The Hindu Business Line : Average salary increased by 15% in 2007: Survey

Bangalore, Feb. 20 Employees in the country received an average salary increase of 15.1 per cent in 2007, up from 14.4 per cent in 2006, according to the 12th annual Salary Increase Survey by global HR firm Hewitt Associates. The report also predicts an increase of 15.2 per cent in 2008 and a stabilisation of increases by 2012 in the range of nine to 10 per cent. Factors that would influence stabilisation reduced talent-skill gap, change in talent model, training and re-engineering talent.

The highest salary increases during the year were enjoyed by junior managers and supervisors (15.9 per cent) followed by middle managers (15.7 per cent). Top management received a 13.9 per cent increase in their pay cheques. Employees in the real estate and energy sectors received the highest increments this year (25.2 per cent and 19 per cent respectively), followed by those employed by the retail sector (17.6 per cent). Salary increases in the technology and outsourcing sectors have stabilised between 13 and 14 per cent since 2004, according to Mr Sandeep Chaudhary, Leader, Hewitt’s Rewards Consulting Practice in India.

Variable pay

Companies are now using variable pay as a strategic lever to attract and retain talent with 95 per cent of the respondents in the study saying that they have variable pay plans in 2007.

Attrition in the country has reached an all-time high with the insurance industry reporting the highest employee turnover rates at 35.2 per cent. ITeS and hospitality too are plagued by high attrition rates (28.9 per cent and 27.1 per cent).

Hewitt surveyed about 600 companies across 19 primary and 22 sub-industries to measure actual and projected salary increases and compensation practices for six specific job categories.

More Stories on : Human Resources

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Reliance Comm plans rural phone scheme in Karnataka

IBS product for Jet Air

TCS offshoring deal with Chrysler

Suswagat.com launched

Average salary increased by 15% in 2007: Survey

Satyam’s SEED to groom engineers

Tech sector wage inflation poised to sober down

HCL Tech buys US-based CapitalStream for $40 m

Microsoft, NIIT in pact for developing IT talent pool

LatticeBridge develops tool to track employees in transit

‘Open Source Madurai’ from Feb 29

CII seeks e-publishing courses

FLAG, Yipes come under Reliance Globalcom

Infosys launches Finacle version 10