Hybrid work models, a focus on mental health, advancements in DEI (diversity, equity, and inclusion), and AI integration in recruitment, performance, and engagement will shape the future of HR. As businesses adapt to these changes, hiring will increase, driven by the growth of GCCs (global capability centres) and KPOs (knowledge process outsourcing) in India, creating a demand for specialised talent.
Interestingly, top-dollar salaries could rise even further in 2025, with sectors like green energy, startups, BFSI, and private equity offering some of the highest CXO pay packages, HR experts told TOI.
Hiring & Salary Trends
In 2024, there was a significant growth in CXO salary trends in India, especially for CEOs, whose compensation packages surged by 35-40% compared to pre-Covid levels. The technology sector led this trend, fuelled by demand for AI and cloud computing expertise. Sectors like auto/mobility, cement, and life sciences also commanded high salaries, highlighting the rising focus on performance-linked remuneration and wealth-creation through equity and ESOPs, said talent company Randstad India’s MD & CEO Viswanath P S.
Looking ahead to 2025, salary trends are expected to maintain an upward trajectory, with emerging technologies such as AI, machine learning, and sustainable innovation poised to drive compensation growth. Technology is likely to retain its leadership in commanding high salaries, driven by advancements in AI, cybersecurity, and cloud infrastructure.
Additionally, green energy, healthcare, and infrastructure development are expected to emerge as top-paying sectors. Globally and in India, variable pay packages have been rising, with companies pushing them as high as 40%, based on performance. Pre-Covid, these packages typically ranged on average 20-25%, but now they account for 30-35% of the overall package. At the senior level, demand for expertise in digitisation, innovation, transformation and strategy will increase, with industrial manufacturing, FMCG, technology and digital, continuing to be in high demand, according to Executive Access India MD Ronesh Puri.
“In 2025, CXO pay packages will witness an increase of 7-8 % in fixed compensation and variable compensation in line with overall value creation measured by profitability or market capi – especially when linked to stock performance. Top executives typically move for attractive stock-based compensation plans, alongside a reasonable increase in fixed compensation,” EMA Partners India MD & regional chair – Asia K Sudarshan said.
AI Shaping Future Of Biz
The year 2024 has been a year of rapid change and innovation across many fields, with AI impacting sectors like healthcare, finance, manufacturing and retail. It is improving decision-making, enhancing customer experiences, and driving innovation. “In fact by early 2024, 34% of HR leaders were exploring potential use cases for generative AI, indicating a growing interest in AI applications within HR departments. The shift toward AI-enabled solutions, like AI-based recruitment, personalized learning journeys, and virtual health assistants has reshaped the workplace, offering new opportunities for innovation and employee engagement. In an era of hyper-growth and constant change, skilling and reskilling is no longer optional,” said SHRM India, A-Pac & MENA CEO Achal Khanna.
AI is fundamentally reshaping the way work gets done, moving beyond incremental productivity gains to redesign workflows, roles, and team structures. Data analytics and AI will also drive more objective, efficient hiring decisions, transforming how organisations attract, retain, and engage talent. “AI-enabled coaching and learning are revolutionising the way we develop talent. By combining AI’s ability to deliver real-time insights and personalized recommendations with the empathy of human coaches & mentors, we can unlock unprecedented growth opportunities,” said WeAce co-founder & CEO Anuranjita Kumar.
Further, data analytics and AI will also drive more objective, efficient hiring decisions, transforming how organisations attract, retain, and engage talent.
Skills Are New Currency
In 2024, it was apparent that skills are the new currency in the workforce. Building a comprehensive skills inventory is essential for identifying and addressing gaps, helping organizations remain competitive in a disruptive world.
“HR is a strategic partner in cultivating an organisation’s most valuable asset – its people. To stay competitive, HR must go beyond traditional roles and focus on how we develop, deploy, and continually enhance skills to foster workforce agility,” Cornerstone India MD Nishchae Suri said.
As we move into 2025, leaders must prioritise innovation, agility, and the development of a skills-based workforce to stay competitive and adapt to future challenges.