New Delhi: Employees in India can expect pay hike of 10.3 per cent on an average across job roles in 2017, marginally higher than last year, according to new research by the Hay Group division of Korn Ferry.
"This year's compensation study predicts the pay raise to be more or less the same or slightly higher than last year. The general market can expect the median salary increase and salary hike figure to stay between 10-11 per cent," said Amer Haleem, Country Manager, Productized Services, Hay Group.
One of the major trend that is gaining significance year after year is the overarching focus on performance, with the pay outs widely influenced by both individual and company performance.
While, auto, industrial goods and hi technology companies rolled out the highest annual short term variable pay (16.3 per cent, 15.7 per cent and 14.5 per cent respectively), other industries like FMCG, chemicals and retail segments doled out an average variable payout in the range of 11.2 to 12 per cent.
"Continuing with the trend from the past few years, the companies are increasingly detaching themselves from the 'one size fits all' approach and are going all out to differentiate in how they reward top and average performers," Haleem added.
In terms of overall pay raises, high technology is expected to see pay rise of 12.1 per cent this year, while increments for the oil & gas sector are expected to rise to 10.7 per cent.
Amongst other sectors, the biggest decline is expected in the services sector from 10.8 per cent in 2016 to 9.7 per cent this year. The annual report breaks down jobs into four levels clerical & operational, supervisory & junior professionals, middle management & seasoned professionals, and senior management & executives.
While the expected increase at middle and clerical & operations levels stood at 10.2 per cent and 10.4 per cent, respectively, the percentages for senior and supervisory levels are expected to be 10.3 per cent. The study pegged the overall employee turnover in 2016 at 12 per cent, with the largest attrition reported in front line sales.
The main reasons for attrition continue to be higher pay and better career prospects along with employees' personal circumstances in certain cases. In order to check attrition and keep it under control, many organisations cited having reward & recognition policies in place, investing in learning & development programmes, and offering well defined career progression plans to employees....