6 in 10 Indian employers to deploy AI to enhance worker reward methods: Report, ETCFO
Mumbai, Six out of 10 employers in India need to discover the potential of synthetic intelligence (AI) to enhance worker reward methods within the coming three years, a brand new report stated on Thursday.
This comes as companies face a quickly evolving job market, pushed by technological developments and shifting worker expectations. In response to the report by EY India, the most important change is the rising function of AI in shaping worker compensation.
Employers are more and more turning to AI to streamline processes like wage benchmarking, real-time pay fairness evaluation, and creating customisable worker advantages. The shift is anticipated to maneuver from conventional pay fashions to AI-driven analytics by 2028, the report added.
By means of AI-powered platforms, corporations at the moment are in a position to provide extra personalised advantages and guarantee pay fairness throughout totally different worker teams.
“Whereas wage increments stay regular, organisations should transcend conventional pay buildings to draw and retain high expertise within the close to future,” Abhishek Sen, Associate and Chief, Whole Rewards, HR Expertise and Studying, Individuals Consulting, EY India stated.
As well as, the report stated blockchain expertise is rising as a instrument to assist corporations with safe, clear, and automatic payroll methods, notably for cross-border compensation. India’s workforce can anticipate a mean wage enhance of 9.4 per cent in 2025.
On the identical time, worker attrition, or the speed at which staff depart corporations, has seen a slight enchancment, lowering from 18.3 per cent in 2023 to 17.5 per cent in 2024.
On the subject of sector-specific wage tendencies, the report highlighted that industries like e-commerce, monetary providers, and International Functionality Centres (GCCs) are seeing the very best wage progress.
E-commerce is anticipated to cleared the path with a wage enhance of 10.5 per cent in 2025, pushed by the rise of digital commerce and growing shopper spending.
The monetary providers sector can be anticipated to expertise a wage enhance of 10.3 per cent, whereas GCCs are projected to see a ten.2 per cent enhance in salaries.
Along with aggressive salaries, staff at the moment are inserting excessive significance on flexibility.
The report exhibits that 90 per cent of staff are working in hybrid setups, combining each in-office and distant work. Half of the employers surveyed additionally reported growing curiosity in gig and momentary roles.
Firms that supply versatile working hours and distant work choices usually tend to appeal to and retain expertise, the report stated.
–IANS
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