Deloitte - HR Projections Report 2023

State of HR: 2023
Increment and HR Trends

Deloitte India
January 2023
Private and Confidential | Not for Distribution | © 2023 Deloitte Touche Tohmatsu India LLP. All rights reserved |
Contents
03
Salary
Increment
and
01
Workforce
Trends
Executive Summary
02
Macro
Economic
04
Key HR
and Talent
Trends Trends
2
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Executive
Summary
3
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2023 Deloitte Touche Tohmatsu India LLP. All rights reserved
In Summary.. Business Outlook
India Inc. projecting salary increase at 10.1% for • 2 in 3 organizations in India foresee
2023, down by 20 bps from 2022 actuals a favorable business outlook for 2023
supported by strong economic indicators
despite global headwinds
• For the organizations which foresee a
Budget Planning favorable business outlook for 2023, their
9 out of 10 organizations salary increase projections are 10.3%
have started planning for the
2023 Increments
Bonus Payout
85% of the organizations are
planning to pay Bonus ‘As per
Plan’ for the Performance Cycle
Double Digit Increment (FY23)
48% organizations in 2022,
44% organizations in 2023 Skill Premium
are projecting double–digit Given razor sharp focus on niche skill
increments development, the associated skill
premium has burgeoned to 20% -
35% (1.2X jump over last year)
Increment Differentiation
1.7X – Increment Differentiation (Top Hiring

Performers v/s Average Performers). One of
the key focus areas of organizations is to Critical skills to be in spotlight
identify and reward the top performers for hiring in 2023. All
disproportionately. Sector wise differentiation:
Attrition industries are looking at
• Services – 1.7X • 23.2% - Overall Attrition reported for 2022 revamping their order board
• Manufacturing – 1.6X with Skills as its
• Life Sciences – 1.8X • 78% of the organizations have higher attrition in 2022 (v/s 2021) Keystone
• Attrition to soften in 2023 (<23%) on account of Tech Slowdown
4
Part 1
Key Macro
Economic and
Talent Trends
5
Indian Economy: A quick snapshot of the key economic variables
Despite issues associated with inflation and aggressive monetary policy measures, growth outlook remains positive with
India expected to be more resilient towards Global Headwinds
Weak outlook Strong outlook Neutral outlook
GDP growth Inflation Credit growth** Fiscal deficit
India’s GDP grew 8.7 percent in the In December 2022, the CPI was 5.72 Domestic credit growth was 13.1 percent in The fiscal deficit reached 37.1 percent of
FY2021-22 as compared to a contraction of percent. The CPI has come below the October 2022, against 11.6 percent in October the full year target during April−September
6.6 percent in the FY2020-21. Reserve Bank of India’s (RBI) upper margin 2021. Private sector banks continued to record 2022-23, amidst an increase in
What to expect? of 6 per cent for the first time in the higher credit growth than public sector banks. expenditure.
The RBI reduced the GDP growth projection calendar year 2022. What to expect?
for the fiscal FY2022-23 to 6.8 percent What to expect? Demand for credit may be dampened due to What to expect?
from its earlier forecast of 7.8 percent. Despite recent steps by policymakers to inflationary pressures and interest rate hikes. The deficit is expected to be 6.4 percent in
Optimists expect growth to range 7.1 – 7.6 counter inflation, high commodity prices and However, pent-up demand and improved NPAs FY2022-23 in comparison to 6.7 last
percent. Higher inflationary pressures and supply side disruptions are expected to keep may aid in better appetite among industries to financial year. Stronger direct tax revenues
geopolitical uncertainties weigh on outlook. inflation at elevated levels. borrow. will aid in a lower deficit and may reduce
the government’s net market borrowing.
Government’s 10-
year security Current account
Rupee FDI
yields deficit
The Indian rupee depreciated over 11% in India’s current account balance recorded a
Yields surged to 7.3 percent in December Total FDI inflow to India is expected to USD
2022 against the dollar - its poorest deficit of 2.8 percent of GDP in Q1 FY2022-
2022 from 7.2 percent after RBI announced 100 billion in FY2022-23, in comparison to
performance since 2013, owing to tighter 23, compared to 1.5 percent in Q4 FY2021-22
hike in the Repo rate of 35 bps USD 84.6 billion in FY 2021-22. Manufacturing
monetary policies in the advanced economies,
sector attracted the largest share of FDI
What to expect? geopolitical crisis, and fear of global economic
What to expect? equity, both at market value as well as at face
slowdown. However, it has appreciated against
Yields may remain volatile with upside risks The current account may deteriorate owing to value
EUR, Yen, Pound and several major Asian
amidst uncertainty around global liquidity currency depreciation, rising import bills, and What to expect?
currencies.
and tightening of monetary policy by the falling exports as global economy witnesses a FDI is expected to remain volatile due to
US and ECB What to expect?
slowdown. global uncertainties associated with the spread
Global uncertainties may result in continued
of the infection and the pace of monetary
dollar appreciation. That said, growth outlook
policy tightening in advanced countries.
will likely help INR to rebound late this FY.
Note: **Domestic credit is summation of net bank credit to government and bank credit to commercial sector. Growth is measured on year-on-year basis on real values, wherever applicable.
Sources: CMIE, RBI
6
Indian Talent Landscape is migrating towards a skill-based talent economy
The Indian companies have seen a significant growth in the last decade which continues with greater focus on skills. With
greater maturity of the talent and customer markets, the industry is striving to un-learn and re-learn in order to
adapt, by bringing about a change in their talent strategy.
Ecosystem taking a India as the ‘Talent

turn towards Nation of the World’
sophistication
What’s
causing the
industry there’s a parallel
wide surge in cross-
industry demand
Focus on niche skills that expansion? for technology and
gravitate towards analytical core skills
amalgamation of analytical ,
digital and domain Tier 2 locations have
expertise seen a rise in
prominence
Changing Talent Strategy Total Rewards as Key Focus Tackling Rising Attrition Hybrid Model Impact
• The focus is on optimizing • Total Rewards continue to be • With increasing demand there’s • Majority of the leading
best practices by seeking the most significant higher attrition of employees with organizations now have
domain expertise and motivating factor combination skills remote working policies
experienced employees • Introduction of new benefits • Focus on retention of existing • Organizations have introduced
and flexible work with rise in talent by altering current ‘hybrid’ benefits workcations,
• Focus on techno-functional
percentage of promoted policies
roles special allowances etc.
employees
7
Given the rise in demand for niche skills across industries, companies are witnessing
an increase in salary premiums across different skill sets
Rising demand of digital and technology skills across sectors has led to increase in cross industry competition for skills. Digitization,
Automation, Artificial Intelligence, Machine Learning, Cloud Computing are few of the Technology skills that are in high demand
and are being hired from across sectors.
Emerging Skills in the Market and Premiums paid by organizations over the base compensation
Core Skills Digital Skills Analytical Skills
Application Development 12-15% Data Engineers 12-15% Business Analytics 8-10%
Dev Ops 8-10% Robotic Process Automation 17-19% Risk Modelling & Governance 13-15%
UI/ UX 14-16% Blockchain 21-23% Quantitative Modelling 27-29%
Full Stack Development 12-17% Artificial Intelligence / Machine 21-23% Predictive Modelling 19-21%
Learning
Cyber Security 16-18% SEO / SEM 16-18% Data Architecture 19-22%
Professional Skills currently high in demand
❖ Project Management ❖ Continuity Management

❖ Digital Marketing ❖ Design Thinking
❖ Product Management ❖ Customer Experience
8
With challenges in the macro environment and increasing demand for both core and
niche skills, organizations are shifting talent strategy focus on getting right talent and
retaining them
Employee Cost Optimization through Talent in Core Skills
Skill based Pay Structured interventions taken by
As indicated in the previous pages, apart organizations to Identity with the
from individual performance, organizations Critical Skills / Roles for the
use skill-based allowance to organization. Customizing Career Paths
optimize Employee Cost. It will also help and Rewards Programs to ensure
reward and retain key talent retention
Talent Attractive on Campus Differentiated Benefits

Salary packages offered at Campuses are Improved wellness programs, additional
steadily increasing year-on-year. life insurance cover for family, Targeted
Organizations are designing sharp hiring Leadership Development Program,
offers/strategy to attract and hire the best Flexibility in Maternity Leaves Flexible
talent from campuses Work Arrangement
Upskilling Talent
Strategic Imperatives Design Hybrid Work Models
Post COVID-19, 80% of the
It is a growing non-monetary retention (Talent) for 2023 organizations have re-designed their
hook. In the present times, employees working policy. Employees have
expect/are looking continuous upskilling carefully identified roles/functions
initiatives by organizations so that they which can be offered WFH
continue to progress, the career-paths be
tailor-made
Digitization of HR Processes
Diversity, Equity and Inclusion
Most organizations have adopted
One of they key focus areas across all
digitization of HR Processes such as
industries in last 2-3 years,
PMS, Incentive Plans, Talent
organizations continue to evolve and
Development
produce well- designed / focused
initiatives
Utilization of Tier 2 Talent Supply
Organizations are progressing towards
hiring from Tier 2, Tier 3 Cities in India.
Reallocation Retention of Domain
With opening of office spaces in these
Experts / Experienced Employees
locations, attractive opportunities will
Key HR Focus Areas
continue to rise
9
Tier-2 cities in India emerging as talent hubs for companies
Industry Wise Choice of Locations across Industries within India
Industries Bengaluru Hyderabad Pune Mumbai NCR Chennai Tier 2*
Technology 1 2 3 21-22%
BFSI 1 3 2 3 23-24%
Professional Services 2 3 1 27-28%
Pharmaceuticals 1 3 2 19-20%
Telecom & Networking 1 3 2 31-32%
Automotive 3 2 1 1 23-24%
Chemicals 3 2 1 2 29-30%
Engineering Manufacturing 1 3 2 3 34-35%
1 Topmost Talent Base 2 2nd Most Prominent Talent Location 3 3rd Most Prominent Talent Location
Tier 2 Compensation Practice Insights Most Prominent Tier 2 locations with Talent Base
Differentials in Tier 2 Salaries vs. Tier
Levels Ahmedabad Coimbatore
1 Salaries (Discount %)
Chandigarh
Junior Professionals (0-3 Years) (30–50%) Mysuru
Indore Kochi
Senior Professionals (2-5 Years) (25–30%) Nagpur
Junior Management (4-7 Years) (20–25%) Jaipur

Bhubaneswar Jabalpur
• Compensation at middle management is at a discount of 15-20%,
Emerging Guwahati
however, not a lot of middle management jobs are being
Tier 2 Cities
outsourced to Tier 2 (unless it’s a manufacturing organization with Raipur
plant / remote location operations) Madurai Visakhapatnam
• In certain cases, location premiums are given basis talent availability & Nashik
relocation requirement Mangalore
Top 3 Tier-2 Talent Hubs
* - Differentials in Tier 2 Salaries vs. Tier 1 Salaries (Discount %)

10
Part 2
Salary Increment
and Workforce
Trends
11
Despite global headwinds, 2 in 3 organizations in India foresee a favorable business
outlook for 2023 supported by strong economic indicators
Analysis of Key Economic Indicators for India Business Outlook Forecasts by India Inc.
Economic Indicators Dec-21 Dec-22 Change Indicator

54%
Manufacturing PMI* 55.5 57.8 2.3
Services PMI* 55.5 58.5 3.0

Favorable
Business
Outlook
INR 1.30 INR 1.49
96%
Gross GST Collections 15%
trillion trillion
Unemployment (%) 7.9% 8.3% 0.4% 70%
• At the closing of calendar year 2022, India has been demonstrating relatively
strong economic indicators except for rupee exchange rate and Life Sciences Manufacturing Services
unemployment rates which continues to increase
• The S&P Global India Manufacturing PMI climbed to 57.8 in December
2022 from 55.7 in the prior month, pointing to the highest reading since • Nearly 67% of the organizations which foresee a favorable business outlook
October 2020 and marking the 18th straight month of expansion are projecting an optimistic 10.3% for 2023 increments. 96% of the services
industry foresee a favorable business outlook for 2023 followed by
• Services PMI increased to 58.5 in December 2022, pointing to the manufacturing industries at 70%
strongest expansion in the services sector since June, supported by a faster
rise in both new orders and output, amid favorable market conditions
• For the organizations which foresee an unfavorable business outlook due to
Economic Volatility, the 2023 Increment projections are lower – 9.2%.
*PMI numbers represent the index points. A reading above 50 indicates an expansion of the sector
compared to the previous month. The Purchasing Managers' Index (PMI) is an index of the prevailing
Organizations continue to closely monitor their internal cost pressures and
direction of economic trends in the manufacturing and service sectors external market scenarios to be able to take data-backed decisions
Private and Confidential | Not for Distribution | © 2023 Deloitte Touche Tohmatsu India LLP. All rights reserved Source: www.pmi.spglobal.com, World bank data, www.pib.gov.in 12
However, India Inc. continues to be slightly cautious in 2023 with overall salary
increment projections lower by 20 basis points
India Inc. Salary Increase Projections for 2023 stands at 10.1%
• The Indian economy

bounced back strongly
10.1%
after the Wave 1
challenges and 92% of
• COVID-19 pulled the the organizations gave a
economy in a recession pay increment in 2021
• Hiring pace gradually re- • Inflation and the current
• Only 60% companies
accelerated particularly geo-political situation
gave an increment
for digital / tech skills remains a concern
• 30% companies 10.3% despite strong Indian
extended a temporary • 2021 average increment economic indicators
pay-cut bounced back to 8.0%
• India Inc. continues to
• 2020 average increment be slightly cautious for
• The third-wave had little
was the lowest in 2023 with increments
• 2019 Pre-COVID impact on increments
decades (numbers 8.0% lower by 20bp, however
average increment had and bonus decisions
includes companies with still in double-digits
slowed to single digit across sectors
zero increments)
figure due to high • Hiring and retention
economic uncertainty became the top priorities
and cost pressures 4.4% as the “Great Attrition”
was in full force
• While companies had
projected a single digit
8.6% increment for 2022,
actual increments were
much higher at 10.3%
13
Sectoral salary projections are shadowing their respective industry performance with
Services leading the pack (in terms of YoY jump)
Sector 2019 2020 2021 2022 2023 (Projected)
Pan India 8.6% 4.4% 8.0% 10.3% 10.1%
IT (Product) 9.4% 5.4% 9.1% 12.0% 11.3%
ITeS 8.9% 5.8% 8.5% 9.4% 8.8%
Life Sciences 8.9% 7.3% 9.3% 9.4% 10.1%
Consumer Products 8.2% 6.9% 8.0% 9.0% 9.8%
Manufacturing 8.2% 3.5% 8.1% 10.2% 10.0%
Services 7.1% 3.2% 6.6% 8.6% 9.5%
• Having done a series of corrections in the last year, as well as exceeding their planned budget on account of Tech Talent Demand, the Manufacturing Industry is
taking a cautious approach as they prepare for business headwinds ahead
• Services industry is witnessing a significant demand rebound, reflecting in Talent Demand and Salary Increase Projections
Note: The data on this slide corresponds to averages including zeroes. Arrow marks indicate the change vis-à-vis the last year.
14
2023 Increment Projections are higher across Life Sciences and Services, most of the
industries across Manufacturing sector projecting lower increment v/s 2022
Overall, India Inc. 2023 (Projected) 10.1%
Overall, India Inc. 2022 (Actuals) 10.3%
Services Manufacturing Life Sciences
9.5% 10.0% 10.1%
8.6% 10.2% 9.4%
9.8% 9.5% 10.4% 9.5% 9.2% 10.1%
8.8% 8.3% 10.6% 10.0% 9.5%

10.3% 9.5%
9.2%
Engineering Automotive Oil and Gas
Retail Chemicals Pharmaceutical
Consulting Producers
10.1% 9.9% 9.4% 10.2%

9.8% 9.2%
10.3% 8.5% 9.6% 9.2%

9.1% 8.5%
Power Power
Telecom and Hospitals Automotive Traditional Med Tech
Renewable
Ancillaries Suppliers
9.5% 9.9%
9.7% 8.5% 9.9%
9.8% 9.7%
8.1% 8.8% 10.2%
Hospitality Metals and CRO

Development Engineering
Sector Manufacturing Mining
9.6% 9.4% 10.5% 9.0%

2023 average projected
8.2% 9.2% increments
8.1% 9.4%
v
Logistics 2022 average actual
Other Services Cement
Infra/Real increments
Estate
15
Organizations that follow the Jan-Dec cycle are expected to have lower increments for
2023
10.1% 10.1% 9.9%

10.0% 9.8%
9.6% 9.6%
9.4%
8.8%
April to March
April to March
April to March
Post May
Post May
Jan - Dec
Jan - Dec
Post May
Jan - Dec
2023 Projected Increments

Increment cycle by sector
7%7%
(% of companies)
21% 17% 15% 17%

Jan-Dec
April -March
Post May
69% 86%
62%
• Most of the organizations will be closely monitoring the Q4 performance and take decision on 2023 Increments
• 63% of the organizations follow the April – March cycle, the average projected 2023 increment is 10 percent.
16
Amidst high key talent attrition, organizations continue to focus on differentiation for
top performers
1.7x – 2022 1.6x – 2022 1.8x – 2022
1.6x - 2021 1.6x - 2021 1.7x - 2021
Infra/Real Engineering
Engineering 1.8x 1.7x manufacturing 1.5x Life Science 1.8x
consulting estate
Telecom 1.7x Chemicals 1.7x Oil and gas 1.5x Med tech 1.7x
Hospitality 1.7x Automotive

1.7x • We see the war for talent
producers
heating up as the delta for
top performers has gone up
1.7x Automotive
1.6x by 5 – 6% from the
Retail suppliers
previous year
• Going forward companies

Metals and 1.6x may have to tighten
Logistics 1.6x
Mining
budgets due to global
headwinds which would see
a reduction in the delta for
Hospitals 1.5x Cement 1.6x top performer pay
Development
Sector
1.4x Power 1.6x
Overall, 2021 1.6X Overall, 2022 1.7X
Performance Multiplier- Multiplier for each rating is calculated by dividing the salary increment for each category by Meets Expectation category.
An employee rated “Significantly Exceeds Expectations” will get 1.71 times the increment that the average performer / receives.`
17
Attrition continues to be a challenge across industries in 2022. However, 2023 may start
showing signs of easing out
Attrition (%) across Sectors
(2020 vs 2021 vs 2022)
22.4%
12.6% 14.1% 18.1%
19.5% 11.6%
Engineering Automotive 13.5% 17.7%
25.5 producers
Power
Life
consulting
22.1 sciences
20.8
25.4%
12.9% 8.2%
17.6
16.3
14.3 29.6%
13.0 14.1 Development Automotive
12.6%
Metals and 6.9% 16.2%
suppliers Mining
10.2
15.7%
25.0% Med - Tech
11.0% 19.8%
29.7%
10.2% 13.5%
Hospitals Cement Infra/Real
estate
41.9%
17.0%
35.8%
16.4%
Manufacturing Services Life Sciences Hospitality Chemicals
23.8% 12.2%
2020 Attrition Percentage
19.9% Engineering 9.6%
Retail Manufacturing
21.6% 10.8%
Key Talent Attrition is observed to be 2022 Attrition Percentage
17.3% 8.1%
1.5X of overall attrition Logistics Oil and gas
• Approx. 78% of the organizations have higher attrition in 2022 in comparison to 2021
• Changing employee preferences & influx of the Gen Z workforce, leading to adoption of new age talent retention practices (Hybrid Working /Tailored Jobs for Individuals/
Preferential Benefits/ Customized Designations)
18
The Wave of Market Corrections – Despite cost pressures, majority of the companies
provided salary corrections in 2022 and are projecting the same for 2023
Total Salary Increase Budget projected for 2023 (Pan India)
10.1% 1.2% 1.6% 12.9%
Merit Salary Promotional Market Salary Overall Total

Increase (as per Increase Corrections Salary
market salary (market (market average) Increase
report) average) Budget
Total Salary Increase Budget across industries

2022 2023 (P)
14.5 12.9 12.9 13.3
13.8
13.1 12.3
2.0 2.5 11.9 1.6 1.7 2.1
1.0
2.0 1.2 1.2
1.2 1.7
1.5 1.8 1.8
1.7
1.5
10.3 10.2 10.1 10.0 9.5 10.1

8.6 9.4
Overall India Manufacturing Services Life Sciences Overall India Manufacturing Services Life Sciences
Merit Increase Promotional Increase Market Corrections Merit Increase Promotional Increase Market Corrections
Overall, Salary Increase Budget

19
Part 3
Key Human
Resource Trends
in India
20
Benefits emerging out of the new ways of working include high focus on increasing
flexibility for employees through monetary and non-monetary offerings
Boundaryless or permanent work from Employee Wellbeing / Wellness Charter

anywhere model
• Organizations are developing Wellness Charters to create
• Employee freedom to choose work location
year-long plans to ensure focus on sustained wellbeing for the
• Vision of onboarding international workforce
employees
• Leveraging the Tier-2 Arbitrage
Insurance Sustainability
Partial /permanent work from home
• Companies are focusing on providing
• Major workforce granted WFH on a sustainable insurance schemes as
permanent/partial basis insurance premiums are escalating
• However, this trend is likely to soften in 2023 rapidly
Choice based work from home policies Financial Wellness

• Organizations have announced detailed • SME Sessions on the following topics
policies which allow employees to work part • Emergency Fund Budgeting
/ whole year from any location
• Organizations are likely to introduced • Retirement Fund Creation
rationalized salary packages (downward) for • Building Tax Efficiencies
employees opting for this model of work • Investing Fundamentals
Car Leasing
Job sharing programs
• Relaxing the eligibility criteria to ensure more
• Companies are making job sharing options employees are entitled to the scheme
open for many roles where employees
• Employees are being provided highly customized
want to make more personal time
offerings in terms of vehicle preferences
Parental Leave Policy
Workcations and Periodic meets
• Companies have announced 30 weeks of gender-
neutral parental eaves, unlimited parental leave • Many organizations are providing workcation, quarterly
policy for the first year of child’ birth summits for socialization of teams etc.
21
With emerging Hybrid Work Models, HR practices like traditional hiring process has
been completely reformed post pandemic
Shift to remote hiring Internal Mobility

80% of employers have Companies are moving towards project-
shifted to remote interviewing based and cross functional work
and hiring process. partnerships with key focus on Learning
and Development (L&D) programs
94%
Virtual Event Platforms
20%
Year on Year increase in
44% internal mobility
Using Interview Coaching
& Analytics Tools
66%
Employers increase budget for L&D
39%
Video Interviewing
Accountability on diversity practices

Reformation of hiring processes to reduce bias, from building diverse
interview panels to mandating data-driven reporting against diversity
goals
77%
are working on building diverse interview panels
22
Organizations have increased focus on hiring from campuses with mid-sized
organizations also increasing focus on hiring fresh talent
Campus Intake Basis Revenue of Hiring Organization (in Cr.) Percentage Increase in Compensation for campus hires
(from 2021 to 2022)
Less than 1,000

MBA
Above 10,000
(15%) 5% 5%
(30%)
3% 4%
Top 10 Colleges Tier 1 Tier 2 Tier 3
Engineering
4,000 to 1,000 to
10,000 (29%) 4,000 (26%) 8% 10%
13% 14%
Top 10 Colleges Tier 1 Tier 2 Tier 3
As more mid sized companies are starting to hire directly from campuses, more Under Graduates
hiring is being observed from Tier 2 and Tier 3 campuses. 9% 6%
Small and Medium sized companies now make up about 41% of all campus 8%
hires Tier 1 Tier 2 Tier 3
Top Skills in Demand for Laterals by Degree Emerging Practices on Campus
B. Tech / M. Tech Under Graduates BBA/ MBA

Artificial Intelligence HR Analytics Social Media Marketing 15 Days Job Rotation Induction Plan
Machine Learning
Financial Planning Financial Planning &
Fastrack Career Paths for New Joiners
Data Science Analysis
Risk Analytics Investment Banking
Cyber Security Industry-specific mandatory certifications sponsored
Research
Blockchain Data Analytics
Crypto Management
Product Development Marketing Growth 1 month in a year foreign work immersion subject to
& Design and Strategy Data Analytics approval
Platform Engineer Entrepreneurial Mindset Data Science
23
With a positive impact on retention observed from L&D investments, companies are
planning for short term and long-term Skill Supply
Top Factors That Make Candidates
Profiles Stand Out
2.2%
Share of total work
hours expended
during physical and
manual skills
Interview Skills
presence match
3.3%
Time devoted to
Relevant work
experience technological skills
79% 74% 63%
Internships
Culture Top 5 Skills in focus for L&D Investment
fit
Programming Problem Solving
Leaders agree that Leaders agree that L&D Companies are willing to Neural Skills Communication
reskilling a current has become more cross- hire someone with
employee is less functional transferable skills and
expensive than hiring a train them Active learning,
new one Cloud Computing
resilience, flexibility
• College degree continues to slip in significance.
Technical Certification more important than College Supply Chain Analytical Thinking
Degrees
• Role Diversity / Diversity of Experience take more
prominence (including Skills)
General Statistics Data Dexterity
Source- Linked In Learning Workplace Learning Report

24
Organizations across industries are moving towards building a culture of Diversity,
Equity and Inclusion
DEI Policies In Indian Organisations Leader’s Perspective Quality of Inclusive Practices
Today, leaders understand that diversity, 4.3 1.9

equity and inclusion is a top business
Adopted DEI Policies priority
41%
Intent
Formulated DEI Policies
46%
77% 3.7 1.1
of Indian employers believe that
On path of Formalisation Diversity, Inclusion and Belonging are
13% crucial for organizational performance
Structure
3.5 1.1
• Companies that invested in a diverse workforce are better equipped to attract talent and engage employees
more effectively Business Impact
• Globally, over two-thirds (69 percent) of executives' rate diversity and inclusion an important issue. Within
Best Organizations Rest Organizations
this, almost 75 percent of executives cite Inclusion as a top priority
Score out of 5 for top and bottom 10% firms
25
The Road Ahead…
As we embark into 2023, the changes in how we work, where we work, who we work with, and the technologies we use are here to
stay. Many of these changes started prior to the pandemic, but were swiftly accelerated by Covid-19, and have become permanent
aspects of the workplace. At the core of these changes is the emergence of the hybrid workplace, where some workers are on-site,
and some are remote. This new way of working impacts how work gets done, the workplace, and the workforce. Below are some key
questions to address in your journey to creating a hybrid workplace. However, in 2023, we are expected to see a strong RTO
Strategy (Return to Work) coupled with pay rationalization (reduction) for Hybrid / Completely remote workers.
Workers Workforce Workplace
• What job roles will continue to be in-person, • How is your organization defining
• How will your organization ensure remote
remote, and hybrid? and communicating flexible work practices?
workers are on equal footing with on-site
workers during meetings and access to
• Will your organization apply geographic professional development and mentoring?
• What type of hybrid workplace is your
differentials to worker’s salary structures, either organization creating? What new education is
for all employees or in certain situations? being offered remote workers? How are mental
• How will your people practices and office space
health benefits expanded to families?
change as remote working becomes permanent
• How will your organization support remote for a segment of your workers?
workers? What mix of technology, tools, mental
• What new jobs are being created for the hybrid
health benefits and financial support for home
workplace to be successful?
office supplies will your organization support? • What is your flexible work policy and how is
this communicated to the workforce?
26
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Deloitte - HR Projections Report 2023

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Deloitte - HR Projections Report 2023

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State of HR: 2023

Increment and HR Trends

1.7X – Increment Differentiation (Top Hiring

GDP growth Inflation Credit growth** Fiscal deficit

Ecosystem taking a India as the ‘Talent

Core Skills Digital Skills Analytical Skills

Application Development 12-15% Data Engineers 12-15% Business Analytics 8-10%

UI/ UX 14-16% Blockchain 21-23% Quantitative Modelling 27-29%

Cyber Security 16-18% SEO / SEM 16-18% Data Architecture 19-22%

Professional Skills currently high in demand

❖ Project Management ❖ Continuity Management

Talent Attractive on Campus Differentiated Benefits

Professional Services 2 3 1 27-28%

Telecom & Networking 1 3 2 31-32%

Engineering Manufacturing 1 3 2 3 34-35%

Junior Management (4-7 Years) (20–25%) Jaipur

* - Differentials in Tier 2 Salaries vs. Tier 1 Salaries (Discount %)

Economic Indicators Dec-21 Dec-22 Change Indicator

Services PMI* 55.5 58.5 3.0

Unemployment (%) 7.9% 8.3% 0.4% 70%

• The Indian economy

Sector 2019 2020 2021 2022 2023 (Projected)

Pan India 8.6% 4.4% 8.0% 10.3% 10.1%

IT (Product) 9.4% 5.4% 9.1% 12.0% 11.3%

ITeS 8.9% 5.8% 8.5% 9.4% 8.8%

Life Sciences 8.9% 7.3% 9.3% 9.4% 10.1%

Consumer Products 8.2% 6.9% 8.0% 9.0% 9.8%

Manufacturing 8.2% 3.5% 8.1% 10.2% 10.0%

Services 7.1% 3.2% 6.6% 8.6% 9.5%

Overall, India Inc. 2022 (Actuals) 10.3%

Services Manufacturing Life Sciences

9.5% 10.0% 10.1%

8.6% 10.2% 9.4%

9.8% 9.5% 10.4% 9.5% 9.2% 10.1%

8.8% 8.3% 10.6% 10.0% 9.5%

10.1% 9.9% 9.4% 10.2%

10.3% 8.5% 9.6% 9.2%

Hospitality Metals and CRO

9.6% 9.4% 10.5% 9.0%

10.1% 10.1% 9.9%

2023 Projected Increments

21% 17% 15% 17%

Hospitality 1.7x Automotive

• Going forward companies

10.1% 1.2% 1.6% 12.9%

Merit Salary Promotional Market Salary Overall Total

Total Salary Increase Budget across industries

10.3 10.2 10.1 10.0 9.5 10.1

Overall, Salary Increase Budget

Boundaryless or permanent work from Employee Wellbeing / Wellness Charter

Choice based work from home policies Financial Wellness

Shift to remote hiring Internal Mobility

Accountability on diversity practices

Less than 1,000

Top 10 Colleges Tier 1 Tier 2 Tier 3

Top Skills in Demand for Laterals by Degree Emerging Practices on Campus

B. Tech / M. Tech Under Graduates BBA/ MBA

Programming Problem Solving

Source- Linked In Learning Workplace Learning Report

DEI Policies In Indian Organisations Leader’s Perspective Quality of Inclusive Practices

Today, leaders understand that diversity, 4.3 1.9

Formulated DEI Policies

Workers Workforce Workplace