The debut edition of Deloitte India Talent Outlook 2023 was launched in January 2023 as a B2B India-specific survey. The primary audience for this survey was CHROs of leading organisations. Almost 300 organisations participated—across seven sectors and 25 sub-sectors. Here are the key findings.
Workforce and increment trends
Survey findings indicate that the average India increment in 2023 is expected to drop to 9.1% from 9.4% in 2022. One in every three organisations is planning to give double-digit average increments. The study finds that 2023 increments are expected to be lower across almost all sectors, compared to 2022 actual increments. While the Life Sciences sector is expected to witness the highest increments in 2023, the IT sector will likely witness a major drop in increments compared to 2022. Additionally, attrition in India reached 19.7% in 2022, up from 19.4% in 2021.
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Anandorup Ghose, Partner, Deloitte Touche Tohmatsu India LLP (Deloitte India), said, “The significant attrition levels across industries in late 2021 continued until early 2022. We saw Indian organisations budgeting the highest increment in 2022 over the last four years. What they also did was hire aggressively. This led to employee costs rising faster than revenue growth over the last 3–4 years in almost every other company.”
Ghose adds here that stubborn inflation, higher interest rates, and a slowing economy are likely to make organisations more cautious this year. Increments and attrition are expected to witness lower trends in 2023.