Increments 2014: just average
Employees have received a salary hike of 10% to 15% this year, the highest being 18% to 22% for consumer-facing industries.
Anuj Srivastva is not a happy man. A manager at a multinational BPO firm, he was looking forward to this year’s appraisal as he had been told that the hikes would be better this year. “I was expecting a raise of around 15% at least, given my performance, but got only about 8%. In fact, the company itself has done well this year and we were all hoping we’d be given a decent hike,” says Srivastva.
Mrinalini Pai, a software developer at an IT company, received a hike of around 12% and a promotion. “I joined the company I’m currently working in, in 2010,” she says, “And this year’s appraisal has not really been much of a deviation from last year’s figures. Of course, I am glad that I got the promotion and the hike, for me, was on expected lines. Yet, the expectations from employees were quite high this time with the elections and talks of an economic revival. The results, though, have been less than satisfactory for most employees.”
Joseph Devasia, managing director, Antal International Network, India, says that average hikes this year have been in the range of 10% to 15% and the highest hikes of 18% to 22% have been doled out by consumer-facing industries. “It is just marginally lower than the previous year, as there has been uncertainty in the economy during the appraisal season. Though there is some hope post elections, it would not have translated to salary hikes as appraisals were pretty much completed by then,” reasons Devasia.
The pharma and healthcare sectors gave the highest salary hikes this year at around 14% to 16%, followed by BFSI (banking and financial services industry) at 10% to 13%, says Moorthy K Uppaluri, CEO, Randstad India. “However, the hikes for IT and ITES were lower than expected at 9% to 12%,” he adds.
Elaborating on the strategy followed by most companies this year, Uppaluri says, “While giving out increments this year, most companies focused on their middle and junior level employees, as this segment is expected to be impacted by attrition due to the economic recovery and the sentiment of optimism surrounding it. Companies that have given lower than expected hikes have proposed non-monetary benefits for their employees in order to retain key talent. The compensation philosophy for senior roles is driven by performance objectives, hence the hikes in this segment have broadly been lower except for critical roles. The increments have been higher in the variable- performance components than the base salaries.”
Experts are of the opinion that one will have to wait for the next appraisal to see the positive sentiments surrounding elections and the economy translate into a significant increment.
Link to the story in Shine.com http://info.shine.com/article/increments-2014-just-average/3254.html