Nudged by high attrition rates, competition, and a serious shortage of talent, India Inc is set to hand out raises that should more than compensate for the record rise in prices over the past several months.
Several consultants and industry experts told Hindustan Times that “reasonably good” raises are on the way. According to a senior manager at Hewitt Consultants, India: “Hireable talent is low. In the IT industry for example, retainable employees are likely to get raises of between 14 and 15 per cent. So, inflation of about 4 to 6 per cent is already factored in.”
SpiceJet public relations officer Ajay Jasra said, “New airlines are coming up, we want to retain good staff, so they’ll get a good raise.”
CEO of indimoto.com, India’s leading auto classifieds site, Udit Bhandari, said: “Increments will factor in inflation.” Rajesh Verma, director, CRI Events Pvt Ltd, one of India’s major event-management firms, agreed: “Raises are anyway bigger than the impact of inflation.”
Said chartered accountant Neeru Wadhwa: “My maid and driver have already asked for raises. I will give them a flat 10 per cent hike.”