Desi cos offer better salary hikes than MNCs
By agencies   |   Wednesday, 08 February 2006, 20:30 IST
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NEW DELHI: According to a survey, domestic firms gave out higher salary increments to their employees in comparison to the average hikes received by employees of multinational companies (MNCs) in 2005. The survey conducted on “Annual Salary Increase Survey,” by Hewitt Associates' shows that domestic companies saw an overall salary increase of 14.7 percent, while MNCs saw an overall increase of 13.8 percent. Employees in the country received an average salary increase of 11.4 percent to 15.4 percent last year on a par with last year's increase, the survey adds. Also, employees in the professional, supervisor and technical levels benefited the most in terms of average increments during the year across all the surveyed employee groups, as opposed to the trend during the late 1990s when top management personnel enjoyed the highest salary increases. Hewitt Associates Asia Pacific Business Consulting Leader, Nishchae Suri said, “As homegrown companies attempt to be more global and capture larger customer bases domestically and around the world, the need for good talent becomes critical. Now these firms are aligning their compensation practices to global standards, strengthen their reward management practices and focus on pay for performance to attract and retain talent, and enhance overall productivity.” The average salary increase in the senior management was 15.9 percent in the case of domestic companies as compared to a 13 percent average increment given by MNCs during the year. At the middle management level, the average salary increase was 15.4 percent in case of locally owned firms as against a 14.1 percent increment given by MNCs during the year. Suri said, “Due to a large region-wide economic upswing and the global attention attracted by India, employers reported a more positive outlook on salary increases across industries in 2005.”

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