The Hindu Business Line : Job market beginning to perk up

Bangalore, Nov. 8 The year 2010 could well be the year of the job seeker again. Though it would be a far cry from salary jumps of 75-100 per cent witnessed in 2006, switching jobs next year could get one a hike of 15-20 per cent, say hiring experts.

“The market has improved and companies are again witnessing fairly high level of resignations. Therefore, companies are using compensation as a retention tool again,” says Mr Rishi Das, CEO, CareerNet, a Bangalore-based search firm.

The year 2008 and a large part of 2009 were considered ‘zero hike years’ and employees were clutching on to their jobs.

“In the coming months, laterals in the IT, telecom and banking sectors can ask for a 25 per cent jump in salaries when they change jobs,” he says. Also, there is a comeback of the multiple offer trend – candidates coming with two to three job offers on hand – which is a credible barometer of the job market.

Ms Nirupama V.G., Managing Director of hiring firm Ad Astra Consultants, agrees, “While most companies have said that they would hike salaries of existing employees by 8-10 per cent, people changing jobs could ask for 15-20 per cent and get away with it.”

She sees hiring activity in telecom, mining and banking. “South Africa is becoming a jobseeker’s destination with mining and banking sectors getting active there,” she says.

Companies are also considering the spiralling inflation rates while giving out hikes, says Mr E. Balaji, CEO and Director, Ma Foi Management Consultants.

“We have been hearing from our clients that employees are being covered for inflation at least this year.” An 8-10 per cent hike will be the norm during the year, he says.

Ms Gangapriya Chakraverti, India leader of Mercer’s information product solutions business, says, “Despite the fact the past year saw the slowest growth in a long time, industry is estimated to see overall average salary increases at 8 per cent for the year.”

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