Do more to get more
In 2009, pay packets at middle manager level will remain unchanged— barring for those who perform exceptionally well.
What’s the most imminent fallout of the slowdown? If you thought it was organisations’ focus on costs, you guessed right. In talent management, this cost consciousness connotes doing more with less. Ergo, at a time when the impact of slowdown is evident, companies have raised the performance bar for all employees.
If you are a middle manager, which is what this installment of the BT-Omam Consultants Salary Survey deals with, it’s time to take up more responsibilities and perform. Returns will now be commensurate with your performance more than ever, say organisations.
Typically, the role of middle management is to help execute business strategies. Says Iti Kumar, AVP-People Development and Employee Services, GlobalLogic, a software product development services provider: “Employees at middle level are required to take more responsibilities in ensuring timeliness, quality and process adherence of their deliverables. They now need to show additional value-adds in their work.”
On the salary front, it signifies salary structures becoming more performance-based, critical functions taking centre stage and support functions witnessing very marginal or no salary increases.
Says E. Balaji, CEO, Ma Foi Consultants: “Companies will be looking at costs very closely. For a long time, the trend in India has been 15 to 18 per cent salary increments. This will change. Some companies will freeze increments and some might go for an ‘inflation-hedged model’, i.e., the increment will cover the inflation for the given fiscal year.”
According to Asim Handa, CEO, Futurestep, a Korn/Ferry company in the field of outsourced recruitment for middle management professionals: “Insurance is very buoyant and is hiring fairly decent numbers. Financial services and retail have been impacted very badly.”
The BT-Omam Consultants Survey of middle manager salaries, which covers managers with an average experience of nine to 12 years, across a range of 14 industries and 101 companies, reveals that for MM I middle level managers (with experience of 12 years on average), the top paymasters were FMCG, banking, telecom and auto in 2008. On the other hand, for MM II (middle manager with experience of nine years on average), ITES topped banking, auto and FMCG sectors in total cost to company. The lowest paying sectors, according to the survey, were textiles, engineering and core sectors (See Industry Percentile).
The scenario in the next few quarters is unlikely to pan out akin to 2008. Auto sector growth has already been hit. Retail is on the wane as the purchasing power of the consumer is decreasing. “In 2009, healthcare and entertainment are two sectors that will see consistent high payouts,” says Yeshasvini Ramaswamy, Director, e2e People Practices.
So, is it all gloom on the increment front? Perhaps not. Even if a company has no option but to go ahead with salary cuts, they will have to make sure that it doesn’t impact the good and talented pool of the company. As we said, it’s time to perform your way to a healthy hike.
Typically, the role of middle management is to help execute business strategies. Says Iti Kumar, AVP-People Development and Employee Services, GlobalLogic, a software product development services provider: “Employees at middle level are required to take more responsibilities in ensuring timeliness, quality and process adherence of their deliverables. They now need to show additional value-adds in their work.”
On the salary front, it signifies salary structures becoming more performance-based, critical functions taking centre stage and support functions witnessing very marginal or no salary increases.
Says E. Balaji, CEO, Ma Foi Consultants: “Companies will be looking at costs very closely. For a long time, the trend in India has been 15 to 18 per cent salary increments. This will change. Some companies will freeze increments and some might go for an ‘inflation-hedged model’, i.e., the increment will cover the inflation for the given fiscal year.”
According to Asim Handa, CEO, Futurestep, a Korn/Ferry company in the field of outsourced recruitment for middle management professionals: “Insurance is very buoyant and is hiring fairly decent numbers. Financial services and retail have been impacted very badly.”
Money and the middle manager |
The BT-Omam Consultants Survey of middle manager salaries, which covers managers with an average experience of nine to 12 years, across a range of 14 industries and 101 companies, reveals that for MM I middle level managers (with experience of 12 years on average), the top paymasters were FMCG, banking, telecom and auto in 2008. On the other hand, for MM II (middle manager with experience of nine years on average), ITES topped banking, auto and FMCG sectors in total cost to company. The lowest paying sectors, according to the survey, were textiles, engineering and core sectors (See Industry Percentile).
The scenario in the next few quarters is unlikely to pan out akin to 2008. Auto sector growth has already been hit. Retail is on the wane as the purchasing power of the consumer is decreasing. “In 2009, healthcare and entertainment are two sectors that will see consistent high payouts,” says Yeshasvini Ramaswamy, Director, e2e People Practices.
So, is it all gloom on the increment front? Perhaps not. Even if a company has no option but to go ahead with salary cuts, they will have to make sure that it doesn’t impact the good and talented pool of the company. As we said, it’s time to perform your way to a healthy hike.
