Salary hikes this year unlikely to change from 2015 numbers
This appraisal season is unlikely to add too much to your pockets.business Updated: Feb 18, 2016 10:42 IST
This appraisal season is unlikely to add too much to your pockets.
If surveys are to be believed, the salary hike this year will remain almost same as last year. Indian companies are expected to offer an average increase of 10.3% in 2016, a tad lower than 10.4% in 2015, according to an annual survey by consulting firm Aon Hewitt covering 700 companies.
Sectors, including life sciences, media and consumer products, are set to see a higher increase of 10.8% to 11.6%, while it is likely to be a low 8.8% for financial institutions such as banks.
However, those working with startups and e-commerce firms are likely to be in for a real bounty, with an average hike of 15.6%.
The survey also signals a fall in India’s business outlook. “Ten years ago, a salary hike of 13% to 15% was considered normal. Now, the new normal is around 10% which shows that economic activity is not high,” Anandorup Ghose, partner at Aon Hewitt India, told HT.
“The focus on performance differentiation is far higher with a larger proportion of budgets being allocated to higher performers, which is 1.8 times of average salary hike this year,” Ghose said.
And you can blame low attrition as well. At an attrition rate of 16.3%, it is the lowest that corporate India has observed since the 2009 financial crisis, companies have devised several retention techniques for key talent.