Domestic firms offer better hike
Employees with locally owned organisations have fetched better increments during 2005 as compared to MNCs.india Updated: Feb 08, 2006 11:29 IST
Employees with locally owned organisations have fetched better increments during 2005 as compared to MNCs here and the trend is likely to continue with asset management, IT and IT enabled companies reaping maximum benefits, a survey has suggested.
"During 2005, locally owned organisations saw an overall salary increase of 14.7 per cent while foreign owned companies witnessed an overall increase of 13.8 per cent. Percentage hike in salaries here are even better as compared to that in China and Phillipines," Hewitt Associates Asia Pacific Consultant Nishchae Suri said releasing Hewitt's Salary Increase Survey on Tuesday.
As home-grown organisations attempt to be more global and capture larger customer bases domestically and around the world, the need to retain good talent becomes critical.
He, however, said people working for MN in general, draw better salaries as compared to employees with locally owned organisations.
"Locally owned organisations are now beginning to align their compensation practices to global standards, strengthening their reward management practices and focusing on pay performance to attract and retain talent and enhance overall productivity, but in terms of absolute package they still have a long way to go," he said.
In 2005, asset management companies awarded the highest average salary increase with 17 per cent hike. Close behind were Information Technology (16.5 per cent) and IT Enabled Services (16.1 per cent), he said.
"Projections for this year stand at 16.6 per cent, 16 per cent and 15.4 per cent for asset management companies, Information Technology and IT Enabled Services respectively," Suri said adding lowest increase in salary was witnessed by non-profit organisations and banking with 9.5 per cent and 9.9 per cent respectively.
About the factors that impact the hike, he said; "employee's contribution in company's growth, skills and competitive pay in the industry contribute in the hike."
It also reflects in the salary hike of various groups. In 2005, over 9,000 employees in 29 industries and over 652 companies surveyed, top management enjoyed 13.9 per cent hike while managers, professional, clerical and manual workforce took home 14.5 per cent, 15.4 per cent, 13.3 per cent and 11.4 per cent swelled salaries.
"The trend in 2006 is likely to remain more or less same. With top management's salary e projected to be 13.5 per cent, managers (14.3 per cent), professionals (15.1 per cent), clerical (12.8 per cent) and manual workforce (10.8 per cent), he said.
On more and more foreign players having their operations here, he said: "It will help salary hike process more transparent and merit oriented."
First Published: Feb 07, 2006 18:41 IST