Navigating Compensation: Deloitte India's 2025 Talent Outlook

Deloitte India's Talent Outlook 2025 suggests a projected compensation increment of 8.8% by 2025. While some sectors anticipate stable or reduced pay growth, consumer products expect significantly lower increases. The report emphasizes performance differentiation, with structured upskilling initiatives becoming a strategic priority despite modest hiring optimism and reduced promotion rates.

A new report by Deloitte India forecasts an 8.8% average compensation increase for 2025. The Deloitte India Talent Outlook 2025 report reveals a slight dip compared to 9.0% in 2024, pointing out a considerable focus on cost optimization amidst global and local economic challenges.

Performance and talent differentiation are emphasized as HR strategies continue to evolve in response to controlled attrition and moderate inflation. Notably, while sectors maintain stable or slightly lower pay growth, the consumer products sector faces even smaller budget increments.

The survey also highlights a trend of structured, data-driven upskilling in companies, indicating a shift toward closing talent capability gaps, though challenges remain in implementing consistent competence frameworks. Despite these hurdles, 80% of companies plan to grow their workforce next year.

(With inputs from agencies.)