HEADLINES:
March 28 2020
11.9% avg salary hike this year
21 February 2012

For all those fretting over slowdown and jobs, there is some relief. Salary hikes will happen across industries, but they will be subdued compared with 2011. The 2012 salary survey by human resource consulting firm AonHewitt says average salary hikes across sectors would be about 11.9% in the country.

This is marginally lower than the 12.6% average hikes seen last year, and much lower than the 15.2% witnessed during the boom time in 2008. Nevertheless, despite the economic fluctuations globally, the hikes in India this year would be much higher than the 8.2% average seen in 2009 post the Lehman crisis.

Sandeep Chaudharypractice leader, compensation consulting, Aon Hewitt, said despite the economic growth in 2011 being hit by inflation, high interest rates and a slowing global economy, there are encouraging signs.

The survey was carried out among 550 organisations belonging to 19 sectors between November 2011 and January 2012. In the Asia Pacific region, the survey says, India emerges as the country which will witness highest hikes, overtaking China and Philippines at 9.5% and 6.9%, respectively.

Among the sectors projected to witness maximum salary hike of 13.3% is the pharmaceutical industry, closely followed by 13% for the engineering design and services sector.

Moreover, employees at the junior and middle management level will be the highest gainers with 12.3% and 12% hikes respectively.

“This employee category forms the majority of the employee base and constitutes maximum job opportunities across sectors and locations,” saidChaudhary.

Experts say the 10-13% hikes across sectors reflects a sentiment of ‘cautious optimism’, wherein companies are giving hikes just enough to appease their performers but trying to avoid biting more than they can chew, in lieu of the financial turmoil in Western and European markets.

Some experts feel 10-13% is too optimistic an estimate. Kris Lakshmikanth, founder CEO of search firm HeadHunters India, said the IT sector at least should see hikes not exceeding 7-8%. “More established sectors like pharma and FMCG might see hikes in the range of 8-12%.”

According to a human resources official from a key BPO firm, for top performers the hikes could zoom to 15%, while those on the border line could see something as modest as 8%.

As far as top talent goes, says the survey, salary hikes will be higher at 15.1% compared to the overall average, pointing towards the industry’s efforts to reward and retain top performers.

Nihar Ranjan Ghosh, executive director, human resources, RPG retail sector, said 10-12% should be average hikes in the retail sector this time.

“There won’t be any double-digit hikes on the higher scale, except for exceptional performers, as employers are keeping a keen eye on the situation outside,” said Aneesh G Laikar, CEO of recruitment firm Selectema Consulting.

 

 

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