The impact of economic slowdown is expected to result in low salary hike of personnel across several sectors and in the case of those engaged with the logistics and supply chain businesses, it could well be the lowest during 2020. This is a major takeaway of Aon’s latest annual salary increase survey unveiled last week which presents data on the basis of response from over 1000 companies.
Of the 20 sectors covered in the survey, lowest annual hike of 7.6 percent has been projected for personnel in logistics and transportation sector. The average salary hike across all sectors is expected to come down to 9.1 percent from 9.3 percent registered during 2019. However, despite the dip in the projections, two out of five participating sectors – e-commerce and professional services – in the survey are projecting a double-digit increase. The pay increase in the FMCG sector, at 9.3 percent, is also expected to be better than the projected national average.
Navneet Rattan, Director, Organization, Performance and Rewards, Aon India, said, “We see a reduction in the differences between pay increases across industries, with 85% of the organizations projecting between 7%-11% – a sign of maturing business ecosystems. However, the premium for high performance and new age skills continues to rise.”