Consulting Network » hewitt http://www.consultingnetwork.co.in Fri, 13 Jan 2012 04:39:53 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Salary increments in India Inc to dip in 2009 http://www.consultingnetwork.co.in/salary-increments-in-india-inc-to-dip-in-2009/497/?utm_source=subscriber&utm_medium=rss&utm_campaign=rss http://www.consultingnetwork.co.in/salary-increments-in-india-inc-to-dip-in-2009/497/#comments Tue, 17 Mar 2009 10:12:38 +0000 Knowledge Seeker http://consultingnetwork.co.in/?p=497 Sourced from Economic Times 

Salary increase projections for 2009 in India have dipped to 8.2% from an actual increase of 13.3% in 2008. But it continues to be highest in the Asia Pacific region and among the highest globally. These findings were revealed by the 13annual ‘Salary Increase Survey’ conducted across 480 companies by Hewitt Associates, a global human resources consulting and outsourcing company. The companies considered in this survey comprised foreign-owned , locally owned and joint-venture companies spanning across 20 primary industries and 23 sub-industries .

“When organisations actually release their salary increase budgets, a further dip by 1% or 2% (on the projected 8.2%) may be witnessed across some sectors,” reveals Sandeep Chaudhary, leader of Hewitt’s Performance and Rewards Consulting practice in India. According to the survey, it is also for the first time in six years that India will see single digit salary increases.

Given these projections, should the mood at India Inc be sombre or one of cheer? “While it is true that on one hand the dip in salary increase projection from 13.3% to 8.2% translates to a decrease of almost 38%, it is also a fact that all sectors are not going to be equally affected,” says Chaudhary. According to him, while sectors like retail, information technology, banking and insurance, and entertainment and communications are likely to witness the sharpest decline in terms of salary increments , the B2C (business to consumer) industry segment comprising sectors like telecom, pharmaceuticals, consumer durables and passenger cars that depend on domestic market penetration for growth are going to witness the highest salary increase.

“Moreover, the current GDP growth of India is higher than the GDP growth of most countries in south-east Asia (like Japan, Hong Kong and Singapore) North America and Europe. This, coupled with the fact that inflation is well below 5.5% in India, signifies that an average increase of 8.2% can be considered significantly healthy,” shares Chaudhary.

Chaudhary says that this particular survey, conducted in the backdrop of economic slowdown, is different from the preceding surveys as it has shown projections for India Inc by taking an uncluttered view of the economy. According to him, this has also helped in comprehending how different dynamics influence different sectors. “For instance, it has been established through the survey that sectors that had dependent economic ties with the US and sectors which are directly dependent on other industries for advertising revenue are among the worst hit in terms of growth and salary increase projections,” explains Chaudhary.


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