Published & Updated as on - 2010-05-13
It's
that time of the year again. While traffic on Job Street is picking up, the
decibels on the annual increments are getting louder. After a year of salary
freeze and pay cuts, companies are looking to fatten the wallets of their
employees — albeit more moderately than the heydays of 2006-07. The performers,
however, have nothing to worry about. A dip-stick survey by TOI revealed that
headhunters are projecting up to a 15% hike in salaries in India Inc this
fiscal.
 Besides the hikes, here are a few other trends that
would stand out. MNC's are no longer the preferred paymasters since the growth
story has now taken a desi turn. The wide-eyed obsession of Indian white collar
workers for MNC's is a thing of past and the focus is now on domestic
companies. And the performers are not going to lose out in the year of the turnaround.
Says
Sandeep Chaudhary, leader of Hewitts Performance and Rewards Consulting
practice in India: ‘‘The growth drivers are domestic consumption and
investment. Since the domestic market is insulated from global downturn, it is less
volatile. Organizations across all sectors in this field are looking at better
salary increase projections for 2010, when compared to actuals of
2009.''
According to a TeamLease survey, the services sector
is providing a fillip to salary growth with an average 6% growth, contrasted
with the rather low, sub-5 % salary growth average for the manufacturing
sector. Telecommunication, healthcare and IT in that order have been driving
this growth. Energy, automobile and allied and FMCD in that orders are the only
manufacturing sector industries to drive salary growth at 5% plus
levels.
A survey by Hewitt Associates also projects salary
hikes for 2010 in India at 10.6%, the highest in Asia-Pacific and up 60% from
the actual increase of 6.6% in 2009. It further adds that Indian-owned
companies are expected to outperform MNC's with a projected average increase of
11.4% as against a 10.2% by the latter. E Balaji, CEO, Ma Foi Management
Consultants, also swears by the 10%-plus hike. ‘‘Salaries are likely to be slightly
above the 10% mark.”
Source: ET 12/4/10
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