Skip to main content

India Inc's avg salary hike to be 9.4% this yr: Survey

By
India Inc's avg salary hike to be 9.4% this yr: Survey
Employees in India are likely to get an average salary hike of just 9.4 per cent this year, same as last year, while key talent are expected to get appraisals of as much as 15.4 per cent as companies increase focus on performanceHR consultancy Aon Hewitt's annual Salary Increase Survey, that analysed data across more than 1,000 companies from over 20 industries, said the average salary for India Inc stands at 9.4 per cent this year. A on believes average pay increases in India will remain between 9.4-9.6 per cent.
As per the survey, companies in India gave an average pay increase of 9.3 per cent during 2017, marking a departure from the double digit increments given by organisations since the inception of this study.Even as salary hike remained at the same level on a year-on-year basis, India continues to lead the Asia-Pacific region.China is expected to dole out a salary raise of 6.7 per cent, Philippines 5.8 per cent, Malaysia 5.1 per cent, Singapore 4 per cent, Australia 3.2 per cent and Japan 2.5 per cent.
The survey noted that the focus on performance is getting sharper year-on-year. A top performer is getting an average salary hike of 15.4 per cent, approximately 1.9 times the pay increase for an average performer."With critical skills shortage highlighted as a key concern, companies are becoming more cautious while recognising and remunerating their key talent," Anandorup Ghose, Partner at Aon India Consulting told reporters here.
Ghose further said that "with increasing maturity, HR budgets are being realigned towards top performers as opposed to the broader population".Sectors such as professional services, consumer internet companies, life sciences, automotive and consumer products continue to project a double-digit salary increase for 2018.
Despite an improvement in macro-economic forecasts - salary increases remain at the same level as was projected in the last fiscal and this is because salary increases are becoming more "nuanced"."We are increasingly seeing a multitude of factors impacting salary increases such as size of the company, business dynamics within the sub industry, nature of talent requirements and quite obviously, performance," Ghose said
Meanwhile, attrition rate in India is seeing a continuous downward trend as the overall attrition has come down from an average of 20 per cent in the previous decade to 15.9 per cent in 2017

The Business Standard, New Delhi, 28th February 2018

Comments

Post a Comment

Popular posts from this blog

RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

By
  India's digital lending infrastructure has made the loan sanctioning system online. Yet, loan recovery still needs a “feet on the street” approach, Swaminathan J, deputy governor of the Reserve Bank of India, said at a media event on Tuesday, September 2, according to news agency ANI.According to the ANI report, the deputy governor flagged that fintech operators in the digital lending segment are giving out loans to customers with poor credit profiles and later using aggressive recovery tactics.“While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending small-value loans to customers often with poor credit profiles,” Swaminathan J said.   Fintech platforms' business models The central bank deputy governor highlighted that many fintech platforms' business models involve providing sm
Post a Comment
Read more

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the rep
Post a Comment
Read more

India can't rely on wealthy to drive growth: Ex-RBI Dy Guv Viral Acharya

By
  India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said on Monday.Acharya, who is the C V Starr Professor of Economics in the Department of Finance at New York University’s Stern School of Business (NYU-Stern), said after the Covid-19 pandemic, rural consumption and investments have weakened.We can’t be pumping our growth through the rich and expect that the economy as a whole will do better,” he said while speaking at an event organised by Elara Capital here.f there has to be a trickle-down, it should have actually happened by now,” Acharya said, adding that when the rich keep getting wealthier and wealthier, they have a savings problem.   “The bank account keeps getting bigger, hence they look for financial assets to invest in. India is closed, so our money can't go outside India that easily. So, it has to chase the limited financial assets in the country and
Post a Comment
Read more