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Companies have started rewarding talent irrespective of the macro-economic conditions, says a report by TeamLease Services, a staffing solutions company. It analysed the annual salary primers released over the last five years (2008-2012).
According to the report, the temporary staffing industry continued to clock double-digit growth, of up to 20 per cent year-on-year in terms of salary hikes over the last five years, the 2008-09 recession being the only aberration.
The gap between average temporary and permanent salaries has narrowed and is now hardly 4 per cent. The difference nearly five years ago was more than 8 per cent.
Manufacturing moves
“With more and more traditional sectors recognising temping as a key people staffing strategy, the trajectory is clearly in the direction of growth in hiring and salary increments,” Ms Sangeeta Lala, Senior Vice-President and Co-founder, TeamLease Services, said in a release here on Monday.
Due to healthy growth in hiring as well as salary increments in the agriculture/agrochemicals, automobile, power and energy, and fast moving consumer goods industries, the manufacturing sector trailed the fast growing services sector only by a thin margin in 2011.
From a temporary salary perspective, healthcare and pharmaceuticals had the most impressive growth over the years as salaries grew by 7.96 per cent in 2010, followed by 12.07 per cent in 2011 and 18.87 per cent in 2012, indicating a nearly 45 per cent plus growth every year.
On the contrary, the telecom sector that showed great promise in early 2009-2010 could not live up to the expectations and slumped to single digit growth in 2012. This was expected “considering the tough policy and spectrum wrangle that the sector is going through,” the report notes.
According to the report, certain industry-city pairs are soon going to be impossible to beat because they seem to be outperforming the market. The most effective of these pairs in terms of higher salaries are Chennai – automobile, Delhi – food & hospitality, Mumbai – healthcare and pharmaceutical, and Bangalore – information technology.
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