Attrition in India has dropped from 18.7 to 16.9%

With the spate of layoffs in recent times, it is no wonder that involuntary attrition rate has increased to 4.3 per cent in 2024, from four per cent in 2024. When it comes to employees opting to leave a company on their own, rather than being laid off, the figures have improved from 2022 to 2024. While voluntary attrition was 17 per cent in 2022, it dropped to 14.7 in 2023 and 12.6 in 2024. That means, more employees are trying to hold on to their jobs, realising the uncertainty that prevails in the job market and the economic environment.

Attrition rate in the manufacturing space dropped from 15.4 per cent in 2023 to 14 in 2024. It dropped marginally in the services space, from 19.9 per cent in 2023 to 19.2 in 2024.

The Aon Annual Salary Increase and Turnover Survey 2024-25 India projects that salaries in India will go up 9.5 per cent in 2025.

Eight per cent companies actually gave less than six per cent hike this year, while 34 per cent gave a hike of six to nine per cent.

A good 57 per cent intend to give 9 to 12 per cent increase in salary in 2025, while seven per cent will give over 12 per cent salary hike!

The top management level was witness to the highest drop in pay hikes, while for the junior manager it has been more or less the same.

In 2023, the hike in overall pay for top/senior-level managers was 9.2 per cent, while in 2024, it was eight per cent. In 2023, the merit-based hike for senior managers was seven per cent, while in 2024, it was 5.9. Non-merit hikes were 2.2 per cent in 2023 and 2.1 per cent in 2024.

In 2023, overall pay hike for middle managers was 9.6 per cent, while in 2024 it was 9.3. Merit-based increments for middle managers was 7.2 per cent last year, and has dropped to 6.9 this year. Non-merit hikes for middle managers remains the same at 2.4 per cent.

Junior managers enjoyed an overall increment of 10.2 per cent in 2023 and 10.1 in 2024. Merit-based hike at this level was 7.6 per cent last year, and came down slightly to 7.3 this year. Non-merit hikes were 2.6 per cent for junior managers in 2023 and improved to 2.8 in 2024.