AON INDIA’S

28th ANNUAL
SALARY INCREASE
SURVEY
2022-23 PHASE I

Prepared by Human Capital Solutions

Proprietary & Confidential

1
FOREWORD
India remains cautiously optimistic against a volatile
global macroeconomic environment.
2022 has ushered in global volatility with unrelenting
signs of geo-political tensions, recessionary headwinds,
and inflation. Against this outlook, we believe that the
fundamentals of the economy remain strong with the
majority of the organisations in the survey anticipating
a 10%+ business growth. Unlike the world, there is no
imminent recession in India, but growth appears to be
moderating compared to 2021. The wide divergence
seen in business growth (the gap between extremes
of negative and high growth) as we emerged from
the pandemic in 2021 has reduced. The sectors that
struggled during the Covid, such as retail, logistics, and
hospitality have shown resurgence on account of strong
domestic demand.
India continues to see a waging war for talent, and
companies are doling out hefty increments to counter
this. Salary increases projected for 2023 are in double
digits, and this is a phenomenon that we’re seeing after
a decade. This is also a reflection of the confidence that
corporate India has on its strong & sustained business
performance. It’s a fine balance that business leaders
have to maintain to manage the high inflationary impact
and the salary pressures driven by high rates of attrition
and the growing demand for key & digital talent across
sectors.
India continues to project the highest salary increases
among the fast-growing economies in 2023, with the
salary increase in other large economies like China posed
to grow at 6.1 percent, Brazil at 6.0 percent, Indonesia
at 7.0 percent, and South Africa at 6.0 percent as per
Aon’s global Salary Increase and Turnover Survey 2022.
In fact, we find that the 2022 actual salary increment
number of 10.6% is higher than the projected number
in February 2022. The industries that are projecting the
highest salary increases are E-commerce, Professional
Services, Hi-Tech/IT, Financial institutions, and IT-
enabled Services.
2022 is also seeing a clustering of salary increases
across industries – the recession phenomenon of large
divergence has reduced as some of the worst pandemic-
hit sectors are seeing a rebound recovery. This year we
see some industries doling out extremely high salary
increments, while the average double digit increments
the bottom industries are also around the 9% mark.
2
As we witness the maturing of proliferating start-
ups and ecommerce businesses, there is a continual
demand for digital talent. This is driving above India-
median salary increases across E-comm, ITeS and
Tech. Our study highlights an interesting phenomenon
that the sectors giving the highest salary increments
in 2022 are also the ones that have faced the highest
impact of global volatility and uncertainty. Almost all
global-facing sectors, especially in the services domain
are taking a cautious approach and projecting lower
salary increases for 2023. Some Indian-economy facing
sectors like Infrastructure, Hospitality, Transportation
have shown a strong recovery and project higher 2023
salary increases.
The rising cost of talent is accompanied by sticky and
record-high attrition numbers. 2021 and 2022 have
been unparalleled when it comes to the talent exchange
that we are witnessing across sectors.
The overall annualized attrition number for 2022 stands
at an astounding 20.3% and the continuation of this
‘Great Resignation’ has been a significant concern for
the employers. This is only marginally lower than 21%
in 2021 thus retaining the pressure on salaries. We see
this trend continuing for the next few months.
While India inc. has shown tremendous resilience,
volatility will continue to be a key determinant of
business performance and salary increases across
industries. Whether double-digit salary increments
are here to stay will depend on how the economic
situation unfolds. Going forward, businesses will have
to optimize their talent investment with an eye on long-
term sustainability. Organisations which are agile, and
learning-savvy will be the best placed to navigate the
uncertain macro environment and will be the ones that
eventually come out on top.
Roopank Chaudhary
Partner and CCO,
Human Capital Solutions
Media Coverage
Across more than 125 media and broadcasting houses

3
About the Survey
and Key Considerations
The report presents the results of Aon’s India 28th Salary
Increase Survey trends. This is the longest running and
most quoted piece of research across rewards and
performance trends in India, as well as globally. The
survey focuses on overall changes in compensation for
2022 and projections for 2023.
With participation from over 1300 organizations
representing 40 industries that includes sectors such
as Hi-Tech/Information Technology, E-Commerce,
Professional Services, Financial Intuitions, FMCG/
FMCD, Hospitality, Energy etc. the study provides a
comprehensive view of current and emerging salary
trends across the spectrum of industries.
The report covers submissions received during September
and October 2021, and the results focuses on salary
budgets of 2022, salary budgets projected for 2023,
factors influencing pay decisions, performance and pay
trends, rewards challenges that organizations are facing
and measures taken-up to control the escalating attrition
4
rates across the sectors.
All numbers that have been reported are including 0s.
• Number of Respondents (Ns) across each question
in the survey are varying and hence the average
across employee groups may not be equal to the
overall analysis.
• Data has not been represented across those
questions wherein the number of respondents are
less than 5.
• Percentages will total more than 100% across
certain analysis due to multiple responses shared by
participants.
• Variable Pay has been represented as a percentage
of Total Fixed Pay.
• Attrition numbers have been represented for the
calendar year 2022-23 (YTD).
NOTE BY THE
SURVEY TEAM

2021 was a year of rapid recovery and

hyper-growth in most sectors around
the world. Now in 2022, as COVID-19
becomes endemic, organizations are
grappling with volatility, yet we also
see green shoots of recovery.

Organizations are increasingly

reassessing their outlook to choose Roopank Choudhary Jang Bahadur Singh
Survey Sponsor Survey Director
between consolidation and growth.
Consequently, talent investment
decisions will be pivotal to determining
the future trajectory and success of an
organization.

It is in this backdrop that we are proud

to bring you results from the 28th
edition of Aon India’s Salary Increase
Survey Phase I. The survey aims to
help you make better decisions, by Shilpa Khanna Sushil Bhasin
bringing you critical insight into the Survey Director Mktg & Media
status of economy for businesses, how
salaries are likely to change, emerging
talent trends, and more.

The survey garnered participation from

over 1300 organizations, spanning
across a broad spectrum of more than
40 sectors, pan India. In this edition,
we share insights for organizations to
help them plan for 2023 salary increase Shreya Krishnan Prateek Gupta
budgets, the digital upstart, improving Mktg & Media Survey Manager
employee engagement and managing
rewards in a hybrid environment while
creating an inclusive workplace.

We thank you for your participation

and the continuous patronage you
have accorded Aon over the years,
and hope that the report proves
useful as organizations set policies
and strategies to improve the odds of Aaradhya Sharma Vishakha Kalra
thriving in the new normal. Survey Team Survey Team

5
TABLE OF CONTENTS

1
Business Outlook 9
Highlights 10
Positive Outlook, Moderating growth 11
Impact of Volatility on Business sentiment 12
Macroeconomic Tailwinds and Headwinds 13
Hi-Tech Industry Outlook 14
ITeS Sector Outlook 15
Financial Sector Outlook 16
Consumer Sector Outlook 17
Life Sciences Industry Outlook 19
Manufacturing Sector Outlook 20

2
Salary Increments 21
Highlights 22
India Inc. to See Double Digit Salary
Increments 23
Salary Increase by Employee Groups 24
Sector-wise Increments 25

3
War for Talent 27
Introduction 28
Continued focus on Cash in Hand 29
Key Attrition and Retention Drivers 31

4
Pay for Performance 33
Highlights 34
Variable Payout Trends 35
Variable Pay Practices 37
Sector wise Variable Pay 38
Salary Increases and Performance 39
Performance Bell Curve for 2021 - 22 40
Employee Distribution by Performance 41
Sector-wise Performance Bell Curve 42
Measuring performance 43

6
TABLE OF CONTENTS

5
The Great Resignation 44
Introduction 45
Attrition Highlights 46
Sector-wise Attrition 47

6
Key and Digital Talent 50
Focus on High Density Talent 51
Salary Increase 2022 (A) 52
Skill Premiums 55
Attrition and Retention Trends for Critical
Talent 56

7
Diversity, Equity, and 57
Inclusion (DEI)
Introduction 58
Different Spectrums of Diversity 59
Current state of Gender Diversity 60
DEI actions for organizations 61

8
Environmental, Social, 62
and Governance (ESG)
Introduction 63
Quantifying ESG performance 65
Moving up on ESG maturity 66

9 New Ways of Working

Introduction
Evolution of benefits
67
68
70

10 Conclusion
Our perspective on the Road Ahead
Challenges and Way Forward for Rewards
71
72

Professionals 73

7
Overall Survey
Highlights
46% organizations are expected to give
double digit salary increases in 2023; a similar
proportion to 2022
Increase
Salary

10.6% 10.4%
2022 (Actual) 2023 (Projected)

The performance differentiation multiplier

remains high at 1.7x in 2022
Performance
Pay for

14.5%
Actual Variable Payout in 2022

Great Resignation impact being felt with attrition

numbers remaining near two-decade highs
Attrition

20.3% 17.5%
Overall Attrition Voluntary Attrition

8
1 Business
Outlook

9
Business Outlook
Highlights

87%
Organisations
88%
Organisations
reporting growth projecting growth
in 2022 in 2023

Sectors with highest growth outlook

(2023P)

Engineering/ Telecommunications Engineering

Manufacturing Services Services

Sectors with lowest growth outlook

(2023P)

Financial Retail (incl. Wholesale IT Enabled

Institutions & Distribution) Services

10
Positive Outlook, Moderating growth

Amidst rising volatility and growing signs of recession
in the western economies, the growth story in India
remains intact. We believe that the fundamentals of
the economy remain strong with three-fourth of the
companies anticipating a significant 5%+ business
growth. But pockets of very high growth are reducing and
the aggregated India Inc. projections are moderating as
we progress through the year. On the flip side, the number
of companies reporting a business decline has also come
down significantly.

Business growth outlook across organisations

2022 2023(P)

1.8%
4.7%

23.5% 17.7%

24.0% 21.8%

47.8% 58.7%

High Growth (20%+) No/minimal Change (0% - 5%)

Moderate Growth (5% - 20%) Decline (negative growth)

The fundamentals of the economy remain strong

with 50% companies anticipating a 10%+
business growth. But pockets of very high growth
are reducing.

11
Impact of Volatility on Business sentiment
Survey respondents have varied views on the impact
of economic volatility on business sentiments. With the
rising Volatility in the geopolitical environment, rising
inflation, and Margin pressures, 32% of the participants
are unsure of the business impact. Yet, another 24% of
respondents expect a negative downturn.
% responses foreseeing shift in business
sentiment due to economic volatility
Minor negative impact 22%
Major negative impact 2%
No impact 44%
Not sure 32%
12
1 out of 2 organizations are adopting a wait-and-watch
policy before initiating budgeting for FY 2023, and 1 out
of 4 would take time to re-evaluate their next steps before
crystallizing their budget plans for FY23. Originations
seek more information to demystify the volatility and
pave the way for organizations to design a future-looking
rewards strategy.
% responses on how economic volatility
affected budget for FY2023
No major impact foreseen 16%
Re-evaluation plans in-line with
the volatality 25%
Awaiting more information to
take a call 45%
Not sure 13%
Macroeconomic Tailwinds and Headwinds

While India is deeply integrated with global economy, there are a few
indications of decoupling.

Tailwinds:
• The pick-up in consumer demand and covid-
driven digital transformation have been drivers
of improving business sentiments. The recent
phenomena of revenge buying & travel have
aided some of the badly-hit sectors in Covid.
• Spurt in capex spending has given a push to
infrastructure and a boost to the manufacturing
sector. Higher domestic production aided by
the PLI scheme, and buoyant exports are likely
to be the key drivers of growth.
• There is an improvement in key financial sector
metrics backed by strengthening balance sheets
and a reduction in stressed assets. As per RBI,
NPAs are at a 6-year low, with net NPA standing
at 1.7% for banks. Financial inclusion is also
on the rise with a digital finance revolution led
by the Fintechs and NBFCs, who are enabling
easier access to credit.
Headwinds:
• Global headwinds such as the Russia-Ukraine
war have led to disruption in the global supply
chain and triggered a looming energy crisis in
Europe.
• Surplus liquidity, elevated oil & commodity
prices, and logistics & supply-side bottlenecks
have led to inflation, which has been hovering
above RBI’s tolerance band for the last 2
quarters.
• There are growing fears of US and European
recession. While India’s growth projection is
seeing some moderation. It is still the highest
among the large economies listed by IMF.

Rebound in economy and

Headwinds

consumer demand revival

Tailwinds

Disruption in global supply

chain and energy markets
Heavy CAPEX spending by
government and private players
Inflationary pressures &
recessionary fears
Stronger financial sector-
Improving health of balance
sheets

13
Hi-Tech Sector Outlook
Today the Hi-tech sector is very diversified
irrespective of the lens you take, from
business models and revenue streams
to talent profiles. The lines between
traditional businesses have blurred on
account of industry convergence and the
89% 91%
86% 87%
Hi Tech Sector Software Product
Growth 2022 A
The lines between traditional businesses are
blurring on account of industry convergence and
the emergence of X-tech sectors like FinTech,
WealthTech, InsurTech or EdTech.
IT services
IT Services as a sector saw a secular
bull run from late 2020 to early 2021 as
firms across the board tried to scale their
digital businesses. Now the sector is under
threat from the worsening macro situation
in US and Europe which are the highest
spenders on IT Services. This sector is
also reeling from supply-side challenges
with high attrition accompanied by rising
IT Product
The IT Products sector in India largely
comprises of technology captives. The
erosion in value for the growth sector and
margin pressures have been pronounced
in this segment. In Global HQs we have
seen tightening and, in a few places,
tough decisions like lay-offs as well. India
is yet to see the full impact of the same
and has largely been restricted to hiring
freezes. The argument also exists that
Start-ups
Growth firms are under pressure in the
silicon-valley with valuations nose-diving
amidst recessionary fears in the US and
global tensions. With the cost of capital
rising, we have seen an impact on the
start-up sector with funding coming in at
lower valuations as compared to 2021.
We have also seen some layoffs largely
in operations/customer-facing roles in
certain start-up sectors like consumer
tech. A few have also pushed out their IPO
plans. Thus, in 2022 VC firms have placed
a lot of value on ESG, Governance, and the
road to profitability.
emergent trend of “X-Tech”. We can take
a broad brush and divide this space into
3 categories - IT Services, IT Products,
and Early-stage Segment. Each sector
has its own unique context and is showing
interesting trends.
97% 97% 94%
88%
IT Services Start Ups
Growth 2023 P
talent costs. But there is latent optimism
as analyst commentary predicts growth
on account of strong demand pipelines
and the untapped digital story, which is
yet to penetrate segments like H&PS,
O&G, etc. Given the maturity of the sector
and the fact they have dealt with similar
business environments in the past exudes
confidence and cautious optimism.
the rise in margin pressures rise may be
an opportunity for India given the cost
arbitrage advantage that the geography
has. India is the only location with an
existing ecosystem that can provide the
scale and talent maturity that this sector
demands. Thus, even the world faces a
recessionary scenario, India could still be
isolated to a fair degree.
While we may be in a mild funding winter,
for organizations with proven business
models there is no shortage of backers.
We are seeing newer unicorns emerge
and firms continue to raise new rounds of
funding. For start-ups to survive and thrive
they will need to focus on building around
the core product and service rather than
invest in high-risk and costly off-centre
experiments. Firms will also rely more than
ever on their leadership group and a value
system that helps them navigate this tricky
period.
14
ITeS Sector Outlook
India’s journey into IT-BPM started with
the BPO and Captive segments as large
financial services firms set-up their shared
services centers in India at the turn of the
century looking for cost arbitrage options.
Today India is a pioneer in the production
and exports of IT and ITeS, including
software, business processing, financial
technology, e-commerce, and online
health services. Their combined share
in GDP grew from 15 percent in 2007 to
16 percent in 2010 despite the Global
The move for Captives to Digital & COE set-ups will drive
value added services. This shift will be led out of India and
will continue to grow despite recessionary fears
82% 82%
79%
ITeS Sector KPO/BPO
Growth 2022 A
Captives
GICs by far have the biggest share of the
BPM pie and cuts across diverse sub-
sectors like financial services, engineering
captives, pharma captives and retail GICs.
The fortune of these GICs are closely
linked with HQ performance but broadly
speaking even during the pandemic
this was one sector which continued to
see growth. Most of the GICs are doing
dual journeys of increasing operational
efficiency for jobs at the lower end of the
value chain and segments that are looked
at as the ones that will build the future
of the organisation. Banking captives
are the most mature of the lot and the
largest by number of set-ups and HC
employed and despite the poor macro-
KPO/BPO
Along with the GICs the BPO/KPO
segment has been a silver lining and a
space which has seen very high growth
in the last two years. As more and more
firms look at data solutions within risk
and ESG KPOs have seen tremendous
value appreciation. Most KPOs are also
doing platform journeys and are looking
at technology solutions for backward
integration into the client eco-system
to further improve margins for them
as clients look at consolidation. BPOs
Financial Crisis in 2008-09, and to 21
percent in 2019.
Over the years this sector has seen the
journey from cost arbitrage to value added
services to now a stage where we are
seeing value creation and COEs being
set-up in analytics, cyber security, etc.
India’s BPM segment can be broken into 3
sectors General-in-house Captives, BPOs
and KPOs each with its own unique set of
challenges and growth areas.
93% 89%
83%
Captives (Including
BFSI)
Growth 2023 P
environments we are seeing high growth
in this segment. We are seeing more and
more jobs moving to the middle office in
search of lower talent costs and to fuel
their expansion into adjacent horizontals.
At the same time technology
implementation continues to be strong
as we continue to see large scale
transformation across GICs from legacy
systems to moving towards integrated
cloud-based enterprise systems. The
move for GICs to Digital set-ups will be led
out of this geography and is likely to be a
segment that we expect to grow despite
recessionary fears in US and other parts
of the developed world.
have also been in focus with increase in
offshoring and expanding beyond India
to nearshore locations as well for clients
but with PnLs sitting in India. Similar
to captives BPO segment is generally
considered recession proof given the
opportunity for end clients to protect
margins. This along with increased
penetration in new verticals gives us
confidence that the Indian BPM segment
will go from strength to strength even in
2022-23 despite global headwinds.
15
Financial Sector Outlook
The fiscal year gone by was a mixed bag,
with the first half being heavily impacted
by the Delta variant and the second half
seeing a strong economic recovery. With
a robust post-pandemic GDP growth
and deleveraged balance sheets across
the board, India and its financial sector
stays resilient in the face of headwinds
characterized by global cues. The uptick
100%
91%
83% 83%
79% 78%
45%
40%
Financial Banking FinTech Funds/Asset
Institutions Management
Reinsurance
Growth 2022 A
Indian financial Services sector is at a focal point
of transformation and change – Rising digitization,
NBFC and Fintech boom, PSB reforms, surge in
M&A activity and increasing regulatory oversight.
In the midst of economic uncertainties,
India Inc at large and the Financial
Services sector in particular is at a focal
point of transformation and change.
Buoyed by an uptick in the economy
in late 2021, the sector has witnessed
growth across Banks, NBFCs, Private
Banking, Insurance and other sub-sectors.
The sector has also witnessed some large
M&A and consolidation activities. Digital
transformation, expansion of brick and
mortar networks, rural lending, financial
inclusion, focus on SME and MSME are set
to be growth engines for the private sector
players in Financial Services. At the same
time there has been a lot going on in the
public sector front in Financial Services
including NPA management, improving
efficiencies, revamping frameworks,
privatization efforts amongst many others.
In line with the ongoing transformation in
the sector, there is also a heavy demand
for skill sets and talent which will pave the
in investments (supported by Government
capital expenditure and some revival in
private capital expenditure) and strong
export growth has been a pillar for the
expansion of the economy. There is
however a cautious optimism in the face of
the rising global inflation, the Ukraine war,
anticipated global slowdown.
100% 100%
92% 92%
83% 82% 83% 83%
75%
50%
General Investment Life Insurance NBFC Wealth
Insurance/ Banking Management
Growth 2023 P
way for the envisioned future. The talent
conundrum emerging in the Industry today
is to be able to find effective and innovative
Talent Management and Rewards
strategies which will enable organizations
manage the traditional and future skill
cohorts while dealing with current realities
of decade high attrition numbers, offer
drops, growing demand for core sector
skill sets from non-traditional players.
DE&I and ESG have also been emerging
focus areas for the sector. Building future
leaders, investing in re-skilling and up-
skilling of talent, and shifting the hyper-
personalization lens inwards to meet
employee preferences cutting across
Rewards, Performance, Wellness & Being
will prove to be a huge advantage for
organizations in the long run.
16
Consumer Sector Outlook
FMCG/FMCD
Consumer markets globally are changing
dynamically in the face of continuous
disruption. Fast-moving consumer goods
and durables (FMCG/FMCD) industry in
India continues to flourish and be a bright
spot for the global consumer companies
despite the macroeconomic and geo-
political challenges. This trend is mainly
attributed to increase in demand for
convenience with enhanced economic
activities and changing consumer
behaviour post-pandemic. Consumers are
now far more informed, research-driven
and demanding. It is also a result of the
upward income mobility in India that is
driving growth across all consumption
categories. Aspirations across urban and
rural India are fast converging, and the
better access will transform this intent
into actual spend. With increased adoption
of omni-channel strategies along with
new-age digital technologies, consumer
companies in India have been able to tap
this opportunity. As a result, the industry
is expected to record a strong growth this
year.
91% 88%
85% 86%
81%
Consumer Durable Non-Durable: Foods,
Beverages, Tobacco,
Personal care,
Growth 2022 A
Evolving post-Covid consumer preferences
have pushed companies to adopt omnichannel
strategies to create seamless experiences and
tap consumers across all spend categories
The same is evident from the overall
average salary increase numbers for the
industry this year. The FMCG/FMCD
industry has recorded an overall average
salary increase of 9.5%, which is the
highest for the industry since 2018. The
market sentiments are strong projecting
an overall average salary increase of
9.9% in the coming cycle. Companies this
year have gone a step ahead to pay and
retain their digital and other key talent.
The attrition for the FMCG/FMCD industry
stands at 16.5% but it is still amongst the
lowest if compared to other industries.
Majority of the firms have paid out
bonuses on time basis the actual business
performance. The Variable pay spending is
also above average when compared across
industries. Major areas of concern for the
industry are still around maintaining the
market competitiveness while keeping the
wage bill in check, differentiating rewards
for key talent and improving the linkage of
performance and productivity to rewards.
92% 92% 90% 90%
83%
Retail (incl. E-commerce
Wholesale &
Distribution)
Growth 2023 P
17
Ecommerce / Retail
With the entry of various new players,
the Indian retail industry has evolved
into one of the most dynamic and fast-
paced industries. It currently accounts
for more than 10% of the national GDP
and around 8% of total employment.
Between 2019 and 2030, the sector is
predicted to grow at a 9% annual pace,
rising from $779 billion in 2019 to $1,407
billion by 2026 and $1.8 trillion by 2030.
Despite unprecedented problems, the
India consumer story remains strong, with
household spending increasing to $1.63-
1.75 trillion in 2022. The Ministry of MSME
has also announced inclusion of retail and
wholesale trades as MSMEs, the sector
will now get the benefit of priority lending
under the RBI guidelines.
The COVID-19 pandemic has resulted in
a shift in consumer preferences that has
a substantial influence on how people
purchase and consume things. Customers
no longer differentiate between offline
and online consumption channels; thus,
many businesses are experimenting with
new approaches to create seamless retail
experiences that are integrated across
all channels. E-commerce is constantly
developing in the country and is causing
the greatest transformation in the retail
business, and this trend is expected to
continue in the coming years.
The Indian E-commerce business has been
expanding and is predicted to surpass
the United States to become the world’s
second-largest E-commerce market by
2034. The sector is projected to reach
$350 billion by 2030 from an estimated
$55 billion in 2021, due to rising online
shoppers in the country. In addition, India’s
E-Commerce business has attracted $15
billion in PE/VC investments in 2021, the
biggest investment value obtained by any
sector in India. The government’s large
investment in building a fiber network for
5G would also help promote E-commerce
in India.
Employee turnover rates in the Indian
retail and e-commerce industries were
17.5% and 28.8%, respectively, in
2022, in accordance with the market’s
high attrition trends. Organization in the
retail and e-commerce space are shifting
focus on hiring and retaining talent with
differentiated rewards practices focusing
on wellness, security, and sustainability.
The same is reflected in the salary increase
trends where we are witnessing significant
hikes. The average salary increases for
the years 2021–2022 in the retail industry
was 9.9%, while in the e-commerce
industry it was 13.7%. Overall, the long-
term prospects for the Indian retail and
e-commerce industries are optimistic,
thanks to rising income, favorable
demographics, entry of international
businesses, and increased urbanization.
18
Life Sciences Sector Outlook
The Indian Life Sciences industry has
successfully navigated through the
challenges posed by the pandemic, it has
displayed resilience by growing steadily in
both the domestic and foreign market. The
industry has been on a double-digit growth
rate and is expected to reach USD 130
Billion by the end of 2030, boosting the
country’s economy. The Indian government
has set ambitious goals for the healthcare
sector and is fuelling the same through
initiatives like Make in India, Ayushman
Bharat Scheme and National Digital health
Mission along with accelerated drugs
approvals. This has opened the untapped
potential of the Indian Healthcare sector
presenting an opportunity for organizations
with higher investments. A big boost
has also been seen in both the CRO and
89%
83%
80%
75%
Life Sciences Sector CRO
Growth 2022 A
Industry is witnessing a shift in focus from access
& affordability to Quality of Care and Cure,
enabled by rise in the adoption of technology,
global partnerships and stronger R&D capability.
In line with the strong attrition trends in
the Indian market, Indian Life Sciences
industry too witnessed an employee churn
rate of 16.9% in 2022, which however
was on the lower side in comparison to
other sectors in the Indian market. The
industry has seen organizations shifting
their primary focus to retaining and
attracting talent with measures such as:
global mobility plans, enhanced rewards
Medical Technology sector with the rise
in the adoption of technology, global
partnerships, stronger R&D capability
and manufacturing infrastructures, and
a decrease in imports in the Medical
Technology sector aided by government’s
Make in India initiative and Atmanirbhar
Bharat mission. Fast urbanization, growing
disposable income, easier access to
medical infrastructure, improvement in
health insurance penetration, and diseases
linked to lifestyle have also been a few key
drivers of business expansion. While the
industry is witnessing growth, there are
serious challenges such as pricing pressure
in regulated markets, rising cost of talent,
raw materials and packaging materials,
and changes in regulatory norms.
91% 89%
86% 83%
Medical Technology Pharmaceutical
Growth 2023 P
and recognition programs, and unique
working models to name a few. Salary
increments also took a leap towards
getting closer to the double-digit number,
with a 9.8% average increment for the
year 2021-22 in the industry. We see the
projected increases for 2023 at 9.4%
for the pharmaceutical organizations, at
10.4% for the CRO sector and at 10% in
the Medical Technology sector.
19
Manufacturing Sector Outlook
Auto
The Indian automotive industry continues
to be one of the largest in the world,
with significant contribution to the
Indian economy, upwards of 7% share in
India’s GDP. While the sector witnessed
significant slowdown in last two financial
years on account of the domestic
industry slowdown (FY20) and pandemic-
induced challenges (FY21), it has been
demonstrating steady recovery over the
last few quarters. The trends, in fact,
have been quite encouraging from the
second half of FY21 onwards, with various
automotive segments reporting healthy
sequential growth, post relaxation of the
lockdown-related restrictions.
96% 93%
89%
Automotive/Vehicle Engineering/Manufac-
Manufacturing turing
Growth 2022 A
Restoration of global supply chains, unwavering
consumer demand and robust policy support is
driving a strong growth impetus across Auto and
Engineering/Manufacturing sectors.
Engineering Manufacturing
Despite a sluggish period from 2020
to 2022, the Indian engineering /
manufacturing sector has seen a
remarkable growth in the last decade. This
is primarily driven by the rapidly growing
economy with a focus on manufacturing,
infrastructure, Automobiles etc. have
generated heavy demand in the market
for the industry. However, despite such
progress, manufacturing has remained
largely dependent on foreign producers
for raw materials, parts, and consumables
such as Active Pharmaceutical Ingredients,
spare parts, semiconductors, yarn, and
more. This is the reason why Covid-
induced disruptions in the international
Energy
India’s power sector is one of the more
diversified in the world. While conventional
power generation like cola, gas, Hydro,
nuclear etc. remains stills commands
majority of the power generation, India
has been seeing rapid increase in the
capacity for renewable sources like wind,
solar and waste. Electricity demand in the
country has increase rapidly in the last
few decades and the trend is expected to
continue requiring significant addition to
the installed generating capacity.
Current share of the renewable sector in
the country is around 18% however this is
expected to grow more than 2.5 times in
The commercial vehicle category
continues toward the recovery path, and
we are also seeing encouraging signs
around the two-wheeler and heavy vehicle
category. One of the most exciting bets
for the auto industry comes from in the
shape of convergence sector of EV. The
EV market is expected to grow at CAGR of
49% between 2022-2030 and is expected
to hit 10 mn-unit annual sales by 2030. The
EV industry will create 50 mn direct and
indirect jobs by 2030. Granted continued
easing up off the semi-conductor supply
the industry overall is signalling a positive
outlook for the automobile sector in 2023.
100% 92% 91%
Energy(Oil/Gas/Power)
Growth 2023 P
supply chain had also adversely impacted
the Indian Manufacturing sector.
Now as the effects of the pandemic wares
off we are seeing the restoration of global
supply chains and a robust momentum
in the demand which is giving this sector
a fresh growth impetus. The segment
is further encouraged by the policy
reforms declared in the budget 2022 and
investments expected in building smart
corridors and smart cities. Against this
backdrop, India’s manufacturing GDP
is forecast to grow at an average annual
rate (AAGR) of 9%, in nominal terms, over
2022-26
the next decade. While the overall demand
will also continue to grow rapidly. This
focus on the green energy coupled with
high demand for sustainable energy in the
country has seen significant foreign direct
investment in the country primarily in the
renewable generation space in the last
three to four years..
This coupled with the favorable policies
and subsidies for the renewable sector,
and government’s plan to cross 200GW
capacity of renewable power by 2022
make the sector one of the most exciting
ones in the country.
20
2 Salary Increase
2022-2023

21
Salary Increase 2022-2023 Highlights

45.92% 10.6%
Companies Projecting Overall Salary Increase
Double Digit Salary (A) 2022
Increase

10.4% 12.8%
Overall Salary Increase Sector with highest
Projected Increase:
(P) 2023
Ecommerce

9%
Sector with lowest Projected
Increase: Hospitality/QSR

22
Salary Increase
2022-2023
India Inc. to See Double Digit Salary
Increments

2022 is witnessing a clustering of salary increases across industries –

The large divergence seen during the recession has reduced and sectors
heavily hit by the pandemic are seeing a rebound recovery.

2022 has seen some industries giving out touching double digits with 10.6%. A deep dive into the
disproportionately high salary increments. However, even data highlights that 45% of the firms will deliver double-
the lowest-paying sectors have witnessed a spike in the digit increases, a significant jump up from 32.5% in
salary increase number, averaging around a respectable 2021. Similarly, we see that the proportion of companies
9% increment. Our survey projects that salary increases projecting 14%+ increments in 2023 is the highest in the
in 2023 are likely to be the highest over the past decade past decade.

Proportion of companies across salary increment buckets

(Comparison of 2023 projection vs 2019 pre-pandemic actuals)

2023 (Projected) 2019 (Actual)

42.9%
40.17%
38.6%
37.9%
9.7% 18.6%
7.9% 1.6%
1.6% 0.8%

0-5% 5-8% 8-10% 10-14% 14%+ 0-5% 5-8% 8-10% 10-14% 14%+

Average: 10.4% Average: 9.3%

23
Salary Increase by Employee Groups
2022 (Actual) and 2023 (Projected)

Further analysis of the data alludes to a trend of organisations shaving off increments across the board, where middle
and junior layers would be least impacted. The Senior or Top management would be seeing the highest impact as the
increases would be shaved off with more focus on Business-linked Incentives. Organisations are ramping up for a slow
start in 2023, with a hope for stability by Q3, 2023.

Overall Salary Increase by Employee Groups

Salary Increment %
2022 A
2023 P 9.7%
Top Executives/
Senior Management 9.1%

10.5%
Middle Management
10.1%

Junior Management/ 11.1%

All Professional/Supervisor
10.8%

7.9%
Clerical Administration
7.7%

5.2%

Manual Workforce 5.1%

10.6% 10.4%
Overall Salary Increase Across Projected Salary Increase Across
Employee Groups 2022 (A) Employee Groups 2023 (P)

24
Sector Wise Increments
2022 Actuals and 2023 Projections
Highlights
Increment % 2022 2023

India Inc. Manufacturing Services

10.6% 10.4% 9.6% 9.7% 11.3% 10.8%

Aerospace Engineering Chemicals

9.3% 10.0% 9.6% 9.7%

Automotive/Vehicle Manufacturing
Cement
10.1% 9.6% 8.7% 8.7%
Auto Producers
10.3% 9.7%
Auto Suppliers Engineering Services
9.7% 9.5% 9.5% 9.6%

Energy (Oil/Gas/Coal/Power)
Other - Manufacturing
9.5% 10.1%
8.7% 8.4%
Power
9.7% 10.3%
Lifesciences / Pharmaceuticals
Oil/Gas
9.8% 9.8%
8.4% 10.6%
CRO
Renewables
10.6% 10.4%
10.3% 9.7%
Pharmaceutical
9.2% 9.4%
Engineering/Manufacturing
Medical Technology
9.7% 9.9%
10.3% 10.0%

FMCG/FMCD
9.5% 9.9% Manufacturing (Without
FMCG/FMCD & Life Sciences)
Non-Durable: Alcohol-beverages 9.8% 9.8%
10.8% 10.5%
Durable
9.3% 9.8%
Services (Without
Non-Durable : Foods, Beverages, Tobacco, IT/ITes, FI and E-Commerce)
Personal care, Wellness 9.7% 10.0%
9.5% 9.9%

Metals & Mining

9.7% 10.0%

25
Sector Wise Increments
2022 Actuals and 2023 Projections
Highlights
Increment % 2022 2023

India Inc. Manufacturing Services

10.6% 10.4% 9.6% 9.7% 11.3% 10.8%

Financial Institutions ITeS

10.9% 10.5% 10.7% 10.1%

Banking/Private Banking Other Captives

10.2% 10.0% 11.1% 10.8%
Funds/Asset Management Third Party Service Provides
11.7% 11.8% 9.9% 8.7%

Investment Banking KPO

11.2% 10.1% 13.3% 11.2%

NBFC BFSI Captives

11.5% 10.7% 10.3% 10.3%

Life Insurance
Transportation Services/Logistics
9.1% 9.0%
8.7% 10.0%
Fin Tech
12.1% 11.1%
Telecommunications Services
General Insurance
9.9% 9.7%
10.0% 9.9%
Wealth Management Professional Services
11.6% 10.5% 12.4% 12.1%

Hi Tech/Information Technology Real Estate/Infrastructure

12.0% 11.3% 8.7% 10.1%
Software Products
12.1% 11.6% Other - Services
8.7% 9.1%
Application Services/Consulting
11.3% 10.6%
Hospitality/Restaurants
Semiconductors
8.5% 9.0%
11.9% 12.0%
Start-Ups Ecommerce
14.3% 12.6% 13.7% 12.8%

Entertainment & Media

10.6% 10.9%

26
3 War for
Talent

27
War for Talent

Majority of the organisations see an offer decline rate between 10%

to 30%. The sectors facing the highest impact of the war for talent are
Technology and Professional Services.

Scouting, developing, and retaining talent has always been a key priority for organisations. But, the “War for Talent”
has risen fast to be one of the top risk elements that organisations are grappling with in recent years. While firms want
to attract, groom, and hold on to the brightest talent, the problem is the relative deficiency of high-quality applicants
and they are difficult to discover. This difficulty has come to the fore because of the exceedingly unstable and novel
conditions we have encountered recently. Since the pandemic’s start, people have changed careers, lost employment,
and even created some new ones. Employees have had a chance to re-evaluate their priorities and re-consider their
careers to better align with their internal compasses.

% of companies classified into offer drop rate cluster

Industries with most offer declines

34%
Hi Tech/Information Technology

29%
IT Enabled Services
% of companies

24%

Professional Services

7% Financial Institutions
5%

Automotive/Vehicle Manufacturing
0-10% 10-20% 20-30% 30-40% More than
40%
E-Commerce
Offer Drop Rate

FY 2022

28
Reasons for Offer Declines

Offer not competitive 14.1%

Retained by current employer 37.5%

Competing offer from another firm 40.4%

Inconsistent Candidate Experience 4.5%

Unappealing Employer Brand 2.6%

Majority of the organisations see an offer decline rate

between 10% to 30%, The war for talent has been
extremely critical in the Technology sector followed
by the professional services sector. Conventional
sectors such as automotive/vehicle manufacturing
has also positioned itself on 4th amongst all sectors
facing the highest offer declines. Although the Top
2 reasons for offer declines stay same as FY2021,
Candidate Experience and Employer Brand have
become more prevalent as reasons for dropping an
offer at hand.

Majority Orgs in India Inc. see an offer decline rate of 10-30%, The war for talent has been extremely critical in the
Technology sector followed by the professional services sector. Conventional sectors such as automotive/vehicle
manufacturing has also positioned itself on 4th amongst all sectors facing the highest offer declines. Although the
Top 2 reasons for offer declines stay the same as FY2021, Candidate Experience and Employer Brand have become
more prevalent as reasons for dropping an offer at hand.

Continued focus on Cash in Hand

C&B and Team teams largely focused on
Cash in Hand
In comparison to 2021, top two hiring strategies i.e. Joining Bonus and Matching/Exceeding the counter-offer have
shuffled ranks, but larger focus on cash has been persistent across the last few years. Marginally lowered numbers
in referral-based hiring and hiring candidates that are in fag end of their notice periods, the focus has shifted on
giving higher increases during appraisal cycles and introducing long term value creation options such as Equity/LTI
programs.

Measures being taken organizations to

reduce the number of offers declines
Measures being taken by organisations to reduce offer declines

20% 19.6%
19% 19.5%
20% 19.6% 17%
19% 19.5% 15.6%
17%
15.6%
12% 11.9% 12.0%
10% 12.0%
12% 11.9%
10%
5% 5.3% 5%
3.8%
5% 5.3% 5%
3.8%

Hire candidate who Joining Bonus Match/Exceed the More referral based Increase higher Introduced an Hire more
are at the end of Counter offer raises raises Equity/LTI Program candidates than the
Hire candidate who Joining Bonus Match/Exceed the More referral based Increase higher Introduced an Hire more
their notice period requisition
are at the enda of Counter offer raises raises Equity/LTI Program candidates than the
their notice period requisition

FY 2021 FY 2022
FY 2021 FY 2022

29
Pay rises continue to be the weapon of choice in the war to attract and retain talent. While it can be an effective
tactic in a buoyant market, recruiting across industries is at an all-time high right now and simply throwing money at
talent is not enough. While cash used to be king, if you are not at the very top end of salary offerings, then the extra
money is unlikely to hold much sway. While many organisations are focusing on pay increases and matching mar-
ket-leading compensation, but this alone is not sufficient nor is it sustainable in the long run. Industries and compa-
nies that focus on the cravings of their talent will win in the long-run and therefore make savings in training and new
hire costs. Those that remain blinded by simply playing bank or bust may soon wake up to a mass exit.

Measures taken by organisations to attract and retain talent

On an average, firms are giving out an

increase of up to 10% on competing offers
to attract talent

In response to higher attrition and hiring

challenges, organizations are offering se-
lective market corrections apart from regu-
lar year-end increases

High base salary increases remains the

most used element to attract new talent

While many organisations are focusing on pay increases and

matching market-leading compensation, but this is alone is not
sufficient nor is it sustainable in the long run.

30
Key Attrition & Retention Drivers

Top reasons for voluntary attrition

External inequity of Limited Growth Nature of Work Internal inequity of

Compensation Opportunities Compensation

2022 1 2 3 4
2021 1 2 4 3
2020 1 2 4 5
2019 2 1 4 7

Attrition drivers:

Given the entire demand and supply gap prevalent
in the market, not surprisingly External Inequity of
Compensation. This means that as an employee, I’m
aware that there are organizations willing to pay a
significant differential on my current compensation, and
financial well-being dictating the employee preferences
post a pandemic impacted year, driving employees to
jump ships.
The next one is Limited growth opportunities which also
happens to be amongst the top 4 reasons. The baseline
for employees has become steady income and growth
opportunities.
But interestingly and also as a corollary of what’s
happening in the market is the 4th reason themed around
Internal inequity of compensation. this could be directly
attributable to some actions organizations have been
taking to retain and attract talent. With significantly high
attrition numbers and the pressure to meet demand,
organizations have opted to look beyond the existing
compensation ranges and have started fitting in external
talent basis their compensation – and inevitably, the
moment you start getting in hires with a similar skill set at
a much higher cost, there is a gap created for the internal
employees leading to them looking at it from a point of
view that they don’t want to miss the bus or also that the
organization is not treating them fairly for their acquired
skills, which has led to a lot of strife and resentment in
them, ultimately resorting to looking out.

31
Top retention drivers

Recognition Fair & Equitable Work Life Balance Telecommuting/

Treatment in Rewards Other Flexible Work
For all Emplioyees Arrangements

2022 1 2 3 4
2021 1 3 2 -
2020 2 3 1 -
2019 3 5 4

Retention Measures:

As a direct response to these attrition drivers,
organizations that have a highly competitive recognition
program and have done a better job around internal
inequity have seen better results in retaining employees
Hence it is no surprise that the number one reason for
retention is “Recognition Awards (Monetary/ Non-
Monetary)” and “Fair & Equitable Treatment in Rewards
for all Employees” is number two on the list. Be it in the
form of one-time payouts, leveraging equity programs, or
off-cycle increases are options that multiple organizations
have or are willing to explore. Hence the story of
compensation stays prominent even from a retention
perspective.
Interestingly where some employees have been quoting
stress and long working hours as a reason for looking
out “work-life balance” has secured a place in the list as
the third most important tool for retaining employees. A
lot of organizations are striving to emphasize Work-life
balance, wherein the employees feel in control of how
they balance the various demands of all aspects of life to
enable well-being, thus promoting “happiness, fulfilment
and job satisfaction”. This has also meant organizations
have adopted unique practices like no meetings Fridays,
4-day weeks, and Flexi working timing.
Amongst the other factors that Have had more success
when it comes to retaining people is Telecommuting/
Other Flexible Work Arrangements, which is an important
indicator of the times we live in. Firms have adopted these
measures to expand their talent pipelines and promote
flexible working.

32
4 Pay for
Performance

33
Pay for Performance Highlights

14.5%
Average variable
36.0%
Employees in the
(bonus) payout in 2021 top two performance
rating categories

Sectors with highest variable payout

Financial FMCG/FMCD Professional

Institutions Services

1.7X
Salary Increase Multiplier
for top performers

34
Pay for Performance
Variable payouts in 2022 (for the performance year 2021-22) were
reflective of the recovery across sectors as these numbers touched
pre-pandemic highs. Most organizations saw an upward revision in their
business forecasts and variable payout plans as the year progressed.

Variable Payout Trends

A sectorial view of the variable pay numbers show that the
services industry with sectors such as financial services,
professional services, IT enabled services amongst oth-
ers, largely driven by a better-than expected performance
saw an average payout of 15.2% in 2022 compared to
11.7% in 2021.
of an improved performance in sectors such as engineer-
ing manufacturing, energy and automotive manufacturing
with an average payout of 13.2%, an increase from 2021
with 12.9%.

The manufacturing industry also did better on the back

Historical trend of average variable payouts (as % of total fixed pay)

16.6 16.1
15.1 15.3 15.3 15.2
15
14.5

13.2 13.4

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

35
 Variable pay plans continue to be effective tools for employers to
incentivize the right behaviors and outcomes. Top management with
the maximum opportunity to influence business has the maximum
percentage of pay at risk.

Variable pay as per levels of management

24.1%
23.4%

20.2% 20.2%

17.0% 17.2%
14.4% 13.8%
11.4% 11.4%
10.4% 10.3%

Top/Senior Management Middle Management Junior Management

2019 2020 2021 2022(A)

Linkage of variable pay plan to

performance increases as one
goes up the hierarchy and so
does the component dependent
on business performance. Thus,
the major impact of a pandemic
hit year is visible on top
management employees. Most
organizations have exercised
discretion while making bonus
payouts and have looked at
minimizing the impact at the
junior levels.

36
 Variable Pay Practices

“ Organizations are adopting a mature approach to Variable pay,

acknowledging the impact of uncertainty and adapting to needs of
an increasingly younger and remote workforce.

Variable Pay Plan Practices

Plan changes for 2021 No Change Increase Decrease

23%

Performance goals

77%
10%
Eligibiltiy/Coverage of
Employee Groups
88% 2%
16%

Funding
82% 2%
14%
Individual Performance
Component
83% 3%
2.0%

Payout Frequency
97% 1%
28%
Communication/
Training
72%
13%

Targeted Payout

86% 1%

A key tenet of this approach was more transparency and greater communication around rewards decisions.

Significantly, 28% of the organizations revisited their variable pay communication philosophy and invested in manager
trainings to ensure the appropriate messaging was getting cascaded down across levels.

37
Sector wise Variable Pay
2022 Actuals
Actual Variable Top Middle Junior
Industry
Payout 2022 Management Management Management
Overall India 14.5 27.0 17.4 8.9
Manufacturing 13.2 25.2 19.1 11.1
Services 15.2 28.3 19.8 9.4

Aerospace 20.0 39.2 27.0 16.8

Automotive/Vehicle Manufacturing 11.5 22.0 15.6 8.6
Auto Producers 14.4 27.1 16.5 11.4
Auto Suppliers 7.1 13.4 10.3 5.0
Energy(Oil/Gas/Power) 13.1 24.6 15.9 8.6
Power 13.0 24.7 15.4 10.4
Oil/Gas 13.2 25.7 15.8 9.6
Renewables 13.4 26.0 19.2 11.4
Engineering/Manufacturing 13.8 26.6 20.0 11.6
FMCG/FMCD 16.9 20.0 18.0 13.9
Durable 10.4 19.3 14.3 7.9
Non-Durable : Foods, Beverages,
Tobacco, Personal care, Wellness 18.3 25.7 18.9 14.7
Metals & Mining 16.9 32.0 19.0 14.2
Life Sciences 11.6 17.5 12.5 8.9
CRO 15.1 27.8 18.0 9.1
Pharmaceutical 12.5 16.1 11.7 9.0
Medical Technology 11.0 24.0 15.8 10.5
Chemicals 17.6 32.4 26.4 14.0
Cement 10.0 19.5 12.0 7.3
Engineering Services 10.9 20.7 11.9 7.7
Other - Manufacturing 6.7 12.8 7.4 4.3
Financial Institutions 23.5 36.1 26.9 20.0
Banking 19.3 39.4 24.5 15.5
Wealth Management 22.3 42.6 26.7 18.3
Funds/Asset Management 24.6 45.0 28.9 15.3
Investment Banking 31.4 47.8 35.0 25.8
NBFC 15.4 30.3 17.8 10.8
Life Insurance 20.7 29.5 21.7 15.1
FinTech 16.8 23.8 16.6 10.3
Hi Tech/Information Technology 13.9 26.5 15.6 12.1
Software Products 14.2 27.7 18.8 9.3
Application Services/Consulting 14.4 26.8 20.1 9.3
Semiconductors 5.5 10.0 6.4 3.4
Start-Ups 12.9 24.1 15.2 8.6
IT Enabled Services 14.2 27.3 18.2 11.6
Other Captives 13.2 26.4 17.2 11.7
Third Party Service Providers 16.8 33.4 23.6 10.1
KPO 13.2 24.6 19.6 9.0
BFSI Captives 13.6 26.9 15.4 11.0
E-Commerce 10.0 18.5 14.9 6.6
Entertainment & Media 13.5 24.9 17.5 11.7
Retail (incl. Wholesale & Distribution) 17.0 32.3 21.3 11.8
Transportation Services/Logistics 6.3 11.4 9.0 3.8
Telecommunications Services 11.3 21.5 12.5 7.5
Professional Services 14.0 27.0 16.1 11.4
Real Estate/Infrastructure 15.5 30.4 21.2 13.0
Other - Services 20.0 37.0 28.6 16.7
Hospitality/Restaurants 16.2 24.5 17.0 12.6

38
Salary Increases and Performance
Performance Distribution and Salary Increases 2022

Overall Salary Increase by Performance Rating

Distribution of Salary Increase by employee groups

Expectations

Often did not

Expectations

Expectations

Expectations

Expectations
Exceeded

Exceeded

Did not
Often

Meet

Meet
Met
Far

48.5%
24.7%
% Employees
All
Employees 11.2% 7.5% 3.9%

% Increment 13.1% 11.3% 7.8% 3.3% 1.1%

36.2%
29.0%
Top Executives/ % Employees
11.9%
Senior
4.1% 2.3%
Management
% Increment 8.8% 8.3% 7.2% 1.8% 0.8%

40.4%

% Employees 31.4%
Middle
12.2%
Management 5.3% 2.4%

% Increment 11.4% 10.2% 8.7% 2.4% 1.0%

38.6%

% Employees
Junior 25.6%
Management/ 9.4% 6.7%
3.0%
Prof/Supervisory
% Increment 14.1% 11.9% 9.0% 4.5% 2.3%

39
Performance Bell Curve for 2021-22
Differentiated increments and performance ratings

High risk to reward ratio for India Inc. is a continuing trend and the performance bell curve for 2022 follows a similar
theme from 2021. Top rated employees stand to see salary increase budgets to the tune of 15.5% against 9.1% for
employees rated as Met Expectations. We also see a very low percentage of population in the bottom two categories
which is usually a sign of a high growth scenario.

15.5%
13.1% 12.7%
11.3%
7.8% 9.1%

3.3% 2.7%
1.1% 0.5%

Far exceeded Often exceeded Met Often did not Meet Did not Meet
expectations expectations expectations expectations expectations
10.8% 27.6% 53.5% 7% 2.8%

1.7X 1.4X X 0.3X 0.1X

Ratio of the % increment given to top performer vs increment given to avg performer

40
Employee Distribution by Performance

Organizations in 2022 see a higher percentage of the employee

population in the top two rating categories on the back of improved
business performance and a need to retain talent amid a raging war
for talent.

Pay for Performance

Higher differentiation in performance leading to a sharper bell-curve

Employee Performance Differential Performance Pay Differential

Horizon 3 (2005 -2010) 10.1 29.4 52.5 8.1 1.3X

Horizon 2 (2011 -2015) 9.0 24.7 54.4 11.9 1.6X

Horizon 1 (2016 -2019) 7.4 23.5 55.3 13.8 1.7X

2020 9.7 23.3 55.9 11.0 1.6X

2021 11.2 24.7 48.5 11.5 1.7X

2022(A) 10.8 27.6 53.5 9.8 1.7X

Far Exceeded Expectations Exceeded Expectations Met Expectations Did not Meet Expectations

Over the last few years, more and more firms are moving
away from a fixed rating fitment curve to provide flexibility
to managers and to allow for adjustments as per actual
business performance. This has led to a variation in the
percentage of population being parked under various
rating categories. In bad years we lower percentages of
population in the top two ratings. Conversely, in a strong
year, we typically see a higher percentage of population in
the top two performance rating categories.
We see organizations piggyback off improved business
performance and an ongoing talent war, thus parking
a higher percentage of the population in the top two
categories.
The performance differentiation number is calculated
as the ratio of salary increase for top performers to
employees meeting expectations. The improvement in
business performance also meant 2022 was a good year
for top executives with the highest percentage of top
performers being identified at the top management level
while the lowest percentage being at the bottom of the
pyramid.

41
Sector Wise Performance Bell Curve
2022 Actuals

Far Exceeding Often Exceeded Met Expectations Often Did Not Meet Did Not Meet
Expectations Expectations Expectations Expectations
Industry
% Salary % of % Salary % of % Salary % of % Salary % of % Salary % of
Increases Employees Increases Employees Increases Employees Increases Employees Increases Employees
Overall India 15.5 10.7 12.7 26.9 9.1 52.8 2.7 6.9 0.5 2.8
Manufacturing 13.8 9.4 11.4 25.9 8.9 54.3 2.6 7.5 0.6 2.8
Services 15.9 11.7 12.6 28.2 9.0 50.9 2.5 6.7 0.5 2.5

Aerospace 15.9 9.6 12.2 24.7 8.2 59.0 0.0 6.7 0.0 0.0
Automotive/Vehicle Manufacturing 14.8 7.8 12.0 29.6 9.4 54.0 3.7 7.1 0.9 1.5
Auto Producers 15.2 8.3 12.8 23.4 10.2 57.4 5.4 9.0 1.6 2.0
Auto Suppliers 14.1 8.2 10.9 26.9 8.6 55.4 4.3 7.6 1.0 2.0
Energy(Oil/Gas/Power) 15.6 4.4 11.8 19.4 7.7 69.5 0.0 5.3 0.0 1.4
Power 16.8 4.3 11.3 19.9 8.3 69.8 0.0 4.6 0.0 1.3
Oil/Gas 17.2 4.9 11.9 20.4 7.5 68.2 0.0 5.3 0.0 1.3
Renewables 16.4 4.5 12.9 18.1 7.2 71.3 0.0 4.7 0.0 1.4
Engineering/Manufacturing 14.6 11.2 10.6 30.2 7.8 51.7 2.1 5.1 0.7 1.8
FMCG/FMCD 14.4 7.1 11.5 26.1 8.3 55.9 2.9 8.4 0.8 2.5
Durable 16.1 5.0 12.7 25.5 8.8 57.6 3.3 9.5 1.1 2.6
Non-Durable : Foods, Beverages, Tobacco,
Personal care, Wellness 13.6 7.9 10.9 26.5 8.0 55.2 2.7 8.0 0.6 2.5
Metals & Mining 12.6 13.4 10.1 23.4 7.4 54.4 2.3 5.7 0.0 3.1
Life Sciences 13.6 9.2 12.2 21.0 8.9 61.2 3.8 5.7 0.4 2.9
CRO 14.3 13.9 11.6 7.0 8.6 68.8 0.0 7.0 0.0 3.4
Pharmaceutical 15.3 8.1 12.0 20.8 8.8 61.7 4.8 6.4 0.6 3.0
Medical Technology 15.7 7.8 12.9 27.2 9.2 57.3 2.6 5.7 0.0 2.0
Chemicals 15.7 8.7 11.7 25.9 8.6 55.1 2.2 6.8 0.0 3.5
Cement 11.8 10.2 11.0 34.1 8.4 50.7 5.4 4.9 0.0 0.1
Engineering Services 13.8 9.2 11.9 28.1 8.7 54.0 2.2 7.0 0.0 1.6
Other - Manufacturing 15.1 6.5 12.9 25.0 10.3 50.8 1.7 6.2 1.5 11.4
Financial Institutions 16.6 10.7 14.5 28.3 10.0 49.4 3.0 8.4 0.6 3.2
Banking 15.1 9.9 12.9 28.0 9.3 54.0 1.7 6.4 0.1 1.8
Wealth Management 15.4 8.9 14.3 29.6 10.2 55.6 1.6 4.4 0.1 1.5
Funds/Asset Management 14.9 13.0 12.4 39.6 8.9 35.7 4.2 8.6 0.8 3.1
Investment Banking 17.1 13.5 13.9 37.5 9.6 39.3 7.3 6.6 2.3 3.1
NBFC 16.2 9.9 14.7 25.9 11.0 53.5 3.4 8.4 0.3 2.3
Life Insurance 16.9 9.1 14.0 25.5 8.8 54.6 0.4 8.1 0.0 2.6
FinTech 30.8 13.3 23.5 28.7 15.5 36.1 8.7 12.9 3.4 9.0
Hi Tech/Information Technology 17.1 11.8 13.9 27.6 9.6 51.6 2.6 6.6 0.3 2.3
Software Products 17.2 11.3 15.6 28.0 10.3 52.7 2.3 5.9 0.2 2.0
Application Services/Consulting 16.0 11.5 12.3 26.2 8.6 52.3 2.3 7.3 0.3 2.7
Semiconductors 16.5 16.2 13.3 25.1 11.7 51.9 3.5 6.3 0.4 0.5
Start-Ups 19.0 8.3 14.8 23.4 10.2 57.4 5.4 9.0 1.6 2.0
IT Enabled Services 14.7 12.3 12.2 27.5 8.7 50.8 2.1 7.0 0.6 2.4
Other Captives 14.8 13.5 12.6 26.0 9.1 52.2 1.4 5.6 0.1 2.6
Third Party Service Providers 13.3 11.3 11.6 31.7 7.3 45.6 2.3 8.8 1.0 2.6
KPO 20.1 14.6 15.4 29.6 10.7 46.3 2.3 7.8 1.5 1.6
BFSI Captives 15.7 11.7 11.1 25.1 8.6 55.5 2.2 5.5 0.3 2.2
E-Commerce 17.0 16.4 13.4 29.5 10.0 44.5 2.4 6.7 0.0 2.9
Entertainment & Media 16.5 10.7 11.5 24.3 9.0 59.6 4.0 4.7 0.0 0.7
Retail (incl. Wholesale & Distribution) 14.2 9.4 10.6 25.6 8.8 55.4 4.3 5.6 0.2 4.0
Transportation Services/Logistics 13.9 6.6 9.8 24.9 6.8 50.4 2.0 10.7 0.0 7.3
Telecommunications Services 14.0 12.7 11.3 26.2 8.0 54.7 1.3 4.2 0.0 2.1
Professional Services 18.6 13.8 13.7 25.1 10.3 51.7 5.5 5.1 3.5 4.3
Real Estate/Infrastructure 17.2 9.5 10.9 35.5 7.3 47.5 2.5 6.2 0.0 1.2
Other - Services 14.8 9.3 9.6 19.5 7.1 58.7 1.9 9.8 0.4 2.7
Hospitality/Restaurants 15.2 23.0 12.3 27.0 10.0 47.1 1.2 2.9 0.0 0.0

42
Measuring performance

After many years of hype, we finally witness traction

in companies moving away from traditional rating
scales and adopting innovative ways of assessing
“ The 5-point scale continues
to be the preferred rating
performance. The most common alternate scale for performance
performance differentiation mechanisms are 9-box
grids and continuous feedback. Leading the shift calibration. However, some
are Consumer and ITeS companies, with 17% and
16% of companies reporting moving away from companies are moving away
traditional rating scales respectively. Among other
scales, 6 point scale is prevalent among e-commerce from forced rating scales.
companies. A few companies are also adopting a
2-point scale to identify ‘Doers’ and ‘Stars’.

Prevalence of rating scales across organisations

58%
54%
52%

20%
19%
17%
14% 13%
11% 11%
8% 8%
6% 6%
2%

3-point scale 4-point scale 5-point scale Other scales No Rating scale

2020 2021 2022

43
5 The Great
Resignation

44
The Great Resignation
The Great Resignation rages on in 2022 and is leading to record attri-
tion levels. About 1 in 5 employees quit their jobs in 2022 citing inequity
of compensation, limited growth opportunities and nature of work as
the top 3 reasons for attrition.

Headwinds caused by slowing economy and supply side
disruptions on account of geopolitics and war have had
little impact on “the Great Resignation” with attrition
numbers hitting 20.3% (YTD), marginally lower than
21% in 2021.
The phenomenon can be broken down into 2 major
facets:
leading to a tightening of global financial conditions.
China’s slowdown has been worse than anticipated
amid COVID-19 outbreaks and lockdowns. Geopolitical
shocks and supply chain disruptions further add to the
woes of an already wounded world economy. However,
the economic prospects for India and economies in the
Gulf Region continue to be bright spots in an otherwise
somber outlook.

1. Supply Side shocks
As per the International Monetary Fund, the Global
economy is moving from a world of relative predictability
to one of greater uncertainty. The global economy which
is still reeling from the effects of the pandemic and from
Russia’s invasion of Ukraine is now looking at higher-
than-expected inflation, especially in the United States,
Asia and major European countries. This is consequently
As a result, firms are searching for alternatives to de-risk
and bridge gaps in their supply chains and continue to
look at India as a hub for expansion. As a result, in the
last 12 months, we’ve seen a slew of companies establish
captives in India, contributing to the rising demand
for talent. India continues to be seen as a preferred
destination for growth not just for transactional back-
office roles, but middle and front office roles as well. This
is leading to a strain for top talent.

Attrition Trends
Highest attrition over two decades signifying the impact of great resignation on India

21.0
19.8 20.3
19.3
18.7 18.5
18.1 18.1
16.9 16.4
16.3 16.3 15.8 16.1
15.4 17.5
14.5 14.4 16.5 17.0
14.0 16.2 16.4
13.2 15.7 15.7
15.1
12.3
13.7 13.3 13.5
12.9 13.1

10.5

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Overall Attrition Voluntary Attrition

45
2. Demand Side Shifts

COVID-19 has accelerated the growth of e-commerce
across India. As per FICCI, “Online shopping has
increased significantly in Tier-II and Tier-III cities as well
due to the easy availability of the internet on cheaper
tariffs and restrictions on physical movement during the
time of the pandemic.” According to the IBEF, the Indian
e-commerce market is predicted to increase by 21.5%
in 2022, reaching US$ 74.8 billion in overall market size
leading to a sharp increase in demand for talent.
2021 also saw the growth of India as a hub for start-
ups with over 44 unicorns created with a valuation of
over $93 billion. Net headcounts at India’s unicorns and
soonicorns have risen by over 40% in the last 2 years as
per Economic Times.
Additionally, there has been a secular surge in
organizations from all industries in trying to develop
digital capabilities. Organizations are looking at India
as an R&D and Technology hub and setting up centers
of excellence for top skills such as Analytics, Big Data
Analysis, and Machine Learning.
This has created a supplier’s market, resulting in
significant attrition across levels and functions. Digital
and New age talent groups have seen the highest brunt
of the resignation spree with Technology and R&D roles
seeing the highest talent churn.

Attrition across functions compared to company average

18%
29%
37% 44%

37%

41%
26% 24%

36%

13% 15% 10%

Corporate Support Product development Technology(IT) Relationship

(HR/Finance/Legal) (R&D/Engineering) Management/Business
Development

More Same Less

46
Attrition Highlights
Attrition % Overall Voluntary Involuntary

Overall Manufacturing Services

20.3% 17.1% 3.9% 14.8% 12.3% 3.0% 23.0% 19.6% 4.3%

Ecommerce, Financial institutions, Professional Services and Technology sectors are seeing
attrition numbers above the 20% mark, placing them among the top 5 Sectors by attrition. The
surge in talent demand can be explained by 3 trends –

1
India’s start-up eco-system has really started
to come-off age. Firms which are cash rich and
need tech talent to fuel growth have been hiring
very aggressively leading to a knock-on effect
across the sector.

2
The Indian IT outsourcing sector has come
out relatively unscathed from the pandemic,
demand pipelines are strong which high
utilization.

3
The demand for tech talent is also rising due to
convergence as sector such as manufacturing,
FI and others are also looking at digital
channels for growth.

As businesses look to consolidate, focus on managing employee

costs and as talent demand saturates, we anticipate a slow
decline in attrition over the next 2-3 years.

47
Sector Wise Attrition
(2022 YTD)
Attrition % Overall Voluntary Involuntary

Manufacturing Services
14.8% 12.3% 3.0% 23.0% 19.6% 4.3%

E-Commerce Entertainment and Media

28.8% 24.9% 5.1% 27.7% 21.3% 6.0%

Hi Tech/ Information Technology

Chemicals
21.5% 18.3% 4.0%
12.9% 9.8% 4.0%

Software Products
Life Science
20.0% 16.7% 4.5%
16.9% 14.6% 2.4%

Application Services/ Consulting Professional Services

21.8% 19.3% 3.2% 25.7% 26.0% 2.2%

Semiconductors Cement
11.5% 10.2% 1.4% 15.4% 11.7% 5.5%

Start-Ups FMCG/ FMCD

28.7% 23.0% 7.8% 16.5% 13.8% 2.6%

IT Enabled Services Other - Manufacturing

21.4% 18.8% 3.3% 14.2% 10.7% 2.9%

Other Captives Automotive/ Vehicle Manufacturing

20.0% 17.1% 3.2% 12.4% 10.7% 2.5%

Third Party Sevice Provider Transportation Services/ Logistics

23.0% 19.8% 4.1% 21.5% 25.0% 5.0%

KPO Financial Institutions

24.5% 22.7% 2.4% 29.2% 23.6% 5.8%

BSFI Captives Banking

19.1% 17.5% 3.3% 27.2% 20.0% 6.0%

Metals and Mining Wealth Management

8.6% 7.4% 3.5% 26.4% 22.0% 3.8%

48
Sector Wise Attrition
(2022 YTD)
Attrition % Overall Voluntary Involuntary

Manufacturing Services
14.8% 12.3% 3.0% 23.0% 19.6% 4.3%

Funds/ Asset Management Engineering Services

16.3% 14.8% 2.6% 14.0% 12.5% 2.2%

General Insurance/ Reinsurance Hospitality/ Restaurants

32.8% 24.2% 3.7% 9.4% 8.6% 1.6%

Investment Banking Real Estate/ Infrastructure

21.8% 19.4% 2.4% 23.7% 19.5% 4.3%

NBFC
29.0% 23.9% 6.2%

Life Insurance
50.3% 44.2% 9.8%

Fintech
27.4% 20.5% 8.1%

Aerospace
11.1% 7.5% 0.4%

Telecommunication Services
25.7% 21.9% 4.7%

Engineering/ Manufacturing
11.7% 9.2% 3.0%

Energy (Oil/ Gas/ Power)

14.8% 9.6% 7.1%

Retail (incl. Wholesale and Distribution)

17.5% 16.3% 1.8%

49
6
Key and
Digital
Talent

50
Key and Digital Talent
Focus on High Density Talent
Talent supply pipeline constraints have forced
organizations to rethink their talent strategies. All
CHROs today talk about the need for high-density
talent which essentially means getting more for
every dollar spent. In such an environment the
need to retain key talent becomes paramount. In
the past, investment decisions used to be driven
by the “normal curve” distribution principle. Today
though we see a marked shift from that philosophy
where more and more organizations are deploying
the Pareto principle in their talent planning. The top
20 percent of the firm are seeing disproportionate
amounts of investment. As a thumb rule in the past,
the top 25% of the firms used to account for 35%
of all investments which is now nudging towards
40%.
51
This focus on Key and Digital Talent is also reflected
in the salary increase numbers for these two
segments. On an average key talent has seen a
differential of 1.43x over the India Inc. salary increase
budget with digital following it up closely at 1.49x.
Industries such as Telecommunications Services,
Automotive/Vehicle Manufacturing, Financial
Services, IT Enabled Services and Chemicals are
among the industries that are seeing the highest
differentiation for Key Talent. On the other hand,
industries such as Financial Services, IT Enabled
Services, Hi-Tech, Retail and Telecommunications
Services are differentiating their digital talent most
aggressively.
Salary Increase 2022 (A)

Digital
Overall Key Talent Talent

Represented as

Overall India
10.6 15.1 15.7 Digital talent has been in high-demand
across industries in the last few years.
Engineering Services
This is visible in the salary increments
9.5 12.1 10.0
being offered to digital talent is much
Real Estate/ Infrastructure higher than that of India Inc.
8.7 11.6 9.5

Other - Manufacturing An average digital talent earns a pay-for-

8.7 11.1 9.6 performance differentiator of 1.5 times,
while numbers for key talent are slightly
Metals and Mining lower. Performance differentiation, while
9.7 11.3 10.8
it has plateaued across roles, digital talent
is still highly valued through differentiated
Transportation Services/ Logistics
8.7 9.6 9.8
performance.

Life Sciences
9.8 10.6 11.0 Despite measures by organizations
to retain and reward digital talent, the
Energy (Oil/ Gas/ Power) attrition numbers are still much higher at
9.5 12.4 11.0 23.4% compared to India Inc. at 20.3%.
at This shows that the digital talent market
Engineeering/ Manufacturing
is much more volatile and much more
9.7 11.8 11.6
competitive than non-digital counterparts.
Professional Services
12.4 16.2 15.0

FMCG/ FMCD
9.5 12.6 12.3
Performance differentiation, while it
Automotive/ Vehicle Manufacturing
has plateaued across roles, digital
10.1 15.5 13.5
talent is still highly valued through
Entertainment and Media differentiated performance.
10.6 13.2 14.3

*Data represented for each sector with minimum 10

company responses.

52
Salary Increase 2022 (A)

Represented as

Overall Key Talent Digital

Talent

Aerospace
9.3 12.7 12.9

IT Enabled Services
10.7 15.6 15.6

Retail (incl. Wholesale and Ditribution)

9.9 13.3 14.4

Chemicals
9.6 13.5 14.1

Other - Services
8.7 11.8 12.9

Hi Tech/ Information Technology

12.0 16.4 18.7

Financial Institutions
10.9 16.2 17.9

Telecommunications Services
9.9 15.5 16.7

*Data represented for each sector with minimum 10

company responses.

53
Another striking factor is that in today’s
where all organisations are looking to
capabilities, key talent and digital talent
become synonymous. This is also reflected
similar budgets for digital and key talent
industries.
environment is a significant statistic which also indicates an increasing
scale digital reliance on technology for delivery and a move towards
have almost leaner structures. For a rewards professional, this shows
in the largely how pyramids across the board are changing and how the
across most need to balance the twin priorities of running the business
and transforming the business will go hand in hand.

We are also seeing a change in the make-up of most
organisations. The percentage of population classified as
“Digital” has been steadily increasing. Today almost 21.3
% of the total population across India Inc. is classified as
Digital, whereas 17.5% are classified as Key Talent. This
An interesting case study of this is also seen in banking
captives where we see how over a small period of
just 5 years the break-up of the traditional captive has
undergone a sea change and has increased by 10% to
make up more than 50% of the total headcount.

Role archetypes in BFSI captives

Banking
3% Operations
5% Digital Roles
5% Research Roles
1%
5% Support Roles
8%
Customer Support
Roles
35%
44%

42%

51%

In today’s environment where all organisations are looking to scale

digital capabilities, key talent and digital talent have almost become
synonymous. The percentage of population classified as “Digital”
has been steadily increasing. Today almost 21.3 % of the total
population across India Inc. is classified as Digital, whereas 17.5%
are classified as Key Talent.

54
Skill Premiums

In the past, top skills in a sector used to be closely related
to the domain skills required to succeed in the sector. This
narrative is also changing and the need for Digital skills is
cutting across sectors. The top 5 skills observed across
sectors are all dominated by fields such as analytics and
UI/UX and Application development etc. Data Science has
consolidated its position at the top as the most sought-
after skill across the board. On the other hand, full-stack
development has seen the highest jump from number 7 to
number 2 as organizations go on their individual platform-
building journeys. Architecture related skills then make
up the top 5. In domain-specific areas, skills such as
FEA (finite element analysis), Underwriting, Information
Security and Financial Market Knowledge are emerging
as critical areas.

Digital confluence of top skills across industries

2022 Financial
RANK Manufacturing Institutions Hi-Tech/IT Other Services

1 Data Sciences/Analytics

2 Full Stack Development

3 AI/Machine Learning

4 Cloud Architecture

5 Technology Architecture

FEA (Finite Scrum Masters/ Accounting/CFA/

6
Element Analysis) Underwriting Agile CA

Knowledge of Information Product

7 CAD/CAM/CAE Financial Markets Security Management

More and more organizations are looking for roles that sit
at points of convergence where employees are expected
to marry knowledge of technical skillsets with domain and
market knowledge.
This focus on digital skills and changing employee
demographics is pushing up talent costs and putting up
unsolved challenges for talent teams across the board. As
you move up the value chain in any domain area the skill
premiums that one observes across the value chain from
critical skill to a vanilla skill in the same band can go from
anywhere between 20-30%. A data scientist today can
expect to make more than 50-60% than the professional
maintaining the database. A cloud architect on the other
hand generally commands a 15-20% premium over an
infra-architect.

55
Given the spread of roles and diverse nature of jobs, of key and digital talent for business. At the same time,
rewards professionals will also need to look at skill- range penetration and utilization will be important
based pay. These pay structures will have to be parameters defining the success of these pay structures.
designed to control costs while enabling affordability

Data Data Application Infra

Maintenance Migration Maintenance Architecture

Data Reporting Database Administration System Integration Automation Architecture

(5-7%) (10-15%) (8-10%) (5-7%)

Data Visualization Data Engineer- Big Data Frontend Development Technology Architecture
(10-12%) (10-15%) (20-25%) (5-7%)

Business Intelligence Data Architect Backend Development Security Architecture

(5-10%) (15-22%) (5-7%) (5-7%)

Data Modeling AI/ML Engineer Full-Stack Development Cloud Architecture

(20-22%) (10-15%) (10-12%) (1-3%)

Data Sciences
(10-15%)

(All percentages are increments over preceding skills)

Attrition and Retention Trends for Critical

Talent
In a buoyant talent market, attrition is higher in Key and
Digital talent groups at 23.4 % and 21.6% respectively.
Key reasons identified for attrition remain like India Inc. Critical Talent - Retention
Among the reasons identified, external inequity of com-
pensation and limited growth opportunities hold the top 2
positions with internal inequity and role stagnation mak-
ing up the remaining of top 4 reasons. Interestingly, when
it comes to measures for retention, we see a marked shift
in trends for critical talent. For India Inc, we see mea- Off Cycle Pay Correction
sures such as equity, work-life balance, flexible working
arrangements and leadership accessibility, but for critical
talent these seem to be considered hygiene factors with Pay Above Market
a focus on total rewards and differentiation becoming
apparent. Measures such as off-cycle correction, above
market pay, retention bonuses etc. have been deployed
Retention Bonuses
en masse to retain critical talent.

To summarise, given the margin pressures most sectors

are facing and the current macro environment, critical Recognition Awards
talent poses a very serious challenge for most talent
professionals. On one hand retaining this set is critical
for growth, on the other hand most organizations will be Equitable Treatment in Rewards
operating under limitations doing so. Today in the short-
term giving higher increments during performance cycles
and hiring seems to be the obvious answer but this isn’t
sustainable in the long term. In such a situation, it is im-
perative that organizations also look beyond the obvious
in rewards intervention and try to create an eco-system
where there are other levers for the firm to exercise and
critical talent to feel at home and truly thrive.

56
7
Diversity,
Equity, and
Inclusion (DEI)

57
Diversity, Equity, and
Inclusion (DEI)

One in three organizations are continuing to focus on improving

diversity at Board and Senior Managerial positions

The impetus on Diversity and inclusion has grown beyond more women in executive roles have more than doubled.
headcount, policies, or affirmative actions. By valuing One-third of organisations are continuing to focus on
each team member’s individual needs, viewpoints, and improving diversity in Senior Managerial positions.
capabilities, equitable employers outperform their rivals.
As a result, people who work in diverse and inclusive Morever, Junior, Technical roles and Corporate support
environments show more loyalty and trust. roles have seen a sharp rise in the respondents saying
that it would be a target area.
The mission to improve gender diversity is not limited to
specific levels or roles. It cuts across industries and roles.
Organisations are making a dedicated effort to shatter the
Glass ceiling and the percentage of organisation wanting

Roles/Levels targeted for diversity hiring

40%

35% 36%
33%
32%
30%
28%
25% 25%

20%
17%
15%
14%
13% 12% 12%
10% 11% 11%

5% 7%

0%

Executive Senior Junior Corporate Support Technical Front End Roles Blue collared Roles
Management Management Management role

2021 2022

58
Different Spectrums of Diversity
Percentage of Organizations focusing on various aspects of diversity

47% 46%

19%
16%
15%
11% 12%
9%

Gender Differently Abled Sexual Others-Religion/

Balance Orentation Ethnicity/
Language/Regional

2021 2022

Although Gender takes the limelight, there are other
aspects of diversity that organizations have started
venturing into. The start-up culture has driven the
average age of the new age sector down drastically.
With organizations placing increased emphasis on
fresh perspectives and out-of-the-box thinking, there
is a greater shift in their focus toward improving Age/
Generation/Millennial diversity.
the two fastest-growing domains for Diversity Practices.
Organizations have started to tie up with NGOs and Skill
Development Centers to streamline the talent supply for
these sets of employees. Religion and Ethnicity have
seen a growth of 33% in the number of organizations
that focus on it. Multi-location presence and multi-lingual
platforms make it inevitable for Organizations to chart out
plans for this spectrum of diversity.

With Organizations Maturing with their systems and

process, Differently-abled and Sexual Orientation are

Current and Target Diversity Ratios

29.9

23.6

21.6

7.8

4.5
4.1 3.6
3.5 3
2.6
1.9 2

Gender Balance Differently Abled Sexual Orentation Others-Religion/

Ethnicity/
Language/Regional

2021(A) 2022(A) Target

59
Current state of Gender Diversity

Highlights
Gender Diversity Ratio Actual Diversity Target Diversity
Ratio Ratio

“
India Inc.
23.6% 29.8%
Although DEI has been
of strategic importance
Manufacturing
16.9% 24.4%
to India Inc. the
manufacturing sector
Services still struggles to keep up
26.9% 32.6%
with the trend.
Top 5 Sectors
Gender Diversity Ratio Actual Diversity Target Diversity
Ratio Ratio
IT Enabled Services
32.0% 36.1%
Inclusion and Diversity have been among
the top priorities of India Inc. with almost
all sections having aggressive targets for
Retail (incl. Wholesale and Distribution) various aspects of diversity with a special
28.0% 35.8% focus on Gender Diversity. The top 5
sectors have a majority representation of
Hi Tech/ Information Technology the Services sector, however, the bottom
26.3% 32.7% 5 has predominantly been from the
Manufacturing Sector.
Ecommerce
25.0% 35.0% The Tech and Services sectors have
seen to have very strong DEI roadmaps,
and EVP strategies to attract and retain
Financial Institutions
women in the workforce. Although DEI has
22.5% 25.3%
been of strategic importance to India Inc.
the manufacturing sector still struggles to
Bottom 5 Sectors keep up with the trend. Lack of structured
Gender Diversity Ratio Actual Diversity Target Diversity return-to-work programs, slow growth,
Ratio Ratio and lack of infrastructure are the key
Engineering/ Manufacturing
drivers for women to not take up jobs in
8.8% 15.9% the sector. Considering the Responsible
Practices analysis part of the survey, only
48% of the Organizations highlighted
Transportation Services/ Logistics that they have a formal DEI policy in place.
12.0%
8.8% 15.9%
25.0%
This shows us that there is still a long way
to go for India Inc.
Metals and Mining
15.5%
8.8% 15.9%
27.8%

Life Sciences
16.6%
8.8% 15.9%
23.4%

Chemicals
17.7%
8.8% 15.9%
23.6%

60
DEI actions for organizations
Data-driven initiatives in diversity and inclusion can assist
firms in going beyond simple check-the-box activities.
They can use it to evaluate where they’re lacking, gauge
the experiences of groups inside the organization, and
stop staff churn in its tracks. Finding data gaps in your HR
systems is a good place to start with. To help our clients
set realistic targets and learn from each other’s best
practices, we added diversity and inclusion as one of the
key modules. The study also highlights some interesting
practices followed across industries on the initiatives
taken up to make the workplace more inclusive.
Building trust and fostering an environment where people
feel free to express themselves, actively combating bias
and oppressive systems, embracing a variety of voices
and styles within the organization, and using employees’
identity-related knowledge and experiences to determine
how to best carry out the company’s core tasks are four
actions that leaders must take.
The shift from D&I to I&D has been a notable one, laying
emphasis on the fact that Inclusion must take precedence
over diversity or Inclusion is a must for diversity to thrive. As
organizations make concerted efforts to make the diverse
set of employees feel more inclusive, some practices
link Expanding the diversity pool, having unconscious
bias removal programs in place, and creating mentoring
programs continue to be top priorities across the last two
years.

Initiatives organizations are taking to be more inclusive

1 Expanding talent pools for candidate diversity (43%)

2 Communicating clear DEI objectives and commitments (39%)

Implementing measures to increase fairness and reduced

3 adverse impact in employee selection and hiring procedures (30%)

Upskilling programs for leaders to focus on inclusive behaviors,

4 value of diversity of thought (28%)

5 Introducing or expanding unconscious bias training (28%)

6 Creating or enhancing mentoring programs (22%)

7 Using data analytics to measure demographics and talent mobility (20%)

8 Reviewing compensation and benefits programs (20%)

9 Targeted upskilling programs for women/ ethnic minorities (18%)

10 Taking action on commitments to achieving pay equity (16%)

11 Utilizing apprenticeship/ mentorship programs (13%)

61
 Environmental,

8
Social, and
Governance
(ESG)

62
Environmental, Social,
and Governance (ESG)
72% of the responding organizations have a defined ESG roadmap,
with manufacturing outpacing services on ESG adoption.

With the Regulatory environment ramping up and Growing Over the years, there has been a rise in businesses that
investor demand ESG compliance is now at the heart of have a well-defined ESG strategy as well as short-term
organizations’ operations. and long-term roadmaps.

In the war for talent and with rising employee Manufacturing organizations are significantly ahead of
conscientiousness, a company’s ESG credentials are a their services peers in terms of ESG adoption given the
key component in the fight to attract and retain talent. large focus on minimizing the environmental impact and
carbon footprint of these firms.

Prevalence of ESG roadmap or strategy across organisations

Have defined well defined ESG roadmap 72%

Do not have an ESG roadmap, but plan to have one in

the near future 25%
Do not intend to have a ESG roadmap even in the
future 3%

63
 Sectors with
Top sector highest
which haveESG
defined Sectors with lowest
Bottom sector whichESG
have defined
adoption
ESG roadmaps adoption
ESG roadmaps

Automotive/Vehicle Manufacturing E-commerce

Energy(Oil/Gas/Power) Retail (incl. Wholesale & Distribution)

FMCG / FMCD Professional Services

Foreign-owned
Foreign owned and JVcompanies
or JV companies are
are slightly
slightly ahead of Despite lack
the oflack
ESGof reporting
ESG reporting standards,
standards, there isthere
growthis
their local peers on the ESG adoption curve. Outside of growth in the number
in the number of firmsof that
firmspublish
that publish quantifiable
quantifiable ESG
the large-cap and MNC companies, most companies are ESG performance
performance data.
data. As perAsourper our nearly
survey survey,two-thirds
nearly two-of
navigating where to start on ESG, moving from a tactical thirds of the companies
the companies report outreport their&ESG
the ESG DEI & DEI metrics
metrics either
to a practical approach. either
throughthrough a Business
a Business Responsibility
Responsibility Report orReport
publishorasbya
publishing it asreport.
part of annual a part of the annual report.

How are companies reporting on ESG metrics

Publish an annual sustainability / Business responsibility/

Integrated report 33%
Report some of the ESG & DEI aspects on our company’s
Annual Financial Report or Website 33%

Do not report currently 35%

64
Quantifying ESG performance
“ There is a significant focus on ESG planning, but are companies
walking the talk?
While ESG reporting aims to shed light on a company’s
ESG activities and improve investor transparency, ESG
performance will depend on the actions that organisations
take.
Tying executive compensation to ESG is gaining
momentum, but only about 37% of companies
have a formal ESG linkage to their Senior leadership
compensation. Most companies are not far enough in
Prevalence of policies across organizations
Code of Conduct policy
Data Privacy/Cyber Security policy
Anti-bribery and Anti-Corruption Policy
Health & Safety Policy
Diversity & Inclusion
Environment Policy
65
their journey to set a meaningful goal with formal weights
until ESG metrics are measured comprehensively.
Implementation of key policies is also a good barometer
of a company’s intent on improving its ESG performance.
The majority of companies have in place the key policies
around governance and security. But only a little over half
have gone the extra mile and introduced policies on DEI
and Environment.
89%
87%
79%
74%
66%
54%
Moving up on ESG maturity
ESG management has been a primary area of focus
for institutional investors and advisors. Large investors
expect companies and their boards to be able to articulate
an ESG strategy and disclose key metrics.
While the regulations are still evolving, ESG metrics should
be tailored to each individual company’s context and ESG
priorities and tied in with existing pay incentives. Just as
every Company develops its approach to addressing ESG
risks over time, so does each Company follow its own “ESG
maturity curve”. For many companies, a focus on DEI and
HCM strategy, goals, and disclosures may be one of the
early steps in their journey. Board oversight on key topics
and formalizing the charter of ESG duties is essential to
ensure strong governance around ESG adoption.
While an organization may consider some steps further
along the curve before others, there is a usual ESG
progression that organizations can employ to determine
their current maturity and define the next steps.
Four goals are needed to meet stakeholder expectations
located across the top: identification, addressal,
accountability, and transparency.
The four categories of activities located across the
bottom—engage stakeholders and identify relevant ESG
topics, set goals and track progress, communicate and
disclose progress, and continually adjust—summarize
how to achieve ESG goals.
And finally, communication with relevant internal and
external stakeholders is key throughout this journey of
scaling up on ESG.

ESG maturity curve

Identify Address Accountability Transparency

ESG metrics tied to Executive Compensation

ESG business strategy integration
Dedicated ESG report and/or webpage
Proactive Stakeholder Engagement
Utilization of ESG reporting framework (SAS13, GRI, TCFD)
Commitment to ESG Pledges and/or Coalitions
Ongoing board education on ESG related topics
Integrated disclosure of ESG strategy/progress (Annual Report, Website)
Standardized metrics & goals to measure & collect data
Formal board/committee oversight of ESG strategy & accomplishments
Diversity, Equity & Inclusion, Human Capital Management, and Supply Chain strategies
ESG Dashboarding, including peer benchmarking
CSR Reporting & Philanthropic Initiatives

Engage Stakeholders & Set Goals & Communicate & Continually Re-Evaluate
Identify Material ESG Topics Track Progress Disclose Progress & Adjust

66
9 New Ways of
Working

67
New Ways of Working
Last 6 months have witnessed a sharp dip in the percentage of
organizations working virtually, with a majority of the organizations
migrating to a hybrid working environment.

The lingering impact of the pandemic, rapid evolution
of technology, changing sociocultural behaviours and
demands, regulatory headwinds, economic volatility, and
other intrinsic challenges all continue to impact our work,
workforce, and workplaces.
One of the most significant shifts that this volatility has
thrown up is the expectation and widespread acceptance
of flexibility at work - not just where but when and how
work is done. Organizations are therefore experimenting
with and adapting agile and new ways of working to
manage a more fluid and dispersed workforce and to
meet the diverse needs of employees.
Our survey shows that while there has been a sharp dip
in the percentage of organizations working virtually- from
38% to 9%, a majority (68%) of the organizations are
now working in a hybrid mode.
While on one hand there has been a push towards a return
to work with a need to establish employee connect and
belongingness, drive innovation and rebuild culture, on
the other hand, the great resignation and talent scarcity
is forcing organizations to take cognizance of employee
needs for continued flexibility.
Our survey shows that the attrition for organizations that
announced a return to office in the next few months stood
at a high of 29% compared to 19% for organizations that
are working in a hybrid or virtual mode.

Current state of return-to-work plans

68%

46%
38%

23%
15%
9%

Currently working virtually Back to office, following Already functioning from

Hybrid model office/site locations

Jan-22 Aug-22

68
Attrition for companies categorized by working model

29%

20%
19% 19%

Already functioning on-site Back to office, following Currently working virtually Returnig to office in next few
Hybrid model Months

It is interesting to note that, 77% of the MNC’s continue to be in hybrid or virtual mode as compared to 47% of local
organizations, driven largely by global guidelines and policies and by commitments to embed flexibility as part of their
employee value proposition for the future.

Only 12% of the MNC’s have mandated a full return to office as against 35% of locally owned organizations.

Prevalence of Working Models by ownership and company size

Locally owned company 35% 37% 10%

Prevalence by
Joint venture company 33% 49% 9%
ownership

Foreign owned company 12% 69% 8%

Above 5000 24% 51% 5%

Prevalence by
1,001-2.000 19% 58% 6%
company size

Under 1000 20% 54% 13%

Functioning on-site Hybrid Model Working Virtually

A significantly higher proportion of smaller organizations (under 1000) are working virtually, enabling them to save
costs and leverage a dispersed talent pool, including gig workers.

The Convergence of social and work life has led to a blurring of professional and personal boundaries and has brought
to the forefront conversations on mental health, well-being, and inclusive benefits.

From gender-inclusive childcare policies like special allowances for new mothers and enhanced paternal leave, to
additional time off, increased insurance covers, and an array of wellness programmes, organizations are doubling
down to make health and wellness a priority and build employee resilience.

69
Evolution of benefits
How are companies augmenting their Total Rewards in Light of New working models?

65%
Companies have introduced mental
31%
Companies have introduced mental
wellness programs / stress management wellness programs / stress management
and counselling and counselling

46% 69%
Companies are providing creche/day-care
Companies have increased insurance facilities through In-house facilities,
cover for self or dependents External tie-ups or reimbursements

53% 40%
Companies are providing Relocation
Companies have provided allowance for Assistance to employees returning to
Home Office set-up office

71%
Companies Have introduced an
Employee Financial Assistance program
or have increased the cover/ quantum of
support

70
10 Conclusion

71
Conclusion
Our perspective on the Road Ahead

Sustained euphoria around the war for talent and high salary growth
continue being looming challenges for businesses. Organizations
will have to be agile and creative to manage cost pressures, sustain
margins and at the same time attract and retain talent.

Navigating the volatility:

As the pandemic recedes, we have seen a strong business rebound with firms, having quickly learned and adopted
to work in an uncertain environment.

We believe that while such similar black swan events might be far and few in-between, but the volatility will persist
and will be an integral input into how firms operate. While India Inc has shown great resilience so far, there are
immediate challenges such as high inflationary pressures and political uncertainty.

Organisations need to build in plans that enable them to navigate the volatility, solve for any future business threats
and ensure long term sustainability. To protect their business interests, they need to:
• Optimize investment in talent
• Look at a build model for the long run
• Cultivate an Agile workforce mindset
• Build a decision framework for leadership

War for talent:

A large portion of the war for talent has been about acquiring digital skillsets for both new age and traditional
sectors. With supply struggling to keep pace with demand for these skills we expect the war for talent to continue to
drive up people costs and attrition numbers.

Moonlighting and Quiet quitting have also emerged as a recent phenomenon that demands the attention of
employers. Moonlighting is fueled by the buoyant demand for tech roles and aided by employees having the
flexibility to work from home. While the industry is at odds on how to manage it, but we may see higher involuntary
attrition if companies decide to clamp down on it. Quiet quitting on the other hand has emerged as a counter to
post-pandemic burnout that a large chunk of employees is experiencing in an always-connected workplace.

To solve for this we expect companies to :

• Look for innovative models to expand talent pools like Flexi-work and Gig jobs.
• Hire for skills rather than roles.
• Retain their workforce by re-evaluating their EVP through total rewards offerings.
• Define suitable measures to respect the work-life balance of employees.

72
Continued Resilience:

Emerging from the pandemic, organizations have learned to operate under uncertainties. Businesses that have
resilience in their DNA are the ones that are able to weather storms better and come out ahead of the competition. A
resilient organization also comprises of resilient employees who feel secure, productive, and motivated in their jobs,
and can rapidly adapt to change.

Strategic investment in people initiatives including ESG & DEI, driven by clear, compassionate, and visible
leadership, and empathetic dialogue between employer and employee is critical to delivering workforce resilience.

After the great pandemic reset firms are presented with an opportunity to build a lasting change in the way they
work.

Key to long-term success would encompass:

• Building resilience as a core part of workplace culture
• Defining the future workforce model
• Greater focus on ESG & DEI

Challenges and Way Forward for Rewards

Professionals

Rewards Professionals are facing a tough time in striking a balance

between internal equity and external competitiveness in this volatile
talent market

Attrition has peaked over the last decade. Additionally,
businesses are jump starting and attaining stability after
a 24-month long wait amidst the covid crisis. As a result,
the role of rewards professionals has become very critical
in handling the situation of never-ending hikes and offer
declines. Rewards professionals find themselves in a fix
of external catchup to the market and realigning their
internal medians to have parity.
2022 has also seen multiple mid-year corrections and
one-time payouts. It has witnessed just-in-time market
benchmarks for organizations to align their Rewards
Philosophies. Although Rewards seem to be a short-term
moat to this guerilla warfare for talent, organizations have
consequently started working on long-term sustainability.

73
 Access to accurate
and timely market
data
Raising the
Differentiating abil of managers
ity
rewards for to have effective pay
key talent conversations

3
with their team

Maintaining
2 4 Addressing the
market diverse needs of
Rewards
1 5
competitiveness your workforce
of pay levels
Challenges
2022 Ranking

To sum it up, with threats of looming slowdown in the beginning of FY 2022, Rewards professionals cannot win the
war for talent on cash alone. With Margin Pressures being high for the coming year, it becomes inevitable for Reward
Professionals to work on the intangibles such as providing a Rich Employee Value Proposition, Long term career
growth through better quality of work and frequent role rotations along with focused approach on Succession planning
for Business-critical roles.

Priorities for talent professionals

Revamped Job
EVP Rotations

Quality of Succession
Work Planning

74
 x

Appendix

75
LIST OF PARTICIPANTS
Aerospace
Adani Ports and SEZ L3Harris Technologies
BAE Systems Lockheed Martin Corporation
Cubic Corporation Mahindra
Curtiss-Wright Corporation Meggitt
GE Aviation Moog, Inc
General Atomics Raytheon Technologies Corporation
GMR Safran
Godrej Tata Advanced Systems Ltd.
Honeywell India

Automotive/Vehicle Manufacturing
AAM India Manufacturing Corporation Mahindra Trucks and Buses
AB Volvo Group Mitsubishi Electric Automotive India
Adient MRF
Aditya Auto Products & Engg. Oshkosh Corporation
Amara Raja Batteries Peugeot Motocycles
Asahi India Glass Polaris Industries
Ather Energy REHAU India
Bajaj Auto Renault Group
Birla Carbon Renault Nissan Automotive India.,
Bosch ROHM Semiconductor
Caterpillar Royal Enfield (unit of Eicher Motors )
Continental India SCOOT
Cooper Standard Somic ZF Components
Cummins Inc Stellantis
Daimler Truck Innovation Center India (DTICI) Sundaram Clayton
Dana India Sundram Fasteners
EPC BY Mahindra Swaraj Tractors
Fiat India Automobiles Tata Motors
Garrett Advancing Motion TDS Lithium Ion Battery Gujarat
General Motors The Goodyear Tire and Rubber Company
Graco Toyota Kirloskar Motor
Gromax Agri Equipment TVS Mobility
Hendrickson UD Trucks
John Deere Varroc Engineering
JTEKT India VE Commercial Vehicles
Magna Vitesco Technologies
Mahindra Agri Volvo Group India
Mahindra Automotives VST Industries
Mahindra Spares Yamaha Motor India
Mahindra Tractors ZF Friedrichshafen AG

76
Cement
ACC Cement JK Cement
Adani Cement JSW Cement
Ambuja Nuvoco
Bharathi Cement Corp Ramboll
Century Cement Saurashtra Cement
Cochin Cement Singha Cement
Dalmia Cement Star Cement
Gujarat Sidhee Cement UltraTech Cement
Gulburga Vedanta Cement
Heidelberg

Chemicals
Aditya Birla Chemicals Godrej Agrovet
Air Liquide H.B. Fuller Company
allnex Honeywell India
Amazon Papyrus Chemicals IMCD India
Ashland Global Holdings Jotun India
Aspen Aerogels, Inc. Kluber Lubrication
Avient Laxmi Organics
Axalta Coating Systems India Linde South Asia Services.
BASF India Lyondellbasell
Birla Carbon Momentive Performance Materials
Cabot Corporation NewMarket Corporation
Connect Chemicals India SABIC
Corteva Agriscience Sachem, Inc
Covestro Seedworks International
Deepak Fertilisers And Petrochemicals SRF
Corporation Syngenta AG
Ecolab Food Safety& Hygiene Solutions India. Toyo Ink India
FMC Vertellus Specialties UK
Givaudan W.R. Grace

Chemicals
Agoda Meesho
Alamy Images India Nykaa
Alibaba Group Saks OFF 5TH
Amazon Development Center Urban Company
Chegg, Inc. Zomato
Cimpress India
Dunzo Digital
Ebay
Expedia Group
Ferns N Petals
Flipkart Internet
Kiranakart Technologies
Larsen and Toubro SuFin

77
Energy(Oil/Gas/Power)
Adani Green GE Power
Adani Power GE Renewables
Adani Solar Cell Manufacturing GMR
Adani Total Gas Godrej
Adani Transmission Helmerich & Payne, Inc.
Air Liquide Honeywell India
Aker Solutions JSW Energy
Apraava Kohler Co.
Baker Hughes Linde South Asia Services Pvt Ltd.
BLOOM ENERGY Mcdermott
British Petroleum Premier Energies
Burns & McDonnell Sterlite Power
Canadian Solar Wood India Engineering & Projects
First Solar
Fortum

Engineering Services
Air Liquide Linde South Asia Services.
Aker Solutions Louis Berger Consulting.
Baker Hughes Mcdermott
Bechtel India Ramboll
Burns & McDonnell Rogers Corporation
Cambium Networks SiFive
Fluor Daniel India SNC-Lavalin
Godrej TATA Consulting Engineers
Hitachi India Wood India Engineering & Projects
Honeywell India Worley India
ImageGrafix Software Solutions WSP INDIA
Jacobs Engineering

Engineering/Manufacturing
ABB Howden
Barry Wehmiller Hubbell Inc.
Carborundum Universal Husky Technologies
Caterpillar IDEX Corporation
CDM Smith Ingersoll Rand
Century Group Johnson Controls
CG Power and Industrial Solutions Karl Mayer Stoll India
Cummins Inc Kohler Co.
Daimler Truck Innovation Center India (DTICI) Larsen Toubro
Ecolab Inc Lennox International Inc
Elkem South Asia Littelfuse, Inc.
GE Mahindra Construction Equipment
GKN Fokker Elmo Masco
Honeywell India Murata Electronics India

78
Nordson Corporation SPX Flow, Inc.
On Semiconductor Terex India
Otis Worldwide Corporation Thyssenkrupp AG
Rockwell Automation Timken
Rogers Corporation TPI COMPOSITES INDIA
Schaeffler Trane Technologies
Schneider Writgen
SKF India Xylem Inc
Socomec Zetwerk Manufacturing Businesses

Entertainment & Media

Aristocrat Technologies India
Electronic Arts
Entertainment Network (India)
Lionsgate India
NBC Universal
PVR
Zee Entertainment Enterprises

Financial Institutions
ACI Worldwide CME Group
Aditya Birla Finance Coinbase
Aditya Birla Sunlife Insurance Co CPP Investments
ADV Partners CredAble
Aegon Life Insurance Crédit Agricole
Ameriprise Financial Credit Suisse
Angel One CSB bank
Assurant, Inc DBS India
AU Small Finance Bank Deutsche Bank AG
Aviva India Discover Financial Services
Axis Bank Edelweiss Tokio Life Insurance
Bandhan Bank Encore Asset Reconstruction Company
Bandhan Bank Limited Equirus
Bank of New York Mellon Euronext
Better Mortgage Advisors FalconX
Blackhawk Network FIL India Business and Research Services
BlackRock Finastra
BNY Mellon Fino Payments Bank
BoB Financial Solutions FIS
Bread Financial Franklin Templeton
Broadridge Fullerton India Credit Co.
Canara HSBC Life Insurance Future Generali India Life Insurance Co.
Capital Group Glory Global Solutions (International)
Capital One Goldman Sachs
Caterpillar Financial Services HDB Financial Services
CCIL HDFC Bank
Citco HDFC LIFE
Citibank HDFC securities
CLSA Home Credit India Finance

79
HSBC_Financial Institutions Stripe
ICE Data Services India Sumitomo Mitsui Banking Corporation
ICICI Bank Suryoday Small Finance Bank Limited
ICICI Home Finance SVB
ICICI Prudential Life Insurance Swiss Re
ICICI Venture Funds Management Synchrony
IDFC First Bank Tata AIA
IIFL Wealth Management Tata AIG General Insurance
IndiaFirst Life Insurance Company Tata Capital
Invesco Tata Motors Finance
Jana Small Finance Bank TD Bank Group
JM Financial Temasek International
JM Financial Asset Management Temenos Group AG
JP Morgan Chase & Co. The Bank of Nova Scotia
Julius Baer Toppan Merrill LLC
Kotak Mahindra Bank Toyota Financial Services
Kotak Mahindra Life Insurance Company TransferWise
Lendingkart Finance Transunion
LendingKart Technologies UnitedHealth Group
Liberty Mutual Insurance UNS AG
Link Group UOB
MetLife UPL Financial Services
Moodys Varthana Finance Private
Morningstar Visa Inc.
MSCI Waterfield Advisors
Nasdaq, Inc. Wells Fargo & Company
National Bonds Corporation Western Union
Nomura Yes Securities
Northern Arc Capital ZestMoney
Northern Trust
Nuture Farm
Ocwen
PayPal
Paysafe
Piramal Enterpirses
PNB Metlife
Pramerica Life Insurance
Principal Global Services
pSemi Corporation
Q2
Rabobank
Raheja QBE General Insurance Co Ltd
RapiPay
Reliance Nippon Life Insurance
Religare Housing Development Finance Corp.
Repco Home Finance
Sanctum Wealth
SBI Life Insurance
SBICAP Ventures
SBICAP VENTURES LIMITED
Shriram Housing Finance Ltd
Societe Generale
Standard Chartered Bank
Star Union Dai-Ichi Life Insurance
State street Corporation
StockX

80
FMCG/FMCD
AB InBev McCain
Abbott Nutrition McCormick
ACCO Brands Mondelēz India Foods
Amway India Enterprises Nestle India
Asahi India Glass New Balance Athletics, Inc.
Asian Paints Nike
Bajaj Consumer Care NIVEA India
Ball Corporation Nokia OY
Bata India Olam food Ingredients India.
Bauli India Bakes & Sweets OmniActive Health Technologies
Berry Global, Inc. PepsiCo
Bosch Perfetti Van Melle
Bose Corporation Pernod Ricard
Britannia Industries Philips India
Brown Forman Piramal Enterpirses
Capital Foods PM IN Wholesale Trading (Philip Morris Int)
Cargill India Reckitt
Carrier Samsung India Electronics
Chanel Inc Signify
Coca-Cola India Snap One
Colgate-Palmolive India Sony India
Dabur India Steelcase Inc.
Del Monte Foods Tata Consumer Products
Dell The Estee Lauder Companies
Dyson Titan Company
Freudenberg Gala Household Product Tropical Industries International
General Mills TTK Healthcare
Givaudan Twinings
Godrey Phillips India VST Industries
Groupe SEB Whirlpool Corporation
H&M Hennes & Mauritz India Zebra Technologies
Happilo Zydus LifeScience
Herbalife Nutrition Zydus Wellness
Herman International
Hershey India
Hilti Manufacturing India
Hindustan Coca-Cola Beverages
Hindustan Unilever
Hitachi India
ITC
JR Simplot
Kohler Co.
Lee Kum Kee
Lenovo
Levi Strauss & Co
Lifestyle International
Logitech
Luminous Power Technologies
Marico
Marks and Spencer Reliance India
Mattel, Inc.

81
Hi Tech/Information Technology
247.ai Caterpillar
91Springboard CDK Global (India)
Accenture Celestica
Adidas Cerence
Adobe Systems Incorporated CGI
Advance Auto Parts Chegg, Inc.
Agoda Chubb India
Airbnb Ciena Corporation
Akamai Technologies Cisco
Alamy Images India Citco
Alef Mobitech Citrix Systems
ALIBABA GROUP INC Cloudera
Alight Solutions Cloudflare Inc
Amadeus Software Labs India COFORGE
Amazon Development Center India (Customer Cognizant
Service) Coinbase
AMD Colruyt IT Consultancy India
Amdocs Concentrix India
AMETEK, Inc Condeco Software
Ampere Computing Continental Automotive Components(India)
Analog Devices CredAble
Aon Credit Suisse
API Holdings (PharmEasy) CSG SYSTEMS INTERNATIONAL INDIA
Apple Cummins Inc
Arctern Consulting Cvent India
Aristocrat Leisure CyberArk
Aristocrat Technologies India Daimler Truck Innovation Center India (DTICI)
AT&T Danske IT & Support Services India
Atlassian Inc. Dassault Systemes
Aura Semiconductor DealShare
Automation Anywhere Dell
AVL INDIA “Deloitte U.S. India Firms
Axelerant Technologies Deutsche Bank AG
Baker Hughes Deutsche Telekom Digital Labs
Bank of New York Mellon DIGITUP SOLUTIONS
Basware India DMI
Bechtel India Dunnhumby
Birlasoft Dunzo Digital
Blackhawk Network DXC Technology
BlackRock Ebay
BMC Software eClerx Services
Booking.Com Edelweiss Tokio Life Insurance
Bosch Global Software Technologies Electronic Arts
Broadcom Ensono Technologies
Broadridge Entertainment Network (India)
Browserstack Entrust
Bureau Veritas Envoy Global India
Cadence Design Systems EPAM Systems India
Cambium Networks Epsilon India
Capgemini Technology Services India Epson India
Capital One Equifax, Inc.

82
Equinix Imagination Technologies
Ericsson Imec
Esper Incedo
Eurofins IT Solutions India Infineon Technologies
EXL Infinera Corporation
Expedia Group Infinite Computer Solutions
Experian APAC Infor
EY GDS Infosys
F5 INC Intel
FAI First American India InterContinental Hotels Group
Fair Issac Corporation Intuit
FalconX Invesco
Ferns N Petals IQVIA
FIL India Business and Research Services Jones Lang LaSalle
Finastra JPMorgan Chase & Co.
First Advantage Global Service Centre Juniper Networks, Inc.
Firstsource Solutions Kaspersky
FIS KFin Technologies
Fivetran, Inc Kiranakart Technologies
Flatworld Solutions Knowles Corporation
Flextronics Technologies Kohler Co.
Flipkart Internet KPMG India
FMRI Kroll
Forcepoint Kyndryl
Forgeahead Solutions Lam Research
Franklin Templeton Lattice Semiconductor
Freight Tiger Leap (OutLeap Technologies)
Freshworks Lenovo
Frontdoor Lenovo India
Garmin Technologies Lifestyle International
Gartner LinkedIn
Genpact Lionsgate India
GEP Worldwide Lockheed Martin
GitLab LogicMatter India
GlobalFoundries Inc Logitech
GoDaddy Lowes India Services Private
Goldman Sachs Manhattan Associates India Dev Centre
Goto Group Marvell
Great West Global Mastercard
GSK Mavenir
H5 Asia Pacific Maveric Systems
Harman International MediaTek Inc.
HCL Technologies Meesho
Here Technologies Mercedes Benz Research and Development
Hewlett-Packard Enterprise India
Hilti Technology Solutions India Meta
Hitachi India MetLife Global Operations Support Center
Honeywell Intl. MetricStream, Inc.
HP India Micro Focus
HSBC India Microchip Technology Inc.
Hubbell Inc. Microland
Hughes Systique Corporation Micron Technology
Huron Consulting Group Microsoft
IBM Mobily Infotech India
Icertis Mobis India
IDFC First Bank MongoDB

83
Moodys RR Donnelley
Morningstar India Sailpoint Technologies
MPS Saks OFF 5TH
MSCI Service India Salesforce.Com
Nagarro SAP Labs
Nasdaq, Inc. Schlumberger India Technology Centre
Natwest Group Seagate Technology
NetApp Secureworks
Netscout Systems Semtech
News Technology Services ServiceNow
Nexperia Siemens Digital Industries Software
Nihilent Sigmoid Analytics
Nokia OY Signify
Nomura Silicon Labs
Northern Arc Capital Singapore Telecommunications
Northern Trust SKF India
Novo Nordisk India SLK Software Services
NTT DATA Smarsh India
Nucleus Software Exports Limited Smart Global Holdings
Nutanix, Inc. SNic Solutions India
Nvidia Societe Generale
NXP Semiconductors SopraSteria
Nykaa Spirent Communications Inc.
Ocwen Standard Chartered
Olam Information Services State street Corporation
OmniVision Technologies Inc. Sterlite Technologies
ON Semiconductor STMicroelectronics
OpenText StockX
Optiv, Inc. Stripe
Oracle India Swiss Re
Outbrain Synaptics
Palo Alto Networks Synchrony
PayPal Target
Paysafe Taskus
PepsiCo Tata CLiQ
Perceptiviti Data Solutions Tata Communications
Philips India Tata Consultancy Services
Pitney Bowes Inc TATA Technologies
Pluralsight Tavant Technologies
Priceline Tecnotree Corporation
PricewaterhouseCoopers Service Delivery Telstra India
Center Temenos Group AG
Principal Global Services Teradata
pSemi Corporation Texas Instruments
Publicis Sapient Thieme Medical & Scientific Publishers
Qlik Thomson Reuters
Qualcomm India Thoughtworks
Quantum Corporation Thryve Digital Health LLP
Quinnox Consultancy Services Thyssenkrupp AG
R1 RCM Global TIBCO Software
Rakuten Group Inc. Tieto India
Rambus Timesys Technologies
RapiPay Toast, Inc
Reckit Toppan Merrill Technology Services
Red Hat, Inc. TP Vision India
Resideo Technologies Transparent Value
ROHM Semiconductor Indi Transunion

84
Tredence Analytics Solutions Visa Inc.
TresVista Financial Services VMware, Inc.
Trimble Volvo Group India
Truecaller International LLP Wells Fargo International Solutions
Truminds Software Systems Wipro
T-Systems WNS Global Services
TTEC Holdings Inc. Wolfspeed Inc.
TurboHire Workday
Twilio Yahoo
Udemy Yash Technologies
Ugam Solutions Yellow.ai
UiPath Zebra Technologies
Unisys India Zee Entertainment Enterprises
UnitedHealth Group ZestMoney
Unity Technologies Zomato
Urban Company Zoom Video Communications, Inc.
UST Global Inc ZS Associates
Verisign, Inc. Zynga Game Network India
Verisys Global
Verizon

Hospitality/Restaurants
Hyatt Hotels Corporation
InterContinental Hotels Group
Tata Starbucks
Yum! Restaurants, India

IT Enabled Services
247.ai Coforge
7 Eleven Global Solution Center Concentrix India
Accenture CPP Investments
Accurio Health Credence Resource Management
Aeries Technology Group Credit Suisse
Alight Solutions Deloitte U.S. India Firms
Amazon Development Center India (Customer Deutsche Bank AG
Service) eClerx Services
ANSR Edelweiss Tokio Life Insurance
Aon Egon Zender
athenahealth Technology Eli Lilly Services India
Axis Bank Ericsson
BA Continuum India (Bank of America) EXL
Bain & Company EY GDS
Bank of New York Mellon FAI First American India
Bechtel India FIL India Business and Research Services
BlackRock First Advantage Global Service Centre
Boston Consulting Group Firstsource Solutions
Capgemini Technology Services India FMRI
Capita India Private Limited Franklin Templeton
Capital One Gartner
Clifford Chance Business Services Gartner Inc

85
Genpact Ocwen
GEP Worldwide Olam Information Services
Goldman Sachs PepsiCo
Great West Global PricewaterhouseCoopers Service Delivery
GSK Center (Kolkata)
Harman International R1 RCM Global
Hashedin by Deloitte Randstad India
Hays Business Solutions RR Donnelley
HGS Healthcare Saks OFF 5TH
HSBC Bank Sigmoid Analytics
ICE Data Services India SKF India
IDFC First Bank Smarsh India
Infogain Societe Generale
Infosys Standard Chartered
Invesco Standard Chartered Research & Technology
IQVIA India
Jones Lang LaSalle State street Corporation
JPMorgan Chase & Co. Stripe
KPMG India Sunlife Financial - Asia Service Centres
Kroll Swiss Re
Lockheed Martin Synchrony
Lowes India Services Private Target
Manipal Business Solutions Tata Communications
MetLife Global Operations Support Center Tata Consultancy Services
Midland Credit Management Thryve Digital Health LLP
Moodys Toppan Merrill LLC
Morningstar India Transunion
MSCI Service India Tredence Analytics Solutions
Nasdaq, Inc. TresVista Financial Services
Natwest Group UnitedHealth Group
Nomura UST Global Inc
Northern Arc Capital Wells Fargo International Solutions
Northern Trust Wipro
Novo Nordisk India WNS Global Services
NTT DATA ZS Associates

Life Sciences
Abbott India Becton Dickinson India
Abbott Medical Bio Red Laboratories
AbbVie Inc. BIOCON
ACG World Boehringer Ingelheim
ACM Global Laboratories Carestream Health
Agilent Technologies Inc Carl Zeiss AG
Alcon Laboratories Charles River Laboratories
Alkem Laboratories Cipla
Amgen Cytel Inc
Apotex India Danaher
Ascensia Diabetes Care Holdings AG Dentsply Sirona
AstraZeneca Pharma India Dr Reddys Laboratories
Aurobindo Labs Edwards Lifesciences
Avanos Medical Fresenius Kabi India
Baxter International Galderma

86
GE Healthcare Parexel International
Gilead Sciences PerkinElmer
Glenmark Pfizer
Granules India Piramal Enterpirses
GSK Premier Research Group (India)
Hollister Incorporated QIAGEN
ICON, plc Sanofi India
IDEXX Laboratories Servier India
India Medtronic & Medtronic Engineering & Siemens Healthcare
Innovation Center Smith and Nephew
Intas Pharmaceuticals Sun Pharma
Intuitive Surgical Syngene
IQVIA Teleflex Medical
Jubilant Drug Discovery Services Terumo Blood and Cell Technologies
Jubilant Pharmova Thermo Fisher Scientific
Labcorp Thieme Medical & Scientific Publishers
Lonza Biologics PLC Thryve Digital Health LLP
Lupin UCB Pharma
Merck Group USV
MSD pharmaceuticals Varian Medical Systems
Mylan (A Viatris Company) VETOQUINOL SA
Novartis Healthcare West Pharmaceutical Services
Novartis India Zimmer Biomet
Novo Nordisk India ZimVie
Novus International Zoetis
OmniActive Health Technologies Zydus LifeScience
Otsuka Pharmaceutical India

Metals & Mining

Adani Enterprise JSW Steel
AMNS India Rio Tinto India
Arconic Tata Steel
BLUESCOPE thyssenkrupp AG
Dalmia Refractories Vedanta
Hindalco Industries

Other - Manufacturing
ABB Business
Air Liquide Grasim Industries - Pulp & fibre
Alok Industries Greif
Arvind Hilti Manufacturing India
Asahi India Glass International Distribution Network Co. (Double
Ashirvad Pipes A)
Aspen Aerogels, Inc. IPG Photonics
Avery Dennison Jenoptik AG
Carborundum Universal KONE Corporation
Carborundum Universal Limited Manipal Technologies
Frames Process And Energy Systems India Moog, Inc
Godrej & Boyce Mfg. Co. Piezo Technology India
Grasim Industries Limited - Pulp & Fibre Piramal Enterpirses

87
PM IN Wholesale Trading The Goodyear Tire and Rubber Company
Signify Tubacex India
SRF WIKA Alexander Wiegand SE & Co. KG
Swiss Singapore Overseas Enterprises Pte.

Other - Services
Airbnb NIIT
Axis Securities Novo Nordisk Service Centre (India)
Cambridge University Press and Assessment OneAssist Consumer Solutions Pvt. Ltd.
Celebi India Parkway Healthcare India
DNV Shared Services India PATH
Dorling Kindersley Publishing Pitney Bowes Inc
Dynata POPULATION COUNCIL
First Advantage Global Service Centre Property Solutions (India)
GATX India SAGE Publication India
GIA India Laboratory Private Limited Swiss Singapore Overseas Enterprises Pte.
Heifer International Taskus
Hireright The International Association of Lions Clubs
IDP Education Times Internet
Indian Public Schools Socitey - The Doon TVS Mobility
School TVS Supply Chain Solutions
Institute of International Education (IIE) UCB INDIA
Lenzing Fibers India Prv. Udayan Care
Magnasoft Consulting India. Vital Strategies
Max Healthcare Institute Water For People
Morinetech India ZestMoney

Professional Services
ANSR ICF International
Bain & Company KPMG India
Boston Consulting Group Kroll Associates
CHATURTH BUSINESS SOLUTIONS P Mindcrest India
EY India PERSOLKELLY India
Gartner Inc PricewaterhouseCoopers
Helma Solutions India Randstad India
Huron Consulting Group TMF Group

Real Estate/Infrastructure
Adani Real Estate Jones Lang LaSalle (JLL)
Altisource Business Solutions Kalpataru
Arvind Smart Services Lodha Group
CEC International Corp. India Re Sustainability
Corning Services TATA Projects
GMR
GMR Group
Godrej Properties

88
Retail (incl. Wholesale & Distribution)
adidas LT Apparel
Aditya Birla Fashion & Retail Marks and Spencer Reliance India
Bata India Nike
Carrefour Trading Asia NorthernTool + Equipments India
Chanel Inc Nykaa
Dabur NewU Tesco India
H&M Hennes & Mauritz India Titan Company
Levi Strauss & Co V Mart Retail
Lifestyle International

Telecommunications Services
Airtel Sterlite Technologies
AT&T Tata Communications
Ericsson Tata Teleservices
Singapore Telecommunications Telstra India

Transportation Services/Logistics
Air France KLM
Dachser SE
DHL Global Forwarding Freight Shared
Services India LLP
Freight Tiger
Gati-Kintetsu Express
GMR
GXO Logistics, Inc.
United Airlines Holdings, Inc.

ADDITIONAL CONTRIBUTORS
Anushka Pandit Pritish Routray Vidushi Thapar
Daksh Kumar Ratnesh Agrahari Rudraksh Sharma
Pankaj Jajoo Sahiba Khurana Sanatvikram Singh

89
Learn More About Human Capital Solutions :
https://humancapital.aon.com/
For further information you may reach out
to:
Prateek Gupta
prateek.gupta11@aon.com
Vishakha Kalra
vishakha.kalra@aon.com
Aaradhya Sharma
aaradhya.sharma@aon.com

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