Increments 2014: just average

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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

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About Antal India Recruitment Blog

Founded in 1993, Antal International is a global Executive Recruitment firm with 120 offices in more than 30 countries We work with professional and managerial talent worldwide. works with many of the world’s most successful and ambitious employers. In January 2007 Antal International established the first office in India, which led to the opening of 38 offices in 14 cities. In 2013, Antal named Joseph Devasia as its Managing Director for Antal International Network, India – the man who brought Antal to India 9 years ago. Antal India today has 100+ consultants working across offices in India filling more than 3000 assignments at the mid – senior level. Antal India today has offices specialising in various industries like FMCG/CD, Ecommerce, IT, Pharma, Auto, Engineering, Manufacturing, Real Estate, Construction, Retail, Oil & Gas, Aerospace, Defence. Clients: Over the past 22 years, Antal has worked with over several thousand clients making 60,000 placements. Antal extensive network of offices and deep market expertise is what sets Antal apart from its competitors. To know more about us – www.antal.com

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