Keys to getting compensation right in the Indian market

Findings from the Salary Budget Planning Report and Getting Compensation Right Survey

November 27, 2018
| India

India continues to show high salary increments compared to other countries in the Asia Pacific region and this can be attributed to the steady economic growth, progressive reforms and cautious optimism across sectors.

Trends such as workplace automation, artificial intelligence and robotics are expected to reshape a new combination of work, talent, skills requirements and work relationships. This is leading organisations to re-examine not just their talent strategies but also how they will remunerate and reward the workforce of the future.

In today’s rapidly evolving work ecosystem, compensation programmes must meet a growing range of often conflicting objectives from market competitiveness to pay fairness, resulting in a complex decision-making process that requires greater use of technology.

This and other findings from our Salary Budget Planning report and Getting Compensation Right survey reveal the scope of the task confronting employers as they attempt to optimise their limited compensation budgets and communicate the results in a highly dynamic global work environment.

Getting Compensation Right survey findings examine five elements critical to developing relevant, high-impact compensation programmes:

Icon: base pay (banded stack of currency) Icon: incentives (gift box) Icon: technology (processor) Icon: fair pay (man and woman) Icon: pay transparency (banded stack of currency)
Define the role of base pay. Improve differentiation of incentives. Make effective use of technology. Prioritize fair pay. Build a culture of pay transparency.

Key Findings from the Salary Budget Planning Report:

  • The India average salary increase is expected to remain on a steady path. The projected salary budget increase for 2019 remains at par as that of 2018 at 10%
  • While the average actual voluntary attrition rate in India is at 14.5%, about two-thirds of surveyed organisations plan to maintain headcount in the next 12 months
  • Technical functions such as Engineering, Technical skills, IT remain the most critical functions for recruitment

Key Findings from the Getting Compensation Right Survey:

  • Indian companies heavily depend on Base Pay programmes to drive performance and differentiation compared to their global counterparts
  • About half (48%) of the organisations are planning or considering changes to the design of their annual incentive plans
  • 42% of the companies intend to conduct a gender pay or pay equity diagnostic, in an effort to prioritise fair pay
  • Increasing adoption of new technology to support implementation of compensation programmes in India shows a greater willingness to tackle challenges on pay programme development and delivery

Willis Towers Watson is committed to helping organisations understand the current pay trends in the India market and getting compensation right, to be able to effectively retain their top talent.

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