Employers in seven major sectors will focus on employee training needs and
retaining top performers this year, according to the 2013 Total Remuneration Survey by Mercer, a human resources consultancy. Salary increases across industries are expected to remain at 12 per cent, the same as
actual increments in 2011 and 2012.
Most companies today have elaborate feedback and reviews through the year to keep employees in the loop on the appraisal and compensation process. "There is a strong emphasis on training need identification today. Individual performance, especially at the top management level, has picked up as a percentage of the whole salary," says Muninder Anand, Director of Mercer's Information Solutions business.
According to the report, organisational heads and senior-level executives can expect a fixed to variable pay ratio of 80:20 while lower level sales and non-sales staff can expect a 90:10 payout ratio.
Sectors such as pharmaceuticals, technology (information technology, telecom, software products and services) manufacturing and engineering have the highest variable bonus figures among the seven sectors surveyed.
The survey also highlights how sectors such as pharmaceuticals, chemicals and manufacturing will increase their workforce strength in the next 12 months, starting May 2012. "Top performing sectors such as pharma are not shying away from revealing retrenchment percentages and will see strong recruitment in the coming months. Non-performers are being let go," says Anand. In the first half of 2012, the pharmaceuticals sector had an average attrition rate of 4.4 per cent, the highest among the sectors surveyed.
The report also shows how companies across these seven sectors are giving more importance to employee benefits such as life insurance to retain them. Flexible benefits such as work-from-home options and medical reimbursements have come down in importance.
"Buying life insurance is expensive as an individual cost to employee. Companies looking to retain employees are increasing such benefit options as part of CTC (cost to company)," says Anand. Employers find it hardest to recruit and retain talent in engineering, sales and research and development positions at the junior to mid-management level. According to Mercer's research, companies in India are planning to increase headcount in sales by 51 per cent and engineering by 56 per cent.
The survey represents inputs of 734 organisations across seven sectors: pharma and medical equipment, auto and automobiles, chemicals, consumer goods, manufacturing, hi-tech (telecom and IT) and oil and gas.
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