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Salary Increase, Attrition, and Hiring Trends 2025 – An India GCC View

Salary Increase, Attrition, and Hiring Trends 2025 – An India GCC View

13 Nov, 2024
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Will 2025 redefine how India’s GCCs value, acquire, and retain talent?

As 2024 draws to a close, Global Capability Centers (GCCs) in India stand at a pivotal juncture. The coming year promises to bring significant shifts in talent dynamics, as organizations balance economic uncertainties with the growing demand for specialized skills. 2025 is poised to be a year where strategic talent management will be more crucial than ever.

Salary Increase Trends 2025: Strategic Differentiation Takes Center Stage

The compensation landscape in 2025 is expected to reflect a more nuanced approach to talent valuation. While the BFSI, Software & Internet, and Gaming sectors are anticipated to offer the most substantial salary increases, organizations are moving away from broad-brush approaches to compensation. Performance differentiation will become stricter, with companies maintaining double-digit salary increases for junior-level employees while creating clearer distinctions between high, average, and low performers.

The criticality of skills will emerge as a key factor in determining salary increases, particularly as Artificial Intelligence (AI) reshapes the talent landscape in 2025. Specialized AI roles are currently commanding premium increases of 35-55% during job transitions, a trend that’s expected to intensify in 2025 and beyond as organizations compete for these increasingly essential capabilities.

While core digital skills fetch packages between 16-106 lakhs, professionals with niche AI and specialized digital capabilities are securing substantially higher compensation ranging from 26-152 lakhs. Organizations are recognizing this widening compensation gap and recalibrating their strategies to not just attract but retain AI talent—understanding that these specialized skills will be crucial for maintaining competitive advantage in an increasingly AI-driven future.

2025 Attrition Forecast: A New Dynamic Emerge

2025 may witness a slight uptick in Voluntary Attrition as market recovery gains momentum. The Software & Internet, BFSI, and Automotive industries are likely to experience the highest attrition rates. However, this isn’t just about compensation – today’s workforce, particularly Gen Z employees, prioritize purpose-driven work, positive environments, and meaningful roles.

Organizations are responding by focusing on preventing infant attrition, with 37% of GCCs proactively monitoring new hire quality. The emphasis is shifting towards creating comprehensive value propositions that address both financial and non-financial aspects of employee satisfaction.

2025 Hiring Landscape: Strategic and Focused

The hiring landscape in 2025 will be characterized by strategic prudence. Companies are expected to adopt a lean and disciplined approach, moving away from the hire-and-fire cycles of previous years. While overall hiring may remain cautious, there’s an anticipated uptick in fresher recruitment, particularly focusing on candidates with expertise in new-age specializations such as AI/ML, Data Science, Analytics, and Sustainability.

A significant trend is the emergence of ‘green jobs’ as Sustainability becomes a key focus area. The International Labour Organization estimates this sector will create 24 Mn jobs globally by 2030, introducing roles like Sustainable Procurement Analysts, ESG Accounting Managers, and Green Finance Specialists.

2025’s Emerging Roles: The Next Generation of GCC Talent

2025 will see the continued emergence of next-generation roles shaped by technological advancement and changing business needs. Traditional positions are evolving into specialized roles:

  • HR roles will transform into future-ready positions such as Workplace Engagement Specialists, Gig Workforce Managers, and Neurodiversity Recruitment Specialists
  • Traditional technology roles will evolve into next-gen specializations, with Software Engineers and Data Scientists moving into positions like Generative AI Architects, AI Research Scientists, and Emotional AI Specialists
  • With growing focus on environmental goals, 2025 will see the rise of roles like ESG Accounting Managers, Green Finance Specialists, and Sustainable Procurement Analysts

Salary Increase Trends, Attrition, and Hiring: Strategic Approach for 2025

As we approach 2025, organizations must prepare for a year of strategic talent management. Success will depend on:

  • Balancing cost optimization with competitive compensation for critical skills
  • Creating robust learning and development frameworks
  • Building sustainable talent pipelines, particularly in Tier-II cities
  • Developing comprehensive employee value propositions that resonate with a purpose-driven workforce

The “Salary Increase, Attrition & Hiring Trends: An India GCC View” report provides detailed insights into these trends, helping organizations craft effective talent strategies for the year ahead. In a landscape where talent strategies directly impact business success, understanding these dynamics is crucial for maintaining competitive advantage in the global market.

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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Tags:

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

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