Economy

E-commerce, early-stage start-ups to offer highest pay hikes in 2016

Our Bureau New Delhi | Updated on January 27, 2018 Published on February 17, 2016

salary

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Aon Hewitt survey puts average rise at 10%

Your salary will see an average increase of 10.3 per cent this year, a new survey by global human resources consultancy Aon Hewitt has said.

E-commerce and early stage start-ups will offer the highest projected salary increase of 15.6 per cent, followed by Life Sciences at 11.6 per cent and electronic/print media at 11.2 per cent, it said.

On the other hand, financial institutions will offer the lowest average salary hike at 8.8 per cent, followed by metals industry at 9.3 per cent and telecommunications services at 9.7 per cent.

Aon Hewitt released the results of ‘Annual Salary Increase Survey 2015-16’ here on Wednesday. The survey is based on compensation data collected during December 2015-January 2016 from 700 organisations across 19 industries.

Anandorup Ghose, Partner at Aon Hewitt India, said, “Indian companies are taking clear steps to arrest the steady increase in compensation budgets. The lower inflation rates in the economy have helped companies in deciding on the reduced salary increases without creating too much disruption in the lives of employees.”

The survey also pointed out a trend of plateauing of double-digit salary increases in India. The pay increase was 12.6 per cent in 2011, which declined to 10.7 per cent in 2012, followed by 10.2 per cent in 2013, 10.4 per cent in 2014, and 10.4 per cent in 2015 as well.

This is the ‘new normal’ and is a sign of market maturity and a cautious approach to stay competitive in the Asia-Pacific region, Ghose added.

Despite this, India continues to offer the largest pay increases across Asia.

Key talent

Interestingly, in the last five years, the percentage of employees with top performance rating has dropped by close to 30 per cent, implying that organisations are not hesitating to differentiate sharply on the basis of performance and allocating the share of the total increase budget accordingly.

Attrition

At 16.3 per cent, the attrition rate is the lowest that India Inc has observed since 2009 financial crisis. It was in the range of 18 to 20 per cent in the past few years. However, key talent attrition has increased from 5.9 per cent in 2014 to 7.3 per cent in 2015, the survey said.

Best Hikes

Industy

Projected salary increase (2016)

E-Commerce/Early stage

15.6

Life Sciences

11.6

Media - Electronic/Print

11.2

Hi tech/Information Technology

10.8

Consumer products

10.8



Lowest hike

Industry

Projected salary increase (2016)

Cement

9.8

Transportation/logistics/Shipping services

9.7

Telecommunication services

9.7

Metals

9.3

Financial Institutions

8.8

Published on February 17, 2016
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