India Inc may see 12% salary hike next year

Amid economic sluggishness, employees in the country have a reasonto smile as a survey has predicted up to 12 per cent pay hikes in the New Year.

"India has witnessed actual average salary increase of11 per cent in 2011 and is optimistic to see a double digit growth yet anotheryear in 2012 at an average of 12 per cent across levels," globalmanagement consultancy Hay Group said.

The increments have been promising not only at junior ormiddle level but also at senior management level where 11-12 per cent salaryrise is expected.

Hay Group noted that Indian companies have shown betterstability and stronger values during recession as compared to foreign entities.

Functions such as engineering, sales and marketing areseeing pick up in recruitment activities, Hay said in a statement.

The forecast for next year is based on survey of over 300organisations in the country that analysed salary data for more than 3,20,000employees.

"... research this year finds that employees in Indiareceived an average 11 per cent pay rise over the last 12 months though thisvaries according to location and sector or seniority within anorganisation," Hay Group India's Managing Consultant and Rewards PracticeLeader Sridhar Ganesan said.

He pointed out that companies have been aggressive invariable pay not only for senior management but also at junior levels.

"The target bonus percentage ranges between 8-44 percent of base salary at junior management, 11-63 per cent of base salary atmiddle management and 15-75 per cent of base salary at senior management.Organisations have designed variable pay to induce performance drivenculture," Ganesan said.

As per the survey, 79 per cent of the participatingorganisations paid some form of bonus in the last 12 months.

 

Graduate salaries are also picking up with monthly salariestouching Rs 40,000 in job families like engineering, sales, marketing and evenin support functions like finance and human resources, the statement said.

 

"In a short span of last 5 years, Indian employmentmarket has witnessed a range of behaviours with employers on a hiring spree andalso in right sizing mode. The market is now stabilising and maturing to nextlevel of employer and employee relationships," Ganesan said.