Attrition to spiral 25 percent, salaries to improve in 2011
By siliconindia   |   Friday, 24 December 2010, 00:34 IST
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Attrition to spiral 25 percent, salaries to improve in 2011
Ahmedabad: While 2010 saw an average attrition rate of 10 percent in the Indian companies, the forecasts for coming year say that it may reach to 25 percent. As the market conditions continue to improve through next year, companies are going all out to retain talent. This equates to salary growth, which will go as high as up to 30 percent in 2011, reports Avinash Nair of The Economic Times. The Indian companies will witness a nine percent growth in the fiscal year 2011-12 that leads to higher increments in salaries. While employees consider a 10 percent salary hike to be satisfactory, a 30 percent leap is called a boom. The 2009 recession saw employers laying off employees and reduction in salaries, but the salaries were restored in 2010. Hiring officials believe that the raises in the coming year will lead employees to job hop but at the same time will be a tough time for HR managers. Salary hikes are all set to double in the coming year as compared to 2010, which will lead to companies being more liberal with the salaries to stop their staff from shifting job. The head hunting companies believe that the high growth sectors of infrastructure and automobile have to strike a balance between retaining employees and hiking salaries. "Power, infrastructure (ports, airports, surface transportation, logistics) will witness buoyancy in hiring due to investments in these sectors. Some sectors like infrastructure and power will command higher increase (in salaries) due to paucity of talent," said Sudhakar Balakrishnan, Managing Director and CEO, Adecco India.