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Are Salary hikes now based on upskilling? Is there a new trend in town to shape career growth and training? Let us find out.
In this era of rapid change and transformation, it is highly advantageous to enhance your skillset. According to the India Career Upskilling Report, individuals who dedicated time to upskilling over the past five years experienced significantly better results. They received appraisals that were two-and-a-half times higher and experienced increased job security and satisfaction. They earned more frequent promotions than those who did not invest in upskilling.
This transformation in the way organizations evaluate salary hikes reflects a broader trend that has been shaping career growth and training across industries. There is a growing trend in many organizations where employee hikes are driven by upskilling, reskilling, and training.
Let us look at these trends closely.
The Value of Upskilling
“We are proud to witness numerous success stories of students who have undergone our upskilling programs in Finance, Analytics, Technology, and Marketing Domains,” says Sonya Hooja, Founder and COO of Imarticus Learning. She further added, “These programs have not only facilitated career transitions from operational roles to strategic and skill-based positions but have also opened doors to new and exciting opportunities. Upskilling can be a game-changer for individuals, as it often leads to remarkable salary hikes, with an average increase ranging from 50 – 60% post upskilling. It highlights the immense value of acquiring relevant skills in today’s data-driven world. Moreover, professionals are increasingly seeking expertise in data science and analytics, recognizing the indispensability of data in driving business excellence across various domains. Early-career professionals are eager to upskill for specialized roles, propelling their growth trajectory, while mid-level professionals aspire to pursue executive degrees to facilitate their transition into leadership positions.”
Aligning Hikes with Learning Efforts
Organizations now recognize the importance of upskilling and reskilling employees to keep pace with technological advancements and changing job requirements. The traditional approach of across-the-board salary increases is replaced by a more dynamic method of evaluating salary hikes. This approach incentivizes employees to engage in learning and development activities actively, fostering a culture of continuous improvement. Furthermore, organizations now place a premium on niche skills that are in high demand or have strategic relevance. This makes business sense, as companies assess how the compensation of each employee aligns with their value to the organization. Employees who acquire expertise in areas such as artificial intelligence, cybersecurity, and emerging technologies may receive premium salary increases due to the scarcity and strategic importance of these skills.
Investing in Employee Upskilling
“Apart from ‘hike for skill’, one of the other ways to accomplish this ‘skill’ demand-supply equilibrium is aggressive investment in targeted employee up-skilling. Companies like Amazon, AT&T, PwC, and IBM are heavily investing in employee upskilling initiatives. These initiatives provide financial support, tuition assistance, dedicated work hours for learning activities, and more to help existing employees develop skills that are in high demand based on the nature of the business. This not only benefits employees but also ensures that companies have a workforce equipped to meet evolving industry needs. By linking salary hikes and career growth to learning efforts, companies prioritize employee development while ensuring alignment with progressing industry demands,” said Dr Suresh Ramanathan, Dean & Principal, Great Lakes Institute of Management Chennai.
The Evolution of Work
The nature of work is evolving rapidly due to technological advancements. AI models are now capable of performing complex tasks traditionally handled by skilled professionals, such as coding. The rapid development of technologies that use AI, robotics, and the Internet of Things (IoT) is causing a significant shift in workplaces. To remain competitive in this rapidly changing job market, workers must continually upgrade their skills. For example, knowing higher-level coding to integrate different technologies for customized usage will be essential. AI models, while evolving rapidly, cannot predict major shifts or deviations from established trends. Those who can foresee these changes will gain prominence, a skill that comes with experience and practice.
The Changing Face of Recruitment and Promotion
“Given these changes, corporate recruitment and promotion processes and policies must evolve. Skilled workers who display motivation for continuous learning, resourcefulness, and integrative thinking will receive premium compensation, and rightly so,” said Vidya Mahambare, Professor of Economics and Director of Research at Great Lakes Institute of Management Chennai.
Tech-Centric Management Skills
In addition to the tech-focused transformations happening in the workforce, management professionals are encouraged to acquire tech-centric skill sets. Professor Amit Bhadra, Associate Dean of Career Services at GITAM (Deemed to be University), points out that businesses are increasingly looking for managers who can conceptualize and deploy technology in business operations. This trend emphasizes the importance of keeping up with technological advancements to stay competitive in the job market and advance one’s career.
Final Thoughts
The trend of tying salary hikes and career growth to upskilling, reskilling, and training initiatives is gaining momentum in various organizations. It reflects the evolving nature of work, the need for employees to upgrade their skills continually, and how companies are proactively incorporating upskilling and reskilling into their talent development strategies. By doing so, companies prioritize employee development while ensuring alignment with progressing industry demands. In this rapidly changing world, the key to career success lies in embracing continuous learning and adaptation to remain at the forefront of industry evolution.
