said.

“In the shared services sector, there is an influx of captive organisations across retail, fast-moving consumer goods, manufacturing and pharmaceuticals. Newer roles are emerging in supply-chain planning, analytics, demand planning, computer imagery, store design, merchandising,” Naresh said. “With the evolution in value chain of work and the advent of such transformational roles, companies are looking at increasing headcount.”

Attrition is expected to marginally decline from last year by 1.8 percent to 11.5 per cent.

“From retention standpoint, R&D and sales professionals across levels continue to challenge organisations, while from a hiring standpoint organisations find it hard to attract engineering and sales professionals,” the report said.

India is caught between a widening skill gap and a higher education sector struggling to keep up, Dilpreet Singh, vice president and human resources head at IBM India, said. “The emergence of a new set of jobs known as the ‘new collar jobs’ – jobs that combine technical skills in areas such as cloud, cognitive, security, data science, etc. will require a deep knowledge base rooted in higher education.”

Also Read: India To See 10% Salary Hike In 2018, Highest In Asia Pacific

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