What to Expect in India's Job Market: Insights for 2026-27
Hiring Trends and Salary Expectations
Mumbai: As concerns about employee turnover rise, Indian companies are expected to concentrate their hiring efforts on mid-level positions, with anticipated salary increases remaining modest at around 5-10% for the fiscal year 2026-27, according to a recent report.
The report from Genius HRTech indicates that 49% of surveyed companies are prioritizing mid-level professionals in their hiring strategies.
In terms of overall workforce growth, 28% of organizations plan to significantly boost hiring by over 10-15%, while 43% foresee only slight increases of 0-5%.
Regarding compensation, a competitive salary environment is anticipated, with 34% of respondents expecting raises above 10%, and 46% predicting moderate increases between 5-10%.
The report highlights that regulatory and labor reforms will be pivotal, with 57% of organizations indicating they will restructure compensation frameworks to comply with new Labor Codes.
Salary increments are expected to favor mid-senior level employees, who will receive 48% of the total increases, while junior and senior levels will receive 26% and 22%, respectively.
Attrition remains a significant concern, with 55% of respondents predicting turnover rates between 10-20%, and 15% expecting rates to exceed 20%.
Mid-senior level employees are particularly vulnerable, with 67% of organizations identifying them as the most likely to leave.
Regionally, the South is projected to experience the highest attrition rates, with 55% of respondents indicating this trend.
Changing workforce expectations are influencing attrition, with 50% of respondents citing higher demands for flexibility, purpose, and rapid career advancement, especially among younger employees, including Gen Alpha and Gen Z.
Moreover, 38% of organizations are recognizing the need for ongoing engagement, feedback, and learning as essential factors for retention.
Concerns about job security have a mixed impact, with 43% of organizations viewing them as moderate or limited contributors to attrition compared to compensation and growth opportunities.
R P Yadav, Chairman and Managing Director of Genius HRTech, stated, "The hiring landscape for 2026-27 reflects a shift towards cautious, data-driven strategies, emphasizing mid-level talent, digital skills, and evolving business requirements. The rising attrition rates underscore the necessity for improved planning and retention strategies."
There is also a trend towards agile, demand-driven hiring, balancing permanent and project roles, driven by the need for speed, skill alignment, technological adaptability, and scalability to ensure sustainable growth.
The findings are based on a survey conducted among 2,359 CXO-level leaders and senior professionals across various industries in India.
The report also notes gradual progress in diversity, with 27% of organizations aiming for a balanced 50:50 male-to-female hiring ratio, while 31% expect a 60:40 split. However, a significant number of respondents still report a male-skewed hiring trend.
Regionally, hiring activity is anticipated to be strongest in the North and West zones, each representing 32% of responses, followed by the East and South.