India Inc Bets On Mid-Level Talent; Expects Moderate Salary Hikes: Report

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% in 2026-27, a report said on Tuesday.

Hiring demand is expected to be concentrated at the mid-level, with 49% 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% of organisations plan to increase hiring significantly by more than 10-15%, while 43% expect only minimal growth within 0-5%.

On the compensation front, organisations are preparing for a competitive salary landscape in 2026-27, as 34% of respondents plan salary increases exceeding 10%, while 46% anticipate moderate increments between 5-10%, the report revealed.

Regulatory and labour reforms are expected to play a crucial role, with 57% of organisations indicating significant restructuring of compensation frameworks to ensure compliance, keeping in mind the restructuring of the Labour Codes.

Increment distribution is expected to favour mid-senior level employees at 48%, followed by junior and senior levels at 26% and 22%, respectively.

Meanwhile, the report found that attrition continues to be a key area of concern for organisations with a majority 55% of respondents anticipating attrition levels between 10-20%, while 15% expect the level to exceed 20%.

It revealed that mid-senior level employees are the most vulnerable segment, with 67% of organisations highlighting them as most susceptible to attrition.

Regionally, the South zone stands out, with 55% of respondents predicting the highest attrition levels, said the report.

Evolving workforce expectations are significantly influencing attrition trends with 50% 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% 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%) viewing them as either moderate or limited contributors (43%) 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% of organisations expecting a balanced 50:50 male-to-female hiring ratio and 31% 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% of responses, followed by the East and South, added the report.