Despite signs of slowdown, India Inc experienced an average salary increase of 12.97%, reveals a recent compensation trend survey by Deloitte India. Better hiring sentiment also resulted in higher attrition in the last six to eight months, it said. Across sectors overall annualised attrition average was 18.6%.
Thiruvengadam P, leader, human capital advisory services, Deloitte India, said, ?Even in the current unstable economic scenario, India?s economic growth fundamentals like investment, consumption rate and workforce growth would be instrumental in ensuring steady economic performance. For majority of companies, increments range was seen from 10-19 % across all levels.?
Average annual increases hovered around 13% across all sectors with the highest payout being doled out in the BFSI and the manufacturing sectors. Typically, increases were spread within the 10-19% range for a majority of employees. The lowest salary hike was experienced at the top level management at 11.2%, while the senior management and middle management saw a hike of 12.9% and 13.7%. Even the junior employees noted a decent salary increase nearing 14%.
Different sectors portrayed different trends. The real estate and hospitality sector provided higher annual increases to their senior management, with a few companies providing in excess of 25% increases across senior and top management. Such high increments, in real estate sector, also partially stemmed from the much awaited market correction across the participant companies.
Variable payout also saw a positive movement vis-a-vis last year. Majority of companies provided variable pay within the 11-20 % range. Overall the median variable payout across sectors is around 16% (as % of cost to the company).
Salary hikes were also accompanied by high attrition levels. While average cross-sector attrition percentage was at 18.6%, range of annualised attrition percentage across sector varied from 5% to 25%.
Tier II cities shine
An Assocham report on placement patterns released on Tuesday shows smaller cities are growing faster than bigger counterparts in creating employment opportunities. According to the report, India Inc created 62,181 new jobs in August across 32 sectors ? registering a growth of 52% y-o-y. Though a major portion of this comes from tier I cities including Delhi, Mumbai, Bangalore, the report said contribution in job creation has declined from 85.6% to 73.8% in August as compared with the same month a year ago. Where as, the share of tier II cities has gone up from 8.8% to 13.1%.
