Salary Hikes Inching Closer To Pre-Covid Levels; Median Increment To Be Around 8.13%: TeamLease Report

TeamLease Services India’ leading people supply Chain Company today released the latest edition of its Jobs and Salary Primer Report for FY’22. According to the report, unlike the last two years, this year most of the job roles from across sectors have be considered for a salary hike, however, the increments will be moderate. Out of the 17 sectors reviewed 14 have indicated a single digit hike. The median salary increment will be around 8.13%. Ecommerce and Tech Start-ups, Healthcare and Allied Industries, Information Technology and Knowledge Services are the only three sectors who have registered a salary growth greater than 10%.

An in-depth research covering the jobs and payout trends across 8 functions, 2,63,000 temp profiles, 17 industries and 9 cities, as per the report while conservatism is the underlying theme, employers are not shying away from rewarding skills, especially niche skills. The salary hike for super specialized job roles range between 11% and 12%. Further, from a geographic perspective, amongst the cities the top paying (increments of 12% and above) are Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Mumbai and Pune. A detailed study, the research not only bring to light the salary trends it also covers the dynamics that govern the payout decisions. As per the analysis, most of the sectors, have recovered from the COVID-induced slump sectors. Majority, 10 out of the sectors analysed have indicated a progression rate of 7-10% and the rest are growing at a rate of 5-7%.

Key Findings

Hot jobs – the gift that keeps giving: 9 out of the 17 sectors created new Hot jobs and 6 sectors created new Upcoming jobs this year.

Corresponding stats for the 2021 edition: Hot jobs – 7 of the 17 sectors; Upcoming jobs – 5 of the 17 sectors

Hottest Hot jobs:

· Field Scientist – (Agriculture and Agrochemicals)

· EV Technical Expert - (Automobile & Allied Industries)

· KYC Analyst - (Banking, Financial Services and Insurance)

· Digital Marketing Manager - (Ecommerce and Tech Start-ups)

· Curriculum Developer – (Educational Services)

· Food Technologist – (Fast Moving Consumer Goods)

· SaaSops Engineer – (Information Technology and Knowledge Services)

Demand for specialization and expertise is unabated: Employers continue to place a premium on super-specialized job roles and the demand for this job category continues to rise. Growth rates in the category have inched up from 11% to 12% this year.

Corresponding stats for the 2021 edition: Salaries grew by a minimum of 6.08 % and a maximum of 12.13% across sectors

· Ecommerce and Tech Start-ups, Healthcare and Allied Industries, Information Technology and Knowledge Services exhibited growth in excess of 11%

· Agriculture and Agrochemicals, Automobile & Allied, Banking, Financial Services and Insurance, BPO and IT Enabled Services, Construction & Real Estate, Educational Services, Fast Moving

· Consumer Durables, Fast Moving Consumer Goods, Hospitality, Industrial Manufacturing and Allied, Media and Entertainment, Power and Energy, Retail, Telecommunication exhibited less than 10% growth

· Top super-specialized profiles: Automation Engineer– (Information Technology and Knowledge Services : 10.71%), Consultant Content Writer (Ecommerce and Tech Start-ups : 10.11%), R & D Analyst (Healthcare & Pharmaceuticals – 10.07%)

· Top Sector-Cities: Information Technology and Knowledge Services – Bangalore [maximum 10.71%] and Healthcare & Pharmaceuticals - Delhi [maximum 10.07%] exhibited the maximum salary growth across cities/sector

Sales and IT roles continue to dominate: As entire sectors are transitioning towards pre-Covid levels – some rapidly and the others steadily – the sales and IT functions remain critical for this phase of return to normalcy.

· Top Sales profiles: Sales Consultant, Manager-Pre Sales, Quality Officer, and Product Specialist

· Top IT profiles: IT Consultant, Network Engineer, Sr. Project Manager, and Digital Strategy Consultant

· Average salary growth for Sales profiles: 7.41%

· Average salary growth for IT profiles: 9.23%

Salary variance stays on track: Despite a marginal 4% drop pay differentials between permanent and temporary job profiles (less than 3%) stood steady for nearly 37% of all profiles across all sectors.

Corresponding stats for the 2021 edition: Variance less than 3% for 41% of the profiles and in 15 sectors

· Less than 5% variance: Automobile and Allied Industries, BPO and IT enabled Services, Construction & Real Estate, FMCD, Healthcare & Pharmaceuticals, Hospitality, Industrial Manufacturing & Allied, Media & Entertainment, Power & Energy, Retail and Telecommunications

· Significantly less than 5% variance: Agriculture and Agrochemicals, Fast Moving Consumer Durables, Fast Moving Consumer Goods, Industrial Manufacturing & Allied, Media & Entertainment, Power and Energy, Retail

Top and bottom sectors:

· Top paymasters [Greater than 10% salary growth]: Ecommerce and Tech Start-ups, Healthcare and Allied Industries, Information Technology and Knowledge Services

· Bottom paymasters [Lesser than 10% salary growth]: Agriculture and Agrochemicals, Automobile & Allied, Banking, Financial Services and Insurance, BPO and IT Enabled Services, Construction & Real Estate, Educational Services, Fast Moving Consumer Durables, Fast Moving Consumer Goods, Hospitality, Industrial Manufacturing and Allied, Media and Entertainment, Power and Energy, Retail, Telecommunication

Top profiles (and related sectors):

· Finance Consultant (Agriculture and Agrochemicals)

· Credit Financial Analyst (Banking, Financial Services and Insurance)

· Business Operation Analyst (E-Commerce & Tech Startups)

· QS and Planning Engineer (Fast Moving Consumer Durables)

· Automation Engineer (Information Technology and Knowledge Services)

Fast growth profiles:

Fastest growing among the new profiles added (sector | salary growth).

· R & D Analyst (Healthcare & Pharmaceuticals | 9.39%)

· Network Engineer (Information Technology and Knowledge Services | 9.33%)

· AutoCAD Engineer (Automobile & Allied Industry | 9.05%)

· Credit Financial Analyst (Banking, Financial Services and Insurance | 8.91%)

· Sales Consultant (E-Commerce & Tech Startups| 8.75%)

The hands-on worker:

Popular Blue Collar profiles (key skill | salary per month)

· Logistic Executive (Communication & interpersonal skills. Liaising | INR 18,000)

· Sales Promoter (Interpersonal skills, Product knowledge | INR 15,000)

· Rigger (Good communication skills; Excellent spatial awareness| INR 19,000)

· Warehouse Executive (Strong supervisory & leadership skills, Data entry | INR 21,000)

· Tele Caller (Communicational Clarity, Active Listening, Product knowledge, problem-solving skills | INR 21,000)

The Covid-slump has bottomed out: The year marks a clear departure from the pandemic imposed slump by all sectors, without exception. More sectors (ten) are accelerating towards pre-Covid levels than the ones (eight) that are steadily getting there.

· Quick Progression: Agriculture and Agrochemicals, Automobile & Allied Industry, Banking, Financial Services and Insurance, Ecommerce and Tech Start-ups, Educational Services, Healthcare & Pharmaceuticals, Information Technology and Knowledge Services, Power and Energy, Retail and Telecommunications – [7% - 10%]

· Steady Progression: BPO & ITeS, Construction & Real Estate, Fast Moving Consumer Durables, Fast Moving Consumer Goods, Hospitality and Industrial Manufacturing and Allied, Media & Entertainment – [5% - 7%

A majority of job roles are now Covid-proof: And salary growth is more or less uniformly distributed across this large majority, with most organizations adapting to multiple modes of work – office, remote and hybrid and normalcy returning to the workplace.

Job profile| Sector | Salary growth

· Network Engineer | Information Technology and Knowledge Services | 9.33%

· Senior Admission Officer| Educational Services | 8.81%

· SQL Analyst| Banking, Financial Services and Insurance | 8.11%

· Legal Executive| Ecommerce and Tech Start-ups | 7.86%

· Quality Officer | Hospitality | 7.50%

The residual effects are tapering: Much smaller cohorts of job roles now remain in either stagnation or de-growth mode as compared with the previous year, almost mirroring the pre-Covid state of market demand.

Stagnation: Job profile| Sector | Salary growth

· X-Ray Technician| Healthcare and Allied Industries |2.62%

· Plant Operator| Agriculture and Agrochemicals |2.54%

· Sales Officer| Power and Energy |2.29%

· Lane Assistant | Construction and Real Estate |2.10%

· Store Picker| Fast Moving Consumer Durables |2.03%

Degrowth: Job profile | Sector | Salary de-growth

· Bending Operator | Automobile and Allied Industries| -1.57%

· Tile Fixer | Construction and Real Estate | - 1.21%

· Field Monitor | Fast Moving Consumer Goods | - 1.03%

· Guest Service Attendant | Hospitality | - 0.61%

· Trainee Engineer | Retail| - 0.33%

Growth: Job profile | Sector | Salary growth

· Software Test Specialist | Information Technology and Knowledge Services | 8.10%

· Credit Financial analyst | Banking, Financial Services and Insurance |7.33%

· R&D Analyst | Healthcare and Allied Industries |6.79%

· Sales Consultant| Ecommerce and Tech Start-ups |6.21%

· Relationship Manager| Telecommunication|5.85%

Sectors with significant work-from-home (WFH) profiles: to benefit on account of business continuity

Sectors likely to benefit on business continuity from WFH profiles:

· BPO & ITeS, E-Commerce & Tech Startups, Educational Services, Information Technology and Knowledge Services

Sectors with WFH roles but unlikely to benefit on business continuity:

· Agriculture and Agrochemicals, Automobile & Allied Industry, Banking, Financial Services and Insurance, Healthcare & Pharmaceuticals, FMCD, FMCG, Retail, Media & Entertainment, Industrial Manufacturing & Allied

Elaborating on the report, Ms. Rituparna Chakraborty, Co-Founder & Executive Vice President, TeamLease Services said, “While the increments are yet to reach the double digit hikes, it is heartening to see that the phase of salary de-growth and stagnation that have been hovering across the job market in the last two years is nearing its end. The revival coupled with the growing appetite for roles across profiles and sectors indicate that the modest approach will soon taper off and push the increments to reach the pre-covid level.”

Another interesting aspect that the report has brought to light is the growing interest from India Inc towards Hot and Upcoming jobs (cutting-edge, new-age roles that keep businesses ahead of the curve). As per the report, while in FY202-21 only 5 out of the 17 sectors had created, close to 9 sectors had created Hot jobs in FY2021-22.

The Jobs and Salaries Primer is an annual report from TeamLease Services Limited that analyses the hiring and salary trends across industries. It provides an overview of unified salaries across temporary and permanent profiles across markets. This edition of ‘The Jobs and Salaries Primer’ has taken into consideration the salary payouts of more than 2,63,000 candidates across 17 sectors and 9 cities