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Salary Increase, Attrition and Hiring Report 2025-26: From Salary Race to Skills Chase

Salary Increase, Attrition and Hiring Report 2025-26: From Salary Race to Skills Chase

11 Apr, 2025
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The days of double-digit salary hikes and aggressive talent poaching are fading in India’s GCC ecosystem. Zinnov’s latest report, “Salary Increase, Attrition & Hiring Trends: An India GCC View 2025-26,” reveals a market at a critical inflection point – moving beyond the unsustainable compensation patterns of the Great Resignation toward a more measured, skills-first approach.

And the timing couldn’t be more crucial.

The Great Reskilling Revolution

GCCs are abandoning the bidding wars. Instead, they’re building comprehensive talent strategies centered on skills development and career flexibility. While maintaining a 15-22% salary differential over IT Service Providers, these organizations are redefining value beyond compensation.

The numbers tell the story: 48% of GCCs now prioritize proven capabilities over academic credentials. Junior-level employees can expect 20-35% salary jumps, while BFSI and Software sectors lead with projected increases of 10.4% and 10.2%.

Perhaps most telling is the emergence of “micro-retirements” – planned career breaks that 62% of professionals have already taken, with another 35% considering one. It’s a clear signal that employee expectations have fundamentally changed.

Strategic Imperatives for GCC Leaders

The most forward-thinking GCC talent functions are leveraging this moment to rearchitect their approach to workforce strategy.

Long-term incentives, once reserved for executives, are now being extended to mid-level employees by 38% of organizations. Meanwhile, structured onboarding and early engagement strategies are becoming essential defenses against the rising challenge of infant attrition, with one in three GCCs reporting concerns about talent loss in early employment stages.

For GCC leaders navigating this evolving landscape, the implications are profound. Should you continue investing in traditional compensation strategies, or pivot toward building internal capabilities? Which talent investments deliver the greatest returns in today’s market? And how do you balance short-term competitive pressures with long-term workforce sustainability?

What This Report Reveals

Zinnov’s Salary Increase, Attrition, and Hiring Trends 2025-26 Report provides critical insights for navigating this transformed landscape:

  • Precise 2025 salary projections by function, level, and industry vertical
  • How top GCCs achieve 25-40% cost savings through strategic reskilling
  • The three key drivers of voluntary attrition and proven countermeasures
  • Strategic approaches behind the 72% of GCCs now offering long-term incentives
  • The business impact of “micro-retirements” on retention strategies
  • Industry-specific trends reshaping compensation models

In a marketplace where the rules are being rewritten, yesterday’s playbook won’t secure tomorrow’s talent.

Contact our experts at info@zinnov.com for personalized guidance on developing a strategic talent management approach tailored to your organization’s needs.
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  • Salary Increase Attrition And Hiring Trends An India Gcc View 2025 26 Report 1746186311 1
  • Salary Increase Attrition And Hiring Trends An India Gcc View 2025 26 Report 1746186311 2
  • Salary Increase Attrition And Hiring Trends An India Gcc View 2025 26 Report 1746186311 3
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Tags:

  • AI
  • Attrition
  • Engineering R&D
  • Engineering Talent
  • salary increase
  • Talent Management
  • Talent Strategy
Authors:
Namita Adavi, Partner, Zinnov
Megha Deb, Engagement Manager, Zinnov
Eeshta Ashtekar, Consultant, Zinnov

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