Tech Industry Compensation and Benefits Trends for 2024

As the technology landscape continues to evolve, understanding compensation trends and workforce dynamics becomes crucial for organizations aiming to attract and retain top talent. The latest findings from the nasscom – 德勤 India Technology Industry Compensation Benchmarking Survey Findings: 2024 sheds light on the current state of the industry, revealing significant shifts in salary increments, performance evaluation, and the demand for specialized skills.

Salary Increments on the Rise Salary increments in the technology sector are expected to average 8.5% for the next fiscal year as against 8.6% in FY2024 trend. The most prevalent increment cycle among organizations remains from April to March, closely followed by January to December. Approximately 40% of organizations link salary increments to individual performance, underscoring the growing focus on merit-based compensation. The report also highlights that promotes can expect an additional 7% promotional increment, reflecting a commitment to rewarding high performers.

Performance Evaluation Trends A significant finding from the survey is the continued reliance on the bell curve distribution method for assessing individual performance. Over 60% of organizations continue to use this method, with a slight shift suggesting fewer promotions compared to last year. The performance distribution shows that 60.6% of employees are rated as "Exceeds Expectation" or higher, underscoring the need for organizations to clearly define criteria for recognizing and rewarding top performers.

The Premium for Specialized Skills In an increasingly competitive market, organizations are willing to pay a premium for specialized skills. Niche skills, especially in AI and machine learning, now attract higher salary premiums, rising from 22-25% to 30-35% this year. ?Other in-demand skills such as cloud computing, cybersecurity, and full-stack development also reflect significant salary premiums, highlighting the importance of upskilling and reskilling initiatives to meet evolving industry demands.

Workforce Evolution and AI Integration The integration of AI into the technology sector is reshaping workforce requirements. The report highlights the growing need for cross-disciplinary skills that blend AI expertise with industry knowledge. Demand for AI product managers is increasing, with 91% of organizations identifying a need for these roles to strengthen AI product oversight. Ethics and responsible AI skills are gaining prominence, reflecting the evolving expectations for AI talent. The insights from the Nasscom – Deloitte India Technology Industry Compensation Benchmarking Survey Findings: 2024 ?provides a comprehensive overview of the rewards and benefits scenario in the tech industry. ?and factors that will aid organizations ?in attracting and retaining top talent. ?For a deeper dive into these findings and actionable insights, download the full report here ?? https://community.nasscom.in/communities/future-work/india-technology-industry-compensation-benchmarking-survey-findings-2024