Even as many companies, including tech giants like Twitter, Meta and Microsoft, have resorted to layoffs to cut costs since early 2022 amid uncertain global economic and business environment, the salary hikes have also got impacted. Recently, Wipro and HCL Tech have also deferred their salary hikes. Saumitra Chand, career expert at Indeed India, explained how layoffs, inflation and downsizing have impacted salary hikes across various industries.
Layoffs, Inflation and Salary Hikes
According to a recent survey by jobs search portal Indeed, 36 per cent of employers in India have planned to decrease their salary budgets this year. “The challenging economic climate brought about by layoffs, inflation, and downsizing has prompted some organisations to take measures to manage their financial resources more cautiously,” Chand said.
He added that not all employers have opted for salary cuts. Approximately 31 per cent of employers expect no change in their salary budgets, indicating a degree of stability in terms of compensation. “This suggests that these organisations may be taking a more balanced approach, striving to maintain salary levels despite the challenges faced,” Chand said.
About one out of every five or 21 per cent of employers are planning to increase their salary budgets. These organisations recognise the importance of attracting and retaining top talent in a competitive job market, even in the face of economic constraints. These salary Hikes may be targeted at high-demand roles or critical positions within their respective industries.
Salary Hikes: Which Industries Have Been Hit the Hardest by Layoffs and Downsizing?
Chand said the impact of layoffs and downsizing has been felt across various industries, with some industries being hit harder than others. Among these, the tech industry has experienced a significant impact. Data reveals that the tech industry in India witnessed a marginal decline of 3 per cent in the total number of tech jobs from April 2019 to April 2023. This decline indicates that the tech industry faced challenges in terms of job opportunities during this period.
“The tech industry remains resilient and adaptable. Despite the challenges posed by layoffs and downsizing, the industry continues to play a vital role in driving innovation and technological advancements. While the overall number of tech jobs may have declined slightly, it is essential to consider the shifts within the industry. Some sub-sectors or specialized areas within technology may have experienced growth, while others faced more significant challenges,” he added.
Industries Offering Higher Salary Hikes Despite Current Economic Climate
Despite the current economic climate, some industries have experienced growth and are offering higher salary raises. “Our data shows that some of the highest-paying tech job roles are as follows: The position of Principal Software Engineer tops the list, following closely is the role of Engineering Manager. Data Scientist is another lucrative tech role, additionally, Data Modeler and Software Architect positions offer substantial salaries,” he said.
While the technology sector has traditionally been at the forefront of job growth in India, there is another industry that is rapidly expanding and creating numerous opportunities – the BFSI sector. “Our data reveals the emergence of high-paying roles such as Portfolio Manager, Risk Manager, and Investment Banking Analyst. In addition, the presence of other lucrative positions like Finance Manager, Wealth Manager, and Credit Manager further highlights the growing importance of the BFSI industry in India’s job market. This expansion signals a promising future for professionals seeking rewarding careers outside of the technology sector in the country,” Chand said.
Industries’ Hiring and Compensation Strategies Amid Economic Challenges
Industries are adopting various strategies to attract and retain talent, especially considering the economic challenges they face. One significant trend that has emerged is the increasing adoption of remote work opportunities.
Employers want to maintain high morale in their organisations in times of widespread layoffs. Upskilling programmes, gifting professional developmental tools, and mentorship programmes are the top initiatives employers are undertaking, Chand said.
He also said that in order to attract and retain talent, companies have taken progressive initiatives. “We are already seeing benefits like, paid time off policies, advanced mental health support, maternity and paternity holidays, ESOPs, childcare/creche facilities as well as new age workplace perks like sleep pods gaining momentum.”
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