Thursday, April 30, 2009

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India Inc may hike salaries by 6-8% in 2009: Mercer

Source: TheEconomicTimes
At a time when the global job scenario is gloomy, India Inc is expected to increase salaries up to eight per cent this year with infrastructure and FMCG sectors likely to see the maximum hikes, global HR consultancy Mercer says.

"Overall Indian companies are likely to increase salaries between 6 and 8 per cent in 2009," Mercer India business leader (information product solutions) Gangapriya Chakraverti told reporters.

Despite the economic slowdown troubling the corporate world, the country's fast moving consumer goods (FMCG) and Infrastructure sectors are likely to see the highest increases in salaries this year.

"Sectors like FMCG and infrastructure are expected to get the highest hikes of 8-12 per cent this year," Chakraverti added.

Meanwhile, financial services and Information Technology sectors, which have been severely impacted by the global slowdown, are unlikely to see any considerable increases in wages this year.

"IT and financial services may be the worst hit ... IT sector may see an average salary increase of four per cent this year," Chakraverti added.

With the beginning of the new financial year, companies are now drawing up plans related to the salary increments. However, in the wake of the severe economic conditions firms are looking for ways to answer the HR challenges in a balanced manner.

Mercer, which provides HR consultancy services to companies, has launched a new product for its clients to provide quarterly information such as changes in HR budget, staff turnover, headcount growth and planning, changes to benefits and incentive plans.

The services also include first-hand market information on how companies plan to address a specific hot issue as well.

Interestingly, focus on performance has been enhanced substantially following cost-cutting initiatives introduced by companies amid the slowdown.

The trend is shifting towards a greater difference between salary increases for the high performing individuals and the average performers.


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