Amid demonitisation, there are speculations on what all sectors will face the heat and how much salary will increase this year. As per the Willis Towers Watson, employees are likely to see a single digit salary increase for the first time since 2011.
Digital sector to see maximum growth
Digitisation was the buzz word for 2016 and will continue its domination in the coming year. An increased demand for product developers and digital marketing professionals can be anticipated in 2017. Additionally, analytics and risk management will also remain a sought after function, though role definitions within the function will evolve basis the needs of the company.
In 2017, there will also be an increase demand for specialised talents with special impetus on upskilling. Specialised skills like Cloud And Distributed Computing, Statistical Analysis And Data Mining, Network And Information Security, Algorithm Design, etc will also see an increase in demand.
Challenging days ahead
In 2016, salaries were projected to rise by 10.8 per cent, but in reality rose just by 10 per cent. This was for the second time, since 2015, that the actual increase was lower than the projected. If that pattern continues in 2017, Indian employees could see a single digit salary increase for the first time since 2011. The year 2016 has been a challenging one for the job market owing to a plethora of developments at global as well as local front.
Salaries in India are projected to rise 10 per cent in 2017 as per the latest Willis Towers Watson Salary Budget Planning report. Going forward, companies will need to put greater emphasis on rewarding high performers rather than across-the-board increases, for all workers.
Social media to play important role in hiring
Active use of social media in hiring is no longer merely a trend but is now becoming an established practice especially for middle to senior level hires. Social media has become important right from employer brand building, to generating a pipeline of candidates by posting requirements in social media channels, to checking candidate’s credentials before finally making an offer.
Employers are using social media to communicate their employer brand to prospective employees. They are also encouraging HR and their employee to post job requirements in their social network so that the job is well-advertised and generate quality candidates. This way companies are also able to leverage social network of their employees.
Millennials to take up senior posts
In start-ups, e-commerce, food tech and hi-technology sectors where skills matter more than experience we see millennials taking up senior roles. Some of these industries have emerged in last three-five years and most of the talent in this sector is also young.
In these industries, the rules of the game are still being defined and hence they are open to young talent getting high level responsibility. Some of the founders of these companies are millennial themselves.
Companies will drive retention by focusing on career development opportunities for employees and providing employees with flexibility depending on their personal situation. For senior level employees, equity-based compensation like ESOP plans are being used to retain critical talent.
ESOPs are effective when it comes to highly value talent and fostering a sense of ownership in employees. New age companies and start-ups are also using innovative benefits to retain talent. For example, employers are providing extended maternity benefits and flexibility to retain female employees.