Financial Daily from THE HINDU group of publications
Tuesday, Dec 16, 2003
Financial Daily from THE HINDU group of publications Tuesday, Dec 16, 2003 |
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Info-Tech
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Trends Tech sector salaries above market median, says study Our Bureau
New Delhi , Dec. 15 ALMOST half of information technology and IT-enabled services (ITES) companies in the country have offered compensation that is higher than the market median in 2003 to attract and retain their employees, according to a study. The study by National Association of Software and Service Companies (Nasscom) and human resources consultancy, Hewitt Associates, says that 48 per cent of the 250-odd companies surveyed gave salaries and perks higher than the market median. "In an environment marked by high employee turnover and attrition, companies are introducing innovative methods of attracting and retaining talent," said Mr Nishchae Suri, India Business Consulting Leader at Hewitt. As much as 91 per cent of IT and 97 per cent of ITES companies have a stated philosophy of benchmarking compensation against the market trends, Hewitt said in a statement here. The study said 41 per cent of the IT companies saw a significant reduction (affecting five per cent or more of its employees), while in the case of ITES companies, this was 11.5 per cent. Performance-based salary increases in the IT industry rose by 23 percentage points in 2003 over 2002. Variable pay plans in the industry increased by 18 percentage points. Average salaries increased from 12.2 per cent in 2002 to 15.4 per cent in 2003 in ITES companies and 12.9 per cent to 14.5 per cent in IT companies at the junior management level. The study found that cash-based incentives such as basic salary, cash emoluments and variable pay, had gone up from last year, while benefits such as loans and conveyance allowance had come down. A 10-per cent drop was seen in prevalence of stock option programmes. Companies also cut their budget for recruitment and hiring by seven to 14 percentage points in 2003 over 2002. The study found Bangalore was the most expensive city for IT companies in terms of compensation, while for ITES companies it was Mumbai.
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