6 in 10 Indian employers to deploy AI to improve employee reward systems: Report

Six out of 10 employers in India are looking to explore the potential of artificial intelligence AI to improve employee reward systems in the coming three years a new report said on ThursdayThis comes as businesses face a rapidly evolving job market driven by technological advancements and shifting employee expectations According to the report by EY India the biggest change is the growing role of AI in shaping employee compensationEmployers are increasingly turning to AI to streamline processes like salary benchmarking realtime pay equity analysis and creating customisable employee benefits The shift is expected to move from traditional pay models to AIdriven analytics by 2028 the report addedThrough AIpowered platforms companies are now able to offer more personalised benefits and ensure pay equity across different employee groupsldquoWhile salary increments remain steady organisations must go beyond traditional pay structures to attract and retain top talent in the near futurerdquo Abhishek Sen partner and leader Total Rewards HR Technology and Learning People Consulting EY India saidIn addition the report said blockchain technology is emerging as a tool to help companies with secure transparent and automated payroll systems particularly for crossborder compensation Indiarsquos workforce can expect an average salary increase of 94 per cent in 2025At the same time employee attrition or the rate at which employees leave companies has seen a slight improvement decreasing from 183 per cent in 2023 to 175 per cent in 2024When it comes to sectorspecific salary trends the report highlighted that industries like ecommerce financial services and Global Capability Centres GCCs are seeing the highest salary growthEcommerce is expected to lead the way with a salary increase of 105 per cent in 2025 driven by the rise of digital commerce and increasing consumer spendingThe financial services sector is also expected to experience a salary boost of 103 per cent while GCCs are projected to see a 102 per cent increase in salariesIn addition to competitive salaries employees are now placing high importance on flexibilityThe report shows that 90 per cent of employees are working in hybrid setups combining both inoffice and remote work Half of the employers surveyed also reported increasing interest in gig and temporary rolesCompanies that offer flexible working hours and remote work options are more likely to attract and retain talent the report saidThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever