India’s e-commerce sector is poised for unprecedented salary hikes in 2025, surpassing 10%, according to a recent report by Ernst & Young (EY).
This surge in pay growth highlights the sector’s resilience and rapid expansion, driven by technological advancements, increased consumer spending, and the growing digital economy.
Despite a slight moderation in salary growth across industries, e-commerce continues to defy trends, offering competitive compensation and attracting top talent.
Key Findings from the EY Report
The EY report projects overall salary increments for 2025 at 9.4%, slightly lower than the 9.6% recorded in 2024.
However, the e-commerce sector stands out as an exception, with salary hikes exceeding 10%.
The sector adapts to evolving consumer demands and leverages cutting-edge technologies, driving this growth.
Other industries, such as automotive, pharmaceuticals, manufacturing, and financial services, are also showing steady salary trends, reinforcing India’s strong position in the global market.
Factors Driving Salary Growth in E-commerce
Several factors contribute to the e-commerce sector’s remarkable salary growth:
- Digital Expansion: The rapid adoption of digital platforms has transformed the way businesses operate, creating new opportunities for growth and innovation.
- Consumer Spending: Increased consumer spending on online platforms has fueled the sector’s expansion, necessitating a skilled workforce to meet demand.
- Technological Advancements: Innovations in artificial intelligence, machine learning, and data analytics have revolutionized e-commerce operations, driving the need for specialized talent.
Challenges in Talent Acquisition
While the e-commerce sector continues to thrive, businesses face challenges in attracting and retaining skilled professionals.
The report reveals that 80% of organizations struggle to find qualified employees, particularly in high-demand industries such as IT and energy.
Attrition rates have slightly declined from 18.3% in 2023 to 17.5% in 2024, but the shortage of skilled professionals remains a pressing issue.
Strategies to Address the Skills Gap
To bridge the skills gap, companies are investing in upskilling and reskilling initiatives.
Training programs are becoming essential to ensure long-term employability and meet the demands of a dynamic job market.
Additionally, businesses are implementing various strategies to attract and retain employees, including:
- Rewards Value Proposition (RVP): Organizations are prioritizing comprehensive well-being programs, flexible work arrangements, and competitive compensation structures to boost employee engagement and satisfaction.
- Workforce Investments: Strategic investments in workforce development are expected to drive economic growth and stability in the coming years.
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