The slowdown in India's gross domestic product (GDP) growth to 6.1% for the quarter ended December 2011 will not translate into pink slips being handed over to corporate employees. But the slowdown bug will definitely dent sentiments, feel the human resources (HR) experts.
So, essentially this means lesser pay hikes and a further rise in the variable component (performance-linked pay) of your salaries as companies turn cautious and brace up for any further slowdown in the near future.
"There may not be any retrenchment but hiring activity will slow down as companies turn cautious," said Shruti Guleri, director at Kelly Services, a global HR consultancy.
The worst affected would be the manufacturing and infrastructure sectors while pharmaceuticals and healthcare sectors are expected to buck the trend and continue with salary hikes which would above industry averages.
In fact, only last week Aon Hewitt, another global HR consultancy, had reported a marginal dip in salary hikes for corporate employees.
It had projected salary hikes of around 12% that was marginally down from the previous year's 12.6%.
The silver lining, though, is that hard workers in an organisation would continue to be rewarded, feel experts.
"Organisations will distribute the wage budgets wisely wherein top performers get almost twice as high salary hikes as the average performers," said Sandeep Chaudhary, practice leader at Aon Hewitt.