Technology Services Compensation Benchmarking Survey Findings: 2021

The Pandemic has accelerated digital transformation with tech budgets focused on 
•    Workforce transformation
•    Tech modernization
•    Digital acceleration
 

After facing a short setback last year, companies have resumed an increase in salary increments
•    Technology services sector provided an average increase of 8.8% in 2021 which is expected to go up to 9% to 11% in 2022
•    While Performance continues to remain one of the key drivers for differentiating salary increments, other factors include Potential of the Employee and Compensation Positioning- the degree of differentiation in pay increments for top performers goes to the extent of 1.7X-1.8X.
•    The Variable Pay as a percentage of Total Cost has increased by ~7% over the last 2 years predominantly driven by IT Services and BPM organizations
 

Organizations are hiring at a pace higher than pre-COVID levels to address the growing attrition rates
•    About 91% organizations have resumed hiring at the same pace as they used to hire prior to COVID-19
•    Increase in Compensation and Benefits, New Roles & Career Growth are predominant reasons for growing attrition
 

The Future depends on effective & holistic talent management to build a great Workforce, Work & Workplace
•    Future of Work: Long term use of Technology, Innovation in working models, AI powered processes
•    Future of Workforce: Multi mode Workforce, Self driven capability development models, Customized policies (full-time / gig /partners) 
•    Future of Workplace: Adoption of new ‘ways of working’, Employee safety, engagement and wellness, Productivity and business continuity