Korn Ferry

2024 ANNUAL
REWARDS WEBINAR
January 2024

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Meet our speakers for today

Kartikey Singh Amer Haleem Guillaume Jeanpierre Vasudha Handa

Senior Client Partner – Partner, KF Digital Associate Director, KF Senior Director TR and WM,
APAC TR & WM Head Digital ASEAN and Indian Sub-
Continent

© 2024 Korn Ferry 2

 AGENDA:
CHANGES IN
ECONOMIC REWARDS
OUTLOOK STRATEGY

MARKET JOB
REWARDS ARCHITECTURE
TRENDS

Slides from today will be shared post-event

© 2023 Korn Ferry

© 2024 Korn Ferry 3
1. ECONOMIC
OUTLOOK

© 2024 Korn Ferry 4

IMF: World Economic Outlook, Oct 2023

The global economy Despite the impact of the pandemic, the Russia-
Ukraine and ME conflicts, and inflationary pressures,
is limping along, the global economy has shown resilience but is
grappling with a slow and uneven recovery.

not sprinting Factors Influencing Economic Dynamics

Service Sector and Manufacturing Trends:

GDP Growth, %
The service sector's recovery supported certain economies but is
now weakening, impacting services inflation and labor markets,
3.5%
alongside a persistent manufacturing slowdown.
Global 3.0%
2.9%
Tightening Monetary Policy's Impact:
3.9% Efforts to curb inflation through tighter monetary policies are
Asia 4.6% affecting credit conditions, housing markets, and investment
4.2% differently across countries.

5.5%
ASEAN-5 4.2% Commodity Price Shock:
4.5% Last year's commodity price shock impacted economies
differently, especially those heavily dependent on Russian
2022 2023 (E) 2024 (F) energy imports, contributing to inflationary pressures

Source: IMF, Global Economic Outlook, Oct 2023.

ASEAN-5 comprises Indonesia, Malaysia, Philippines, Singapore, and Thailand.
© 2024 Korn Ferry 5
APAC remains the most dynamic region
in GDP growth
WORLD APAC
2022 (A): 3.5% 2022 (A): 3.9%
2023 (E): 3.0% 2023 (E): 4.6%
2024(F): 2.9% 2024(F): 4.2%
10.0%
8.0%
6.0%
4.0%
GDP (In%)

2.0%
0.0%
-2.0%
-4.0%
-6.0%
AU CN HK IN ID JP KR MY NZ PH SG TW TH VN UK US
2022 (A) 3.7% 3.1% -3.5% 7.3% 5.3% 0.9% 2.6% 8.7% 2.3% 7.6% 3.6% 2.4% 2.6% 8.0% 4.3% 1.9%
2023 (E) 1.9% 5.5% 3.4% 6.5% 4.9% 1.8% 1.3% 4.0% 1.1% 4.1% 0.9% 1.2% 2.8% 4.7% 0.4% 2.4%
2024 (F) 1.9% 4.8% 3.2% 6.0% 5.1% 1.4% 2.4% 4.4% 1.5% 5.9% 2.4% 3.3% 4.2% 5.9% 0.8% 0.9%
Source:
- IMF, Global Economic Outlook, Oct 2023
- Economist Intelligence Unit, updated as of 1 December 2023.
(A) – Actual , (E) – Estimated, (F) – Forecasted. ASEAN-5 comprises Indonesia, Malaysia, Philippines, Singapore, and Thailand

© 2024 Korn Ferry 6

APAC Inflation Reversal: From Peaks to Tapering; India
projects further dip in inflation
WORLD APAC
2022 (A): 8.7% 2022 (A): 6.6%
2023 (E): 6.9% 2023 (E): 5.2%
2024(F): 5.8% 2024(F): 5.5%
9.0%
8.0%
7.0%
6.0%
Inflation (In %)

5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
AU CN HK IN ID JP KR MY NZ PH SG TW TH VN UK US
2022 (A) 6.6% 1.9% 1.9% 6.7% 4.2% 2.5% 5.1% 3.4% 7.2% 5.8% 6.1% 2.9% 6.1% 3.2% 7.9% 8.0%
2023 (E) 5.7% 0.7% 2.0% 5.7% 3.8% 3.2% 3.7% 2.6% 5.6% 6.0% 4.9% 2.5% 1.6% 3.4% 6.8% 4.1%
2024 (F) 3.1% 2.0% 2.4% 4.8% 2.5% 2.0% 2.1% 2.4% 2.9% 3.9% 3.6% 2.0% 2.7% 3.2% 2.7% 2.6%
Source:
- IMF, Global Economic Outlook, Oct 2023
- Economist Intelligence Unit, updated as of 1 December 2023
(A) – Actual , (E) – Estimated, (F) – Forecasted. ASEAN-5 comprises Indonesia, Malaysia, Philippines, Singapore, and Thailand

© 2024 Korn Ferry 7

What to expect in
2024?
Key Risks to the Global Economy

Real Estate Crisis in China Geopolitical and Climate- Persistently High Inflation and
Related Disruptions Fiscal Vulnerabilities
The real estate crisis in China Potential volatility in commodity Despite decreasing, inflation
poses a significant risk. Balancing prices due to geopolitical remains high, and fiscal buffers
the need for confidence tensions and climate change have eroded in many countries,
restoration while avoiding rapid disruptions, particularly in oil and raising concerns about debt
declines in property prices is food markets, presents a risk to vulnerabilities and fiscal
crucial to prevent adverse the global economy's stability. resilience.
impacts on balance sheets.

© 2024 Korn Ferry 8

Charting the course
for India in 2024…..
The year was marked by significant global events like the U.S. hitting its debt ceiling in January, huge
bank failures such as the collapse of Silicon Valley Bank in March, and the ongoing Israel-Hamas war.

Strong economic growth in the first The economy is set to stabilize in With an eye on the future, the
quarter of FY23 helped India to 2024 with a forecasted growth rate country aims to achieve developed
become US$ 3-trillion+ economy of 6% (Dec’23 estimate). economy status by 2047,
making it the fifth-largest in the demonstrating a clear trajectory
world, leaving the UK behind. India’s strategic focus on reducing towards sustained growth and
logistics costs is pivotal for its development.
India’s economy grew by 7.6% in ambition to become a key player in
the Oct-Nov quarter of 2023, global supply chains and become a
compared to a year ago, US$5-trillion-economy by the end of
surpassing all expectations. 2025.

© 2024 Korn Ferry 9

2. CHANGES IN
REWARDS STRATEGY

© 2024 Korn Ferry 10

Poll Question

Q. Have you made any adjustments to your organization’s rewards programs design in the past
year to align with market trends?

Yes 50%

No 50%

% of responses

Q. Do you plan to make any adjustments to your organization's rewards programs design in the next
year to align with market trends?

Yes 66%

No 34%

% of responses

© 2024 Korn Ferry 11

 Reward Strategy
Changes made by organizations in India

82% organizations have reported

adjustments in their reward program
designs in the last 2 years.

64% report significant changes to be

made in next 2 years, reflecting a
prevailing trend in adaptation.

Source: KF Global Rewards Pulse Survey 9th Edition, Oct 2023.

© 2024 Korn Ferry 12
The impact on Reward Strategy
External Drivers of Change

Competitive landscape 26% 60% 9% 5% 0%

Availability and price of talent 33% 56% 9% 2% 0%

Economic environment 18% 60% 20% 2% 0%

Regulatory landscape 15% 42% 36% 5% 2%

Evolving technology and artificial intelligence 15% 46% 33% 6% 0%

Strongly Agree Neither Agree Disagree Strongly

Agree nor Disagree Disagree

Source: KF Global Rewards Pulse Survey 9th Edition, Oct 2023. © 2024 Korn Ferry 13
 The impact on Reward Strategy
Internal Drivers of Change

Business strategy and goal alignment 27% 64% 4% 5% 0%

Talent strategy alignment 22% 67% 7% 4% 0%

Diverse and inclusive workforce 17% 57% 22% 4% 0%

Shift in culture 7% 62% 24% 7% 0%

Change in employee expectations 17% 46% 33% 4% 0%

Improved communication and transparency 13% 41% 37% 9% 0%

Change in leader perspectives 15% 30% 44% 11% 0%

Strongly Agree Neither Agree Disagree Strongly

Agree nor Disagree Disagree

Source: KF Global Rewards Pulse Survey 9th Edition, Oct 2023. © 2024 Korn Ferry 14
 REWARD PROGRAM
RECENT & UPCOMING CHANGES

The mix of total compensation between base, variable pay

29.6% 31.5% 38.9%
and benefits

Employee benefits and well-being programs 24.1% 42.6% 33.3%

• Adjustments in reward programs
focus on the mix of base salary,
The reward strategy for key segments or subsets of the variable pay, and benefits
24.1% 35.2% 40.7%
workforce

• Continued emphasis on employee

The job grading/leveling/architecture processes 20.4% 37.0% 42.6%
benefits and well-being programs

The competitiveness philosophy of total rewards 20.4% 40.7% 38.9% • Increased focus on tailoring
reward strategies for key
The linkages between pay and performance 18.5% 37.0% 44.5% employee segments

The overarching reward strategy across the workforce 16.7% 37.0% 46.3%

Significant Moderate Little to No

Change Change Change
15 © 2024 Korn Ferry 15
REWARD PROGRAM
RECENT & UPCOMING CHANGES
(CONTINUED)

Focus on linking rewards to DEI and ESG objectives 14.8% 33.3% 51.9%

The suite of non-financial rewards 13.0% 33.3% 53.7%

The internal equity philosophy of total rewards 13.0% 38.9% 48.1%

Balance between management discretion and structured

9.3% 33.3% 57.4%
decision making

Governance and accountability of reward programs 7.4% 37.0% 55.6%

Reward communications and transparency strategy 7.4% 51.9% 40.7%

Significant Moderate Little to No

Change Change Change
© 2024 Korn Ferry 16
3. MARKET REWARDS
TRENDS

© 2024 Korn Ferry 17

3.1 INDIA REWARDS
TRENDS

© 2024 Korn Ferry 18

Korn Ferry 2023 India Database

13
Industry cuts
4%
5% 9%
Chemicals

Construction & Building Materials

3%
Consumer Goods

76
12% Financials
8%

706
Health and Life Sciences

Job functions(+1% vs 2022) High Technology

5%
7% Industrial Goods - Automotive

180
2%
Industrial Goods - Other

organizations 2% Natural Resources

with 1 million+ incumbents Oil and Gas & Utilities
Job Sub-functions (+1% vs 2022)
13% 8%
Others*

1479
Public Sector and NFP

8% 14% Retail

Services
Unique jobs (+10% vs 2022)

Source: Korn Ferry 2023 India Compensation Survey. Effective date: 1 November 2023.
*Other include Transportation, Leisure and Hospitality, Media
© 2024 Korn Ferry 19
3.2 SALARY INCREMENT
TRENDS

© 2024 Korn Ferry 20

 SALARY INCREMENTS
APAC Region
Indian organizations project a 9.7% median salary increase for 2024,
surpassing the actual 9.5% median increase in 2023. This marginal uptick
9.7%
reflects a cautious approach, with organizations diligently scrutinizing cost
structures across diverse industries.

6.5% 6.7%
5.6% 5.6%
5.0% 5.0%
4.0% 3.9% 4.0% 4.0% 4.0%

2.5%

Hong New Philippine Singapor

Australia China India Indonesia Japan Korea Malaysia Thailand Vietnam
Kong Zealand s e
2022 Increase 3.1% 5.8% 3.5% 9.4% 5.2% 2.0% 4.3% 4.8% 2.5% 5.0% 3.5% 4.2% 6.7%
2023 Increase 4.0% 5.7% 3.7% 9.5% 6.4% 2.7% 4.8% 5.0% 4.3% 5.3% 4.0% 5.0% 6.8%
2024 Forecast 4.0% 5.6% 3.9% 9.7% 6.5% 2.5% 4.0% 5.0% 4.0% 5.6% 4.0% 5.0% 6.7%

Source: Korn Ferry 2023 Compensation Surveys.

© 2024 Korn Ferry 21

Poll Question

Q. What is the promotion increase you are planning to give in 2024?

10% - 15% 74%

15% - 20% 26%

> 20% 0%

% of responses

© 2024 Korn Ferry 22

 PROMOTIONAL
Actual Salary Movement
2022 to 2023 INCREASES* ON TOP OF
MERIT INCREASE IN INDIA

All Industry = 4.4%

Same Employee
Same Company

13.9%
9.4%
increase

in salaries is observed based on

actual salary data submitted 6.8%
One step Two steps
promotion promotion

Source: Korn Ferry 2023 India Compensation Survey *This is over and above 9.4% increment.
© 2024 Korn Ferry 23
23
 2022 (A)

Salary Movement & Forecasts in India

2023 (A)
2024 (F)

By Industry 9.5%
8.5%
9.9%
9.9%
9.8%
10.0%
Industrial
Services Goods -
8.5%
Others
9.4% 8.5%
Construction
9.6% Chemicals 9.8%
& Building
Material 10.0%

9.8% 9.7%
9.1% Life Sciences
Forecasted Consumer 8.3%
9.5% & Healthcare increase Goods 8.7%
for India
(All Industries)

8.0%
9.9%
Oil and Gas
(Includes
9.7% Retail
8.5%
9.1%
Utilities)
9.5% 10.0%

Industrial
8.5% Goods -
Automotive IT Services 8.5%
9.6% 7.4%
9.7% Financial 7.8%
Services IT Captives &
Product Cos.
8.5% 11.6%
9.3% 9.3%

Source: Korn Ferry 2023 India Compensation Survey, 10.0% 10.0% © 2024 Korn Ferry 24
Korn Ferry 2023 Salary Movement & Forecasts Pulse Survey
3.3 COMPENSATION
TRENDS

© 2024 Korn Ferry 25

Poll Question

Q. At which management level do you think salaries in India have stagnated over the years?

Senior Management Level 30%

Middle Management Level 43%

Junior Management including Entry Level 27%

% of responses
Salary Increments (Journey over the years)
All India Market (Employee categories) 18 %
2020 to 2023, HRL 12-20
Average movement of market data
from 2020 to 2023

Average Salary Increase of Median Fixed Annual Cash Fixed Annual Cash in lakhs per annum (INR)

80.0
2020
2021
20% 60.0
19% 2022
2023
% Change

40.0
11%

20.0

0.0
Senior Middle Junior 20* 19 18 17 16 15 14 13 12
Management Management Professionals
Korn Ferry Hay Reference Levels
Korn Ferry Hay Reference Levels
Senior Management Junior Professionals
Source: Korn Ferry 2023 India Compensation Survey (Including Entry level)
*Level 20 onwards, we have Executive levels
© 2024 Korn Ferry 27
Actual Salary Movement across the Pay Range
At Fixed Annual Cash, General Industry vs. Other Industries
10th Percentile 90th Percentile
2022 Base Line
Maximum Movement

General Market +3% -8%

Chemical +7% -12%

O&G +9% -2%

+15% -4%
Healthcare & LS

Industrial Goods +3% -7%

+1%
Stable Movement

High Technology -6%

Retail +1% -6%

Construction & Building +2% -4%

Materials
© 2024 Korn Ferry 28
3.4 PAY DIFFERENTIALS

© 2024 Korn Ferry 29

 = GI

< GI

Pay Differential – Junior Professional across Industries > GI

Fixed Annual Cash, HRL 12-14

For Junior Professionals, Chemicals, Consumer Goods and Oil & Gas and Utilities industries pay on the higher side
while all others pay consistently w.r.t general India market.

General Industry (GI) = 100%

106%

107%

116%
99%

92%

99%

93%

98%

95%
Chemicals Construction & Consumer Healthcare & High Technology Industrial Goods Oil & Gas and Retail Services
Buidling Material Goods Life Sciences - Auto & Others Utilities
Source: Korn Ferry 2023 India Compensation Survey

© 2024 Korn Ferry 30

 = GI

< GI

Pay Differential – Middle Management across Industries > GI

Fixed Annual Cash, HRL 15-17

High Tech sector now also has a higher pay differential w.r.t general India market. Oil & Gas, Chemicals and Consumer
goods continue to above the overall levels.

General Industry (GI) = 100%

106%

108%

105%

116%
99%

99%

96%

99%

98%
Chemicals Construction & Consumer Healthcare & High Technology Industrial Goods Oil & Gas and Retail Services
Buidling Material Goods Life Sciences - Auto & Others Utilities
Source: Korn Ferry 2023 India Compensation Survey

© 2024 Korn Ferry 31

 = GI

< GI

Pay Differential – Senior Management across Industries > GI

Fixed Annual Cash, HRL 18-20

Most sectors pay either at par with or higher than general India market. Industrial Goods Auto & Others), retail and
services are marginally behind.

General Industry (GI) = 100%

100%
103%

102%

103%

100%

109%
96%

95%

98%
Chemicals Construction & Consumer Healthcare & High Technology Industrial Goods Oil & Gas and Retail Services
Buidling Material Goods Life Sciences - Auto & Others Utilities
Source: Korn Ferry 2023 India Compensation Survey

© 2024 Korn Ferry 32

Pay Differential across Employee Groups
By Org Size (Headcount)

Average Salary Differential of Median Fixed Annual Cash

All India Market - Employee categories (HRLs 12 to 20)

• Large organizations (>10,000

103.6%
employees) offer the lowest differential

102.1%
for junior professionals, whereas those

101.2%
with 2,000-10,000 employees provide a

100.3%

100.2%
100.0%

100.0%
higher pay differential.

99.5%

98.4%
• This compensation pattern is driven by
the need for these companies to
attract and retain talent from the
broader market.

Headcount < 2,000 employees

Headcount 2,000 - 10,000 employees

Headcount > 10,000 employees

Senior Management Middle Management Junior Professional

Source: Korn Ferry 2023 India Compensation Survey

© 2024 Korn Ferry 33

Pay Differential based on ownership of Organizations
By Ownership and Revenue range

• Historically, foreign-owned organizations have always Average Salary Differential of Median Fixed Annual Cash
commanded a slight pay premium over domestically- All India Market (HRLs 12 to 20)
owned organizations.

General Industry (GI) = 100%

• But over the years, the premium has almost diminished, 104%
dropping to 3%. 102%
99% 101% 101%
100% 99%

96%
Premium of Foreign-Owned Organizations over
the years

9%

Domestically Owned Organizations Foreign Owned Organizations

Revenue Range < 500 Cr

3%
Revenue Range 500 Cr - 2,000 Cr
Revenue Range 2,000 Cr - 7,000 Cr
2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenue Range > 7,000 Cr

Source: Korn Ferry 2023 India Compensation Survey

© 2024 Korn Ferry 34

3.5 PAY MIX & PAY
FOR PERFORMANCE

© 2024 Korn Ferry 35

How Salaries are structured in India
Pay Mix as a % of Total Compensation
2023 General Industry
Fixed Compensation Short Term Incentives Long Term Incentives

11% 4%
14% 10%

2023 15%
17%
Senior Middle Junior
Management Management Professionals

69% 74%
86%

2%
15% 9% 9%
2018
11%
11%
Senior Middle Junior
Management Management Professionals

74% 80% 89%

Source: Korn Ferry 2023 India Compensation Survey © 2024 Korn Ferry 36
*Fixed Compensation includes basic salary, fixed allowances and benefits © 2023 Korn Ferry 36
Poll Question
Q. If your Solid performers get X as short-term incentive, how much do you give your top performers?

1.25X 30%

1.5X 48%

2X 20%

3X 1%

% of responses
Pay for Performance
By Employee Categories

Median Multiplier basis Performance Rating Spread of employee basis Performance Rating (In %)

100%

1.6X • Exceeds
Expectation
80%

% of Employees
60%

40%

1X • Meets Expectation 20%

0%
Middle
Supervisory / Senior
management /
Junior management /
Seasoned
professional Executive

0.3X • Did not meet professional

Above Expectations 16% 19% 24%
expectation
Meets Expectations 80% 77% 74%
Below Expectations 4% 4% 2%
Source: Korn Ferry 2023 India Compensation Survey
© 2024 Korn Ferry 38
3.6 EMPLOYEE
TURNOVER

© 2024 Korn Ferry 39

Employee Turnover
2021 to 2023
Over the past three years, average turnover has maintained a consistent trend, reaching 16% in the last 12 months.
Maximum turnover has been observed in supervisory level.

Overall Organization Average Turnover Organization-wide Median Employee Turnover

(Trend over the years) (By Employee Categories)
18.0%

16.0%
Total Voluntary
Employee Categories
Turnover Turnover
Employee Turnover (In %)

14.0%

12.0%

10.0% Senior Management 7.5% 5.5%

8.0%

6.0% Middle Management/

9.6% 9.0%
Seasoned Professionals
4.0%

2.0% Supervisory /
13.0% 10.0%
0.0% Junior Professionals
2021 2022 2023
Total Turnover 16.5% 17.0% 16.0%
Voluntary Turnover 13.3% 14.5% 14.1%

Source: Korn Ferry 2023 India Compensation Survey

© 2024 Korn Ferry 40
Employee Turnover
By Industry
• Last two years: Ambitious hiring across industries due to pent up demand and hiring freeze
during the pandemic.
• This year: Decline in new hiring; focus on retaining critical talent across industries.
• Turnover dynamics: Voluntary turnover ratio is steady, but involuntary turnover increased at the end of 2023, especially in the
High-Tech sector.

Employe Turnover By Industry (In%)

30.0%
Employee Turnover (In%)

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%
Construction Healthcare Oil &
Financial Consumer High Industrial
Chemicals and & Gas(includes Retail Services
Services Goods Technology Goods
Materials Lifesciences Utilities)
2021 20.0% 8.0% 21.0% 7.5% 11.0% 21.0% 9.0% 8.0% 11.5% 19.0%
2022 19.0% 8.0% 15.0% 8.2% 19.0% 25.0% 13.0% 7.0% 14.3% 28.0%
2023 17.1% 10.2% 17.0% 9.7% 17.0% 14.2% 8.5% 14.0% 18.0% 10.6%

Source: Korn Ferry Salary Movement & Forecasts Pulse Survey – India, October 2023
© 2024 Korn Ferry 41
4. JOB
ARCHITECTURE
To move from managing pay
to managing talent

© 2024 Korn Ferry 42

The world of work is changing
Business transformation is taking place at unprecedented speed

Accelerated change to Organizations are creating new ways

organization structures for work to be done amidst turbulence
24% of organizations have, or are
and uncertainty, but…
considering changes to their
headcount and structure.1

Purpose and values drive work.

Remote working is
becoming the norm Work sits at the core of how businesses
63% of professionals will work more realise their potential.
virtually in the future.1

To achieve success, businesses must

New jobs emerging reimagine how work is performed, and
New jobs are being created with no
value is delivered.
precedent for their requirements.

© 2024 Korn Ferry 43

So, what is expected to happen?

Organizations will hire for skills and competencies HR’s focus must shift to
attract and retain talent.

The workforce demographics will have more Gen Z

and Millennials. L&D being a key driver
of engagement.

Employees who feel they are progressing in

their careers are more likely to stay

Employees today are primarily concerned

with increasing their career resiliency

© 2024 Korn Ferry 44

The intersection
between jobs and
talent is
getting unclear
Take the 3 P’s model for
determining the Person
PERSON
How do we manage when
the nature of positions,
performance expectations
and pay are changing
regularly?
PAY

© 2024 Korn Ferry 45

 Like all “big problems”, we break them
down into their components

Strategic
Business Context
Challenges Behavioral Competencies

Tasks Skills Technical Skills Skill Components

Responsibilities
Key
Tools
Performanc
e Indicators Tasks Objectives
Experience
Work
Characteristics
Backgroun Education
d
Certifications
Business
Outcomes
Impact

Motivation Personal Attributes

Drivers
Traits Cognitive Ability
© 2024 Korn Ferry 46
 And use the pieces as a foundation for the future,
a Job Architecture framework

Step 1 Step 2 Step 3 Step 4

Help employees find their

Define Role Profiles Define Levels of Work Set up Job Families way, and give them a
roadmap

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© 2024 Korn Ferry 47

Why?
Because someone’s future
prospects provide value to them
today…

…and providing clarity on those prospects is

value delivered, and another lever for
organizations in the war for talent

© 2024 Korn Ferry 48

 A universal language across all your talent solutions
Job Design
Strategic Alignment Describe jobs using a common and consistent
Design success profiles with clear linkages to taxonomy for responsibilities, skills,
enterprise wide values and culture competencies, education and experience

Strategic Workforce Planning Pay Benchmarking

Leverage the job architecture for modeling Improve the validity of job matching and
current, future and emerging work market pricing through mapping your work to
KF Pay benchmark jobs.

Organization Design Pay Equity

Assess spans and layers by measuring KORN FERRY Compare like jobs within and across functions to
job size differentials in reporting ARCHITECT support internal pay equity analysis and
structures structural inclusion strategies

Succession Planning Reward Cost Optimization

Define success profiles for leadership Leverage work measurement to identify
assessment. Clarify requirements, measure over-graded jobs that are driving pay
job stretch, and articulate succession risk escalation

Talent Development Career Mobility

Create roles and special assignments that Compare accountability, capability and
identity across jobs to better understand and
provide on the job development experiences
plan career journeys

© 2024 Korn Ferry 49

 Latest Events and Thought Leadership
Your feedback is very
important to us Transform for Growth: 2024 Talent
Skills Acquisition Trends
Access our latest insights on skills at Download our most updated talent
this link acquisition report via this link
Please complete a short
survey form via this link: More about KF Pay The Potential Code
Explore what the KF Pay platform How to help people be their
Feedback form offers via this link best, learn via this link

Global Rewards Pulse KF People Strategy &

Survey 9th Edition Performance Solution
Download our latest pulse Competitive edge starts with your
survey results via this link people. The goal: a people strategy that
raises performance. Check out this link.

© 2024 Korn Ferry 50

 Submit your data to us for 2024
Annual Rewards Survey and get
access to Korn Ferry market data!

KF welcomes 2024! Contact us today!

Vasudha Handa Vaishali Panchal
Senior Director Associate Consultant
[email protected] [email protected]

Hitesh Mandru Saksham Sharma

Associate Consultant Analyst
[email protected] [email protected]

© 2024 Korn Ferry 51

Q&A

© 2024 Korn Ferry 52

Q&A

Q1. What are your views on pay for performance. Are Long term incentives still a significant component of Pay or are we witnessing any shift?
Ans.
Navigating a dynamic corporate landscape, organizations confront challenges in setting meaningful long-term (3-5 years) targets affecting
equity-based Long-Term Incentives (LTIs). Market volatility and government regulations further complicate LTI frameworks for senior and middle
management. Despite these hurdles, LTIs remain pivotal, serving as a buffer against rising operational costs by aligning performance with
compensation. To adapt, organizations are expanding LTI target ranges, introducing flexibility. This nuanced strategy enables a resilient
response to market fluctuations and regulatory shifts while preserving the integral role of LTIs in attracting and retaining top talent in a
performance-driven compensation paradigm.

Q2. What is your view on pay transparency for Asia? Are the organizations ready?
Ans.
The promotion of pay transparency has been notably spearheaded by the West and EU through diverse policies. Anticipated is a growing
inclination towards enhanced transparency in compensation within the Asian context, with organizations poised to initiate the adoption of
partial pay transparency measures over the next 5-10 years.

© 2024 Korn Ferry 53

Q&A (Contd.)

Q3. What are companies doing in terms of tailoring reward strategies for key employee segments?
Ans.
Organizations predominantly pursue three avenues when customizing reward strategies for crucial employee segments:
1. Divergent salary structures for distinct job functions or workforce segments.
2. Homogeneous salary structures across the workforce, achieved by expanding pay ranges across levels and minimizing differentials
between job functions.
3. Uniform salary structures across the workforce, accompanied by elevated Variable Pay for job functions deemed highly valuable,
possessing scarce resources, or to remain competitive with industries outside the organization's core functions.

Q4. How do companies manage the rise in Senior Management salary costs, with about 9% increase every year, whereas market data does
not show as high increase?
Ans.
Aligning executive pay ranges with prevailing market trends is a crucial endeavor. Intentionally placing high-performing individuals and senior
leadership roles at percentiles 66 to 75 of the market range serves as a strategic measure. This positioning acts as a protective shield,
safeguarding these pivotal positions from potential attrition.

© 2024 Korn Ferry 54

Q&A (Contd.)

Q5. Can you share the correlation of employee categories and KF HRLs?
Ans.
Senior Management HRL 18 – 20

Middle Management HRL 15 – 17

Junior Professionals HRL 12 – 14

Q6. What drives the high salary movement in India compared to other countries in APAC?
Ans.
India's high salary movement in APAC is fueled by its dominant IT sector, global outsourcing appeal, rapid economic growth, skill
shortages, global talent competition, and varied living costs. Government policies and a dynamic job market contribute to competitive
compensation, making India an attractive destination for skilled professionals.

Q7. Is Employee Turnover stabilized because of less opportunities available in the market?
Ans.
Yes, This is due to a smaller number of new jobs being created, lay-offs, delay in replacement headcounts etc.
Employees want stability as external environment is unpredictable.

© 2024 Korn Ferry 55

Q&A (Contd.)

Q8. Could you provide effective date and the reference survey for the salary increase forecast for 2024?
Ans.
The responses for salary forecasts come from our Benefits survey, our local salary movement pulse survey and our 9th edition global pulse
survey which was run from September through November 2023.

Q9. What is the market sentiment on FDI into India? Is there consensus from most industries? Are certain industries still behind?
Ans.
India's FDI outlook is positive, notably in IT, pharmaceuticals, renewable energy, and e-commerce, benefitting from government
initiatives and global demand. Conversely, sectors like retail, real estate, media, insurance, and legal services historically grapple with
FDI challenges. Policy adjustments strive to improve the investment climate in these sectors, fostering broader economic growth.

Q10. What is the typical % of increase to hire external talents at senior management level (for the same level)?
Ans.
In discussions with various Talent Acquisition teams, it's observed that job switch expectations include a 25-40% salary increase.
Compensation for senior talent often centers on individual expertise, not solely job roles, reflecting a broader trend of recognizing and
rewarding the distinctive skills and contributions of experienced professionals.

© 2024 Korn Ferry 56

Q&A (Contd.)

Q11. Is retention bonus still being used given the increase in LTI utilization?
Ans.
Organizations employ diverse strategies for retaining crucial talent, utilizing mechanisms like Short-Term Incentives (STI), Long-Term
Incentives (LTI), or retention bonuses. Segmentation involves categorizing individuals based on factors like high potential or exceptional
performance. Setting achievement milestones and deploying various retention levers aim to ensure the continued commitment of
valuable talent.

Q12. Why is the aggregate “Fixed Annual Cash“ used and not the usual “Basic salary" or “Base salary" in India?
Ans.
In APAC and other countries, the prevalent aggregate for fixed component of pay is “Base Salary” (which is Basic Salary plus some fixed
payments). In India, Base Salary & Basic Salary are the same. The prevalent aggregate for fixed component of pay is “Fixed Annual
Cash” (which is Base Salary plus Allowances) as Allowances make for a significant portion of the fixed component of Pay. Hence, we use
Fixed Annual Cash as the main aggregate for reporting in India. In India, Fixed Annual Cash is used for benchmarking purposes by most
organizations.

© 2024 Korn Ferry 57

Q&A (Contd.)

Q13. Do you observe high attraction issues where candidates naturally float to offers where the salary is highest or there is trend of
employee considering bigger picture of value proposition?
Ans.
While cash is the king, employees do consider the larger value proposition, things like work culture, employee wellness programs,
benefits policies and practices, etc.

© 2024 Korn Ferry 58

THANK YOU!

© 2024 Korn Ferry 59

APPENDIX

© 2024 Korn Ferry 60

 Why Korn Ferry
We provide actionable, research-backed insight that allows organizations to understand the talent they
have, benchmarked against the talent they need to deliver on the business strategy.

WE KNOW WE TAKE WE HAVE INDUSTRY- WE’RE EXPERT WE HAVE GLOBAL WE'RE WITH
WHAT GOOD A WHOLE LEADING COACHES SCALE AND LOCAL YOU EVERY STEP
LOOKS LIKE PERSON VIEW BENCHMARK DATA KNOWLEDGE OF THE WAY

Our best-in-class The dimensions of We draw on the Our skilled You’ll find our We assess for your
leader success our ‘whole person’ industry’s largest facilitators spot experts in 114 objective, from
profiles are based model are highly assessment opportunities to offices across 53 predicting
on a deep predictive of database to swiftly bring insights to countries. leadership
research-based engagement, identify and participants, move potential to testing
understanding of retention, leadership recognize drivers of at their pace, and immediate
who leaders need effectiveness, and success. provide actionable readiness for a
to be and what performance. feedback. specific role.
they need to do to
deliver superior
performance
through others.

© 2024 Korn Ferry 61

Through us, you gain an integrated talent offering

© 2024 Korn Ferry 62

Expert Applications
Expert Applications can be accessed independently and most of them also through the
Intelligence Cloud

Assess talent to determine

the workforce you need to
Meet your pay competitiveness Deploy engagement surveys and
deliver your future strategy.
and internal pay equity benchmark employee
objectives to ensure engagement, including for our
performance. DE&I solutions.

Tailored learning journeys

developing the skillset & mindset SELL
critical for success for every
Streamline job design, work Improves the quality
Access talent supplyandand
individual in an organization.
measurement, and related talent quantity of CRM data
demand insights through to help
real-
processes. Develop a career sellers make more
time curation informed
of market data
roadmap and visible career account decisions
derived from and profiles
candidate
path from a current role to ALLIANCE improve
and job their sales skills while
postings.
any chosen destination.
Access Korn Ferry leadership doing their job
development program
material, research, and tools to
deliver on your L&D strategy

© 2024 Korn Ferry 63

Korn Ferry Success Profiles
Sitting at the center of the Korn Ferry Intelligence Cloud, our
Success Profile framework is a unique formula of the
characteristics required for success at all role types and levels

Each Success Profile consists of three components:.

• Accountability: Responsibility for results
• Capability: Skills, behaviours, and competencies
that matter for success
• Identity: Traits, values, and motives that shape
people, teams and organizations

Big Data analytics continuously aggregates external

industry, organizational and job role trends, insight and
data to keep Success Profiles relevant.

Success Profiles are used to predict what is needed

to deliver business strategy, inform organizations
where the gaps are, create a career architecture,
and to develop and acquire talent.

© 2024 Korn Ferry 64

 Revolutionize how your work is designed, measured, and delivered
Streamline job design, work
measurement, and related talent
processes. Develop a career
roadmap and visible career
path from a current role to
any chosen destination.

Your modern solution to Job Evaluation

Eliminate writing job descriptions

Job evaluations at the touch of a button

Centralize all information on jobs for

recruitment, training and development,
career management, pay and grading
Assess real time impact of job design
changes on competency and skill profiles –
and on job evaluation results

© 2024 Korn Ferry 65

 Enables organizations to make critical decisions relative to
Meet your pay competitiveness
Total Rewards based on market data and the ability to
and internal pay equity benchmark compensation policies and practices.
objectives to ensure
performance.

Complete view of In-depth insights Always up to date Comprehensive

all your pay and to optimize business and comprehensive reporting and visuals
reward data in costs and structure. information about to share across the
one place. salary components. business.

Interactive reporting Market reward Quick and easy Saves time by

with an option to insights by country, analysis for detailed delivering tools and
create own analysis sector, insights. data in one easy
and market cuts. and job levels. to reach place.

© 2024 Korn Ferry 66

 Our pay data
Key figures

150+ 28,000 26m+ 70%

Countries where organizations in Job holders for of the Fortune 500 use our
we collect and our pay database whom we have pay data, & contribute
provide pay data. worldwide. salary data in 2021. to our database.

70 71% 17+
Every 70 seconds, of the 60 largest years of
a user logs into countries where we are #1 or sustained global
the pay platform. #2 in data density. database growth.

© 2024 Korn Ferry 67

 GLOBAL
MILESTONE 150 OUR 150+ countries
2022 PAY 30,000 companies
DATABASES ARE 25,000,000 employees
AVAILABLE IN
150+ COUNTRIES

NORTH & CENTRAL AMERICA

14 countries
4,400 companies
9,319,000 employees

SOUTH AMERICA
10 countries
2,400 companies
3,555,000 employees

EUROPE
AFRICA 48 countries
39 countries 13,000 companies
1,900 companies 7,670,000 employees
640,000 employees
ASIA
MIDDLE EAST 22 countries
12 countries 4,800 companies
2,600 companies 2,813,000 employees
1,175,000 employees
PACIFIC
9 countries
1,000 companies
574,000 employees

© 2024 Korn Ferry 68

THANK YOU!

© 2024 Korn Ferry 69