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Remember the classic fable of the tortoise and the hare? The one where the speedy hare races ahead, while the slow but steady tortoise takes a more measured approach?
As we move into 2024, this age-old wisdom seems to be playing out in the job market. Both employees and employers are adopting this “tortoise mindset” – a mindset that prioritizes stability, resilience, and consistent growth in response to global economic and geopolitical uncertainties.
This shift in mindset is influencing key aspects of the job market, from salary increases and attrition rates to hiring practices. Companies are focusing on building a strong foundation, investing in their existing talent, and creating a workplace culture that fosters loyalty and engagement. Employees, in turn, are seeking opportunities that offer not just financial rewards but also work-life balance, professional development, and a sense of purpose.
So, how are these changing priorities shaping salary increase trends, attrition patterns, and hiring strategies in 2024? Let’s take a closer look.
In 2024, companies are likely to focus their salary increases on those who consistently deliver value. While overall budget allocations for salary increases may decrease compared to previous years due to cautious macroeconomic conditions and reduced voluntary turnover, this doesn’t mean a one-size-fits-all approach.
Organizations are expected to prioritize salary increases for top performers, particularly those with sought-after skills in areas like AI/ML, Data Science, and Cybersecurity. This strategic approach ensures that valuable talent is retained and that the company maintains its competitive edge. Additionally, investing in a strong Employee Value Proposition (EVP) that goes beyond just compensation will remain crucial in attracting and retaining talent, even in a cautious economic climate.
The high demand for talent that fueled job-hopping in recent years is expected to slow down in 2024, leading to a decrease in voluntary attrition rates. However, organizations will still need to navigate persistent challenges.
Employees who feel undervalued, dissatisfied with their compensation and benefits, or struggling with poor work-life balance may still be tempted to seek new opportunities. Moreover, while voluntary attrition may decrease, involuntary attrition due to restructuring initiatives in some GCCs might continue to rise, driven by factors such as AI investments, over-hiring correction, and project prioritization.
The establishment of new GCCs specializing in areas like AI/ML, Cybersecurity, and Automotive solutions is expected to drive demand for niche skills and expertise in the 2024 job market.
This trend will shape hiring practices, with organizations adopting a more targeted approach. Rather than mass hiring, companies will seek specific skill sets to fill critical roles, focusing on key functional areas such as ER&D, IT, and BPM. This targeted growth strategy aligns with the need for specialized talent in a rapidly evolving technological landscape.
As we enter 2024, organizations need to adopt a more adaptable and future-proof approach. Cultivating a diverse talent pool with a focus on core competencies is essential for sustained excellence. This requires continuous learning, development, and investment in the existing workforce, and this is why the report “Salary Increase, Attrition, and Hiring Trends: An India GCC View 2024” serves as an invaluable resource.
The report offers a comprehensive analysis of salary increase, attrition, and hiring trends across various segments, including:
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