Fewer promotions, pay hikes this year: survey
Companies are likely to be cautious in their appraisals this year , with uncertainty over across-the-board pay hikes.mumbai Updated: Mar 15, 2013 02:06 IST
Companies are likely to be cautious in their appraisals this year , with uncertainty over across-the-board pay hikes.
In a snap poll, 46% human resource (HR) managers said they are unlikely to hike salaries across the board, with 49% saying pay hikes will be 10% or lower. Further, 70% of them anticipated attrition because of appraisals, and 43% said they were not planning to hire post attrition.
The All India Management Association (AIMA) conducted the poll at the end of February among 40 HR managers from public and private sector companies across sectors.
“India Inc is being cautious with appraisals but there is no reason to panic,” said Rekhi Sethi, director general of Aima. “Companies appear to be unsure where policies will leave the economy. However there is no major cause for pessimism.”
Though 49% of the managers said salary increases would be less than 10%, 43% said it could be up to 15%. Also, although half the respondents said there would be no new perks for employees, 68% said they wouldn’t reduce existing ones either.
“Appraisals will be very sector-specific,” said Joseph Devasia, managing partner, Antal International, a mid-to-senior level executive recruitment firm. “Information technology will be less than 10%, FMCG and pharmaceuticals will be more than 10%, and the auto sector may be more meagre.”
The Aima findings are bleaker than those of consulting firm Mercer, whose report earlier in March indicated caution among companies but said appraisals could be about 12%.
“This year, firms will implement the pay-for-performance concept; earlier non-performers also received inflationary increases,” said Muninder Anand, director, information solutions, Mercer Consulting India. “Organisations will pay for performance to support cost pressures.”