Mumbai: Amid concerns over attrition, India Inc expects hiring to remain focused on mid-level roles, with salary hikes likely to stay moderate at around 5-10 per cent in 2026-27, a report said Tuesday.
Hiring demand is expected to be concentrated at the mid-level, with 49 per cent of respondents identifying mid-level professionals as the primary focus area, according to a report by workforce staffing services and HR solutions Genius HRTech.
In terms of overall workforce expansion, the report revealed that 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.
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.
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.
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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.
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.
It revealed that 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, said the report.
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, it said.
Job security concerns present a mixed impact, with most organisations (43 per cent) viewing them as either moderate or limited contributors (43 per cent) compared to compensation and growth factors for attrition, said the report.
“The 2026-27 hiring reflects a shift to cautious, data- driven strategies, with focus on mid-level talent, digital capabilities and evolving business needs. Rising attrition highlights the need for stronger planning and retention,” Genius HRTech Chairman and Managing Director R P Yadav said.
There is also a move towards agile, demand-based hiring, balancing permanent and project roles, which will mainly be driven by speed, skill alignment, tech adaptability and scalability to support sustainable growth, he added.
Workforce staffing services and HR solutions Genius HRTech 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.
However, a notable share of respondents still indicated a skewed ratio towards male hiring, said the report.
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, added the report.
PTI