MUMBAI, Jan. 2 -- India Inc is willing to pay to retain its best talent-but the terms are changing.

As companies head into an appraisal cycle expected to deliver average salary hikes of 8.5-9.5%, employers are refining how they hold on to their top performers. Counter-offers and sweeteners remain part of the retention toolkit, but they are now accompanied by tighter conditions such as longer lock-ins and clawback clauses.

The recalibration comes as the job market cools. Employers across sectors have become more cost conscious, even as they continue to prioritise retention of top performers. Counter-offers are increasingly being structured around lock-ins, clawbacks and deferred payouts, alongside salary hikes.

The changing balance of p...