You can look forward to better pay this year, but performance will matter.
After a year that saw layoffs, salary freezes and pay cuts, employees of Corporate India can look at healthy salary hikes again in the new fiscal.
Global HR consulting firm Hewitt Associates, which surveys the mood in companies, projects salaries in the country to increase by 10. 6 per cent in 2010 compared with 6.6 per cent in 2009.
Coming in a high-inflation year, that may not be a blockbuster raise, but employees can take solace in the fact that Indian pay hikes are expected to be the highest in the Asia-Pacific, where China’s average is seen at 6.7 per cent and Australia at 3.4 per cent.
“Sectors that are relying more on the domestic growth and consumption have shown faster recovery while recovery in sectors that have global dependence is expected to gain speed by mid 2010,” said Sandeep Chaudhary, practice leader for India at Hewitt’s performance and rewards consulting unit.
Home market sectors such as energy, telecommunications, pharmaceuticals, engineering, construction and automotives are expected to see 12 to 13 per cent raises while old pay-packet darlings like software and business process outsourcing (BPO) will lag at 9 per cent.
A lot will depend on your performance as human resource manager juggle cost cuts with productivity, says Hewitt, which projects the variable component in pay packets to be in the 11 to 24 per cent range, with the lower end for lower level executives.
In 2009, the comparable range was 10 to 21 per cent.
The study says companies are also expecting more from workers. In 2009, only
9 per cent of employees were classified as “outstanding” while the figure was 11 per cent a year earlier.
Also, around 9 per cent employees did not live up to expectations in 2009, up from7.6 per cent in 2008.