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Pharma sector records the highest salary hike for FY10
By siliconindia
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Monday, 27 July 2009, 17:05 IST |
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Bangalore: The pharmaceutical sector is witnessing the highest salary hike of 11.1 percent for the fiscal year 2009-10, says a survey on 'Performance & Reward Trends' by Hewitt Associates. Pharmaceutical is followed by manufacturing (10.8 percent), telecom (9.5 percent) and FMCG (9.3 percent). But, the IT and financial services got the least hikes.
Experts said that in the period of economic downturn, these companies were restructuring their salary structures and focusing more on performance and also cutting down on the increments for the current fiscal. "Smart firms have turned inward, consolidating operations, rationalizing requirements and optimizing resources to ride the slowdown," said P Thiruvengadam, Senior Director (Management Consultancy Services), Deloitte.
However, the sectors to witness the least increase in pay packages for the current fiscal are IT (2.8 percent), ITeS (4.4 percent) and financial services space (5.2 percent), the survey stated. Also, the retail sector has been impacted by the downturn and the salary hikes for the current fiscal might not be as expected by the industry, said Thiruvengadam. "In IT and ITeS sectors, overall salary increases have been kept under control and most companies have reported a stable or marginally reduced pay cost structure in relation to total costs. It reflects the response of a growth economy managing a short to medium term slowdown, while keeping an eye on long term growth," Thiruvengadam added.
The Hewitt survey revealed that companies across industries were strongly differentiating rewards on basis of performance, but majority of them were not considering any layoffs or severe salary cuts in the current fiscal. "During these unprecedented times, when firms across the world considered options such as mass layoffs and salary cuts, Indian industries also considered same measures but with maturity," said Sandeep Chaudhary, Hewitt's Performance and Rewards Consulting Practice Leader in India.