India Inc Bets on Mid-Level Talent; Expects Moderate Salary Hikes: Report

Why It Matters

The moderate wage growth and mid‑level hiring emphasis signal a cautious, data‑driven talent strategy amid rising attrition, impacting cost structures and competitive positioning across Indian enterprises. Companies that adapt to these trends will better retain key talent and align with evolving regulatory and workforce expectations.

Key Takeaways

• Mid‑level roles targeted by 49% of firms
• Salary hikes projected 5‑10% for 2026‑27
• 55% expect attrition 10‑20% next year
• 57% plan compensation restructuring for Labour Code compliance
• North and West zones forecast strongest hiring activity

Pulse Analysis

India’s corporate hiring outlook for 2026‑27 reflects a pragmatic pivot toward mid‑level talent, a shift driven by the twin pressures of talent scarcity and cost containment. The Genius HRTech survey of 2,359 senior leaders shows nearly half of organisations now centre recruitment on professionals who can bridge operational execution and strategic insight. Compared with the aggressive hiring spikes of the post‑pandemic years, this measured approach aligns with a broader macroeconomic slowdown and tighter capital allocation, allowing firms to sustain growth without over‑extending payrolls.

Compensation dynamics are equally nuanced. While a modest 5‑10% salary rise will be the norm for most, over a third of companies are prepared to offer double‑digit increases to secure critical skill sets, especially in digital and tech‑enabled roles. Simultaneously, attrition looms large, with more than half of respondents expecting turnover rates between 10% and 20%, driven by younger workers’ demand for flexibility, purpose, and rapid career progression. The impending Labour Code reforms further compel organisations to redesign pay structures, ensuring compliance while remaining competitive. Continuous engagement, feedback loops, and upskilling initiatives are emerging as essential retention levers.

Strategically, firms are embracing agile, demand‑driven hiring models that blend permanent and project‑based contracts, enabling rapid scaling of capabilities. Regional disparities are evident: the North and West are poised for the strongest hiring activity, while the South grapples with higher attrition risks. Diversity goals are gradually gaining traction, though male‑skewed hiring persists. Companies that integrate flexible work policies, invest in employee development, and navigate regulatory changes adeptly will be best positioned to capture the mid‑level talent pool and sustain productivity in a competitive Indian market.