Latest news with #AnnualSalaryIncreaseandTurnoverSurvey
Mint
5 days ago
- Business
- Mint
Flipkart returns to salary increments, hiring spree after two tepid years
Bengaluru: Online marketplace Flipkart Internet Pvt. Ltd is doling out increments of 8-15% this year even as it gears up to hire as many as 5,000 employees across its business segments, including its 10-month-old quick-commerce service Flipkart Minutes. Last year, the Walmart-backed e-commerce giant opted for merit-based payouts handed out in April and October instead of salary increments that are staggered across an entire year. Also, several senior employees were denied a pay hike for a second consecutive year as Flipkart sought to cut costs and raise efficiency. This year, the Bengaluru-based digital marketplace is on an expansion drive, particularly in the quick-commerce space, where it's rushing to catch up with younger but more established competitors such as Blinkit and Zepto. The salary increase projected for India's e-commerce industry this year is 9.3%, up from an average increase of 9.1% in 2024, according to consulting firm Aon's Annual Salary Increase and Turnover Survey 2024-25. The industry's highest increment in the past 7-8 years was in 2022, when salary increases averaged 10.6%, according to Aon. 'This time the range was wide and the reason (for the salary increments) is meritocracy," Seema Nair, chief human resources officer at Flipkart, told Mint in an interview. 'So for somebody who's either been in the top two performance ratings or somebody who got promoted in the last cycle, the ratings have been even more rich." Flipkart has also handed out promotions to about 20% of its employees, in line with last year, Nair said. 'Additionally, our stock option allocation exercise has been extended among a much larger employee pool this year." Across industries, appraisals and salary increments this year are projected to be worse than in 2024 as slowing corporate earnings and lethargic economic growth have constrained budgets, pushing companies to become more tightfisted. 'Talent poaching and attrition are making parts of the e-commerce workforce pretty fragile right now," said Kartik Narayan, chief executive of Teamlease Staffing. 'Companies are handing out 10%+ hikes—sometimes double for top performers—just to hold on to key talent. With 80% of firms struggling to hire, it's less about rewards and more about retaining your critical talent in tech and market facing roles." Also read | Flipkart on track to open 800 dark stores by December as quick commerce booms Flipkart's hiring rush Flipkart plans to hire 5,000 employees in 2025-26 across business categories, including central and regional roles in supply chain, travel booking platform Cleartrip, as well as technology roles in product, design and engineering. The company will also place special emphasis on artificial intelligence roles, Nair said. A sizable portion of the hiring will be centred around Flipkart's quick-commerce operation, Minutes, with a focus on roles in hyperlocal commerce and fashion, Nair added. Flipkart had about 22,000 employees last year. 'Flipkart's plan to hire 5,000 people in 2025 (is a) strong signal they're doubling down on quick-commerce and fintech. With 800+ dark stores coming up, this could really shake things up for established players... others might have to rethink their hiring and retention game," said Narayan of Teamlease Staffing. Flipkart ventured into quick-commerce—which promises delivery of grocery and other essentials within minutes—in August last year to keep up with competition from players like Zepto, Zomato-owned Blinkit, and Swiggy Instamart. Flipkart's hiring plans come as other startups that have been chasing profitability or aiming for a public market listing appear to have gone slow on their hiring, both to save money and figure out how artificial intelligence will change their workflows. Also read | Flipkart fintech 2.0: Can strike gold?
Mint
07-05-2025
- Business
- Mint
Poor visibility pushes India Inc to rework payhike plans
Consultants who advise companies on pay structures expect this year's salary hikes to be less than what they estimated as recently as March, multiple people aware of the matter said. While Deloitte had estimated an average pay hike of 8.8%, Aon had predicted 9.2%. However, actual pay hikes may be even lower in some sectors, executives at these firms said on the condition of anonymity. Revisions are likely particularly in businesses feeling the strain of geopolitical crises, tariff disputes, and cautious client decision-making. In a client note in March, Deloitte had said that the actual pay hikes in FY25 were 9%, against 9.2% it estimated earlier. The consultant said that even though the change was minor, it showed that companies were more bullish about increases than they were eventually able to afford. "For the coming financial year, the data reflects further caution as the aggregate pay increase projection across sectors is expected to be approximately 8.8%," said the note, seen by Mint . Anandorup Ghose, a partner at Deloitte India, agreed hikes may be even lower than 8.8% in some sectors, attributing it to multiple global uncertainties. Also read | Last year's pay hikes were bad enough. Don't ask about this year's. "This year, a lot of externalities are evolving for companies across sectors – there are geopolitical tensions that cannot be fully accounted for, there are macroeconomic concerns based on tariff agreements as well as aspects such as uncertainties in domestic consumer demand resurgence etc.," Ghose told Mint . He said the impact will be widespread: "Given the width of these shifts, it is difficult to identify any one set of industries that will get affected – most will have some implications one way or another." Consultant Aon's Annual Salary Increase and Turnover Survey 2024-25 India in March had projected a 9.2% increase this year, against last year's estimate of 9.5%. The actual average hike in 2024, according to Aon, was around 9.3%. "Most companies continue to adopt a cautious approach while rolling out hikes. The impact of the tariffs—if they were to come through—is likely to be felt only from the next cycle and over a period of time for some select sectors such as banking and possibly IT-enabled services," said Roopank Chaudhary, a partner at Aon specializing in human capital solutions. Chaudhary too agreed the actual pay hikes in some sectors may be below their estimates. According to Aon's survey, the banking sector is expected to offer around 8.8% this year, and the IT-enabled services sector was pegged to give a hike of 9.7%. Read this | Tech's Big Five cautious on salary hikes, hiring However, Aon sought to temper concerns about drastic cuts, stating it was "not seeing any immediate downward projection on salary hikes," Chaudhary told Mint . Nevertheless, the firm indicated that certain sectors are more vulnerable to the current headwinds. In the technology sector, Tata Consultancy Services (TCS) has already postponed wage increases, citing the "uncertainty in the environment." Chief human resources officer Milind Lakkad told analysts in a post-earnings call that the company will wait for clarity to emerge before deciding on wage hikes. Companies with appraisals held across May and July are particularly likely to revise their initial hike plans, according to consultants and HR executives. "We offered a 7-9% increment, whereas last year it was 9-10%. But we know that some of our competitors have revised their hikes given the slump in the job market and poor visibility in the business," a senior executive at a major BFSI firm said on the condition of anonymity. Several factors are prompting the rethink. A sluggish job market, coupled with instances of over-hiring in recent years, has led some to curb aggressive recruitment. Additionally, companies with significant exposure to the US market are increasingly wary of potential policy changes. Also read | Why Cognizant's salary hike announcement is a cause for concern US President Donald Trump's sweeping tariff proposals and a 90-day trade pause have injected significant volatility into global trade and financial markets. Steep American levies on China have raised concerns about a flood of inexpensive exports into other markets, impacting industries from steel and textiles to fisheries and raising fears of prolonged disruption. These uncertainties compound existing global challenges, including Russia's ongoing invasion of Ukraine and the war in West Asia. Some companies are exploring alternative compensation models. "Our hikes are around 10% similar to 2024, but we will bring in variable pay in the junior and middle orders. This was not there earlier, but companies need to be prudent, and this way, work becomes more performance-linked in these choppy markets," said the HR head of a prominent energy firm. Variable pay, typically comprising around 30% of an employee's total cost to the company, ties a portion of compensation to performance metrics. For Indian employees, the current job market increasingly favours those with specialized skills, potentially limiting immediate job mobility and giving companies more leeway to adjust their compensation plans. And read | Big paydays for top talent in tech, consumer, lifesciences even as overall salary hikes moderate
