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India Inc Expects Moderate Salary Hikes, Focus on Mid-Level Roles in 2026-27

Amid concerns over attrition, India Inc is expected to prioritize hiring mid-level professionals, with salary hikes likely to remain moderate at around 5-10 per cent in 2026-27.

According to a report by Genius HRTech, workforce staffing services and HR solutions provider, the hiring demand will be concentrated at the mid-level, with 49 per cent of respondents identifying mid-level professionals as the primary focus area. This is reflected in the overall workforce expansion, where 28 per cent of organisations plan to increase hiring significantly by more than 10-15 per cent, while 43 per cent expect only minimal growth within 0-5 per cent.

Hiring GrowthPercentage
0-5 per cent43 per cent
10-15 per cent28 per cent
More than 15 per cent29 per cent

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On the compensation front, organisations are preparing for a competitive salary landscape in 2026-27. As 34 per cent of respondents plan salary increases exceeding 10 per cent, while 46 per cent anticipate moderate increments between 5-10 per cent, the report revealed.

Salary IncreasePercentage
5-10 per cent46 per cent
More than 10 per cent34 per cent
Less than 5 per cent20 per cent

Regulatory and labour reforms are expected to play a crucial role, with 57 per cent of organisations indicating significant restructuring of compensation frameworks to ensure compliance, keeping in mind the restructuring of the Labour Codes.

Increment distribution is expected to favour mid-senior level employees at 48 per cent, followed by junior and senior levels at 26 per cent and 22 per cent, respectively.

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Increment DistributionPercentage
Mid-senior level employees48 per cent
Junior level employees26 per cent
Senior level employees22 per cent
Other4 per cent

Meanwhile, the report found that attrition continues to be a key area of concern for organisations with a majority 55 per cent of respondents anticipating attrition levels between 10-20 per cent, while 15 per cent expect the level to exceed 20 per cent.

Attrition LevelPercentage
10-20 per cent55 per cent
5-10 per cent20 per cent
More than 20 per cent15 per cent
Less than 5 per cent10 per cent

Mid-senior level employees are the most vulnerable segment, with 67 per cent of organisations highlighting them as most susceptible to attrition. Regionally, the South zone stands out, with 55 per cent of respondents predicting the highest attrition levels.

Evolving workforce expectations are significantly influencing attrition trends with 50 per cent attributing it to higher expectations around flexibility, purpose and faster career progression, particularly among younger employees, considering the introduction of Gen Alpha and the Gen Z workforce influence. Additionally, 38 per cent of organisations are witnessing an increased need for continuous engagement, feedback and learning as critical retention drivers.

Job security concerns present a mixed impact, with most organisations (43 per cent) viewing them as either moderate or limited contributors compared to compensation and growth factors for attrition.

The report is based on a survey among 2,359 CXO-level leaders and senior professionals across all industries, pan-India. The report also revealed that diversity trends indicate gradual progress, with 27 per cent of organisations expecting a balanced 50:50 male-to-female hiring ratio and 31 per cent projecting a 60:40 male-to-female hiring split.

Diversity TrendsPercentage
50:50 male-to-female hiring ratio27 per cent
60:40 male-to-female hiring ratio31 per cent
Skewed ratio towards male hiring42 per cent

Regionally, hiring activity is expected to be strongest in the North and West zones, each accounting for 32 per cent of responses, followed by the East and South.

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