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Indian private businesses better placed in terms of jobs, salary
By siliconindia
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Thursday, 26 February 2009, 19:59 IST |
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New Delhi: Amidst economic downturn, privately held businesses (PHBs) in India are likely to see an increase in employment opportunities this year. However, there will be modest increase in salary levels, even as the situation across the world looks bleak, says a global consultancy firm Grant Thornton International Business report.
The reports reveals that 44 percent businesses in India expect an increase in employment opportunities in the ensuing 12 months and on an average, 60 percent of businesses in India are likely to increase salaries, mainly in line with inflation.
"Perhaps more worrying for employees is that a significant number of PHBs (60 per cent) in India intend to increase salaries of their staff only in line with inflation. With the current low inflation rates, this will translate into relatively modest increases in salary levels and this does not offer much comfort to employees who are already struggling in the downturn," said Grant Thornton India National Markets Leader Monish Chatrath.
However, Chatrath also warned that the prevailing rate of inflation may not necessarily be indicative of the inflation patterns over the next 12 months over which the salary increases will come into effect. The picture is gloomier across the world, as employees at nearly one fifth of privately held businesses (PHBs) around the world could see no salary increases in the year ahead.
"About 21 percent of businesses plan to offer no pay rise in 2009 while three percent of businesses actually expect to reduce pay. At the same time only 10 percent of businesses expect to increase pay above the rate of inflation," Grant Thornton added.
The gloomiest salary predictions come from Asia Pacific where 29 percent of PHBs would offer no pay rise in 2009 and Taiwan was the extreme case as 72 percent of respondents indicated that they would offer no pay rises in 2009.
By contrast, economies in the Nordic region appear prepared to be the most generous in the year ahead with 82 percent of respondents indicating that they intend to increase salaries either at par with inflation or above, compared with the global average of 64 percent.
Denmark topped this league table with 91 percent while businesses in Finland (89 percent) and Sweden (74 percent) had similar high expectations.
The Grant Thornton International Business Report is an annual survey of the views of senior executives in privately held businesses all over the world. The report surveyed over 7,200 PHBs in 36 economies providing territory, regional and global trend data on the economic and commercial issues.