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Salaries set to rise higher : Daily News
Analysis - September 06, 2005 Corporate sector salaries in India are hitting the roof. Literally. According to human resources services firm Hewitt Associates, India is expected to top the list of 11 Asian countries with the largest salary increases in 2006. Sample this: While countries such as Hong Kong and Singapore are expected to raise salaries of their employees in low single digits in 2006 (3.4% and 4% respectively), Indian employees are expected to take home 14% fatter pay cheques next year on an average. The trend of double-digit salary hikes appears to be well in place since 2004. That year, salary increases ranged between 9.1–14.9%. And the projections for 2005 are salary increases in the 14.8 % range. Says Nischae Suri, the rewards consulting leader for Hewitt Associates in Asia: “Business and human resources professionals across Asia continue to look for meaningful ways of managing rapid business growth amidst high attrition and challenges in attracting and retaining talent. Organisations are further strengthening their reward management practices and increasingly focusing on pay for performance to retain talent and enhance overall productivity.” Purvi Sheth, vice-president with HR consultancy Shilputsi, says that while salary hikes in the recent past have been more or less across-the-board, some emerging sectors have seen some of the best salary hikes. “Sectors such as retail and healthcare services, where no previous salary benchmarks exist and where professionals come from well-established sectors, have seen some good introductory salaries,” she said. Sheth said that while offering good packages to employees in emerging sectors is a wise move, companies must understand that this strategy will work only up to a point. “These packages should not be aimed at only retaining people, but to also develop skillsets and provide good career growth opportunities in the long run”. Other sectors that have traditionally seen good, double-digit hikes include financial services, technology and fast-moving consumer goods (FMCG) companies. An HR consultant said that while Indian salary hikes compare well with those of emerging economies such as Thailand, Vietnam and Philippines, they are still not on a par with those seen in Hong Kong and Singapore, for example. Another salary consultant says that while most sectors have done well in terms of salary hikes, some have seen salaries plateau. For example, IT and consumer durables professionals have not had much to cheer about last year, he added. Meanwhile, Hewitt’s Suri says that as organisations attempt to become more global and capture larger customer bases around the world, India and China continue to be strong favourites. “It is expected that these countries will continue to drive and significantly influence economic growth in the region. Given the global attention, salary increases in these markets are expected to be among the highest in the region,” he said. Time yet to uncork the bubbly? |
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