India Inc is expected to offer average salary increments of 11.3% this fiscal and those working in sectors like pharmaceuticals, health care and life sciences are expected to get a raise of 13.1%, a Deloitte survey says.
According to the survey conducted by Deloitte India, Human Capital Advisory Services (HCAS), part of global consultancy Deloitte, the median salary increments across sectors is projected at 11.3%.
On a year-on-year basis, however, there has been a decline in increment figures. In 2012 corporate India was expected to see overall increment of around 12%.
This year highest increment figures are likely in the pharmaceuticals, health care and life sciences sector at 13.1%, while the financial services sector could offer the most conservative increments at 9.6% (for 2013-2014).
"The overall median has dropped to 11.3%. Indian economy is currently going through a challenging phase as GDP growth has slowed down to nearly a decade low in 2012-13 with domestic as well as external factors playing a part in this downfall," Deloitte in India senior director, human capital advisory Thiruvengadam P said.
Thiruvengadam said: "Macroeconomic issues such as high public expenditure, depleting investment and saving levels, worsening current account balance as well as depreciation of the rupee have added to the present economic pressures." Meanwhile, the overall average attrition rate across industries is 14% largely owing to better career opportunities and better pay.
The highest attrition rates were recorded in the ITeS (17%), advertising and media (16%) and IT (15%) sectors. These sectors are followed closely by pharmaceuticals (14%) and the infrastructure & real estate sectors (14%).
Hiring and retaining skilled talent has been identified as a perennial challenge for organisations across most sectors. developing potential future leaders is an emerging concern in many sectors, the survey added.