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Lower salary hikes likely next year; hiring shrinks in major sectors

Employees are expected to see an average 10% increase in salary in 2017 -- lower than the 10.3% rise doled out this year. However, after taking into account the inflation effect, the hike would be a meagre 4.8%, according to the latest report by global consultancy Korn Ferry Hay Group.

business Updated: Dec 09, 2016 12:51 IST
Himani Chandna
Employees are expected to see an average 10% increase in salary in 2017 -- lower than the 10.3% rise doled out this year. However, after taking into account the inflation effect, the hike would be a meagre 4.8%, according to the latest report by global consultancy Korn Ferry Hay Group.
Employees are expected to see an average 10% increase in salary in 2017 -- lower than the 10.3% rise doled out this year. However, after taking into account the inflation effect, the hike would be a meagre 4.8%, according to the latest report by global consultancy Korn Ferry Hay Group.

It’s not only demonetisation that is likely to pinch you hard. On top of that, get ready for lower salary hikes next year.

Employees are expected to see an average 10% increase in salary in 2017 -- lower than the 10.3% rise doled out this year. However, after taking into account the inflation effect, the hike would be a meagre 4.8%, according to the latest report by global consultancy Korn Ferry Hay Group.

Salary hikes in India, although still higher than many other countries across the globe, have stabilised, and we expect them to be in the range of 9.5% to 10.5% in the next couple of years,” said Amer Haleem, country manager, Korn Ferry Hay Group.

According to another survey by job portal Monster.com, the two key mass recruiting industries – manufacturing and information technology (IT) -- continue showing bearish growth owing to depressed private investment climate and global economic and political occurrences. The manufacturing sector has shown the steepest decline, down 18%, followed by IT (1%) since October. “The IT industry is undergoing a phase of disruption and has witnessed diminishing growth figures for the past couple of months,” said Sanjay Modi, MD, Monster.com, APAC and West Asia.

The Monster Employment Index stood at 240 in November, a 9% rise over the corresponding period last year. On a month-on-month basis, the index, however, witnessed a decline of 3.61%.

The story is same across the globe. While North America is predicted to see lower salary increases than other regions at 2.8%, workers in Eastern Europe are likely to see an average salary increase of just 5.1%.