Indian Employees to get 10.3 pct Average Salary Hike
BENGALURU: It’s that part of the year again when your hard work really pays off. The year end (Financial year, of course!) will be here in a month’s time. So, all the work that you have put in over the last year, all the projects that were completed before time, all the leadership that you showed, all the back-biting that you did and didn’t, all these things will make your earnings better. In an announcement made by Aon Hewitt (the management consulting unit of Aon Plc) on Wednesday, the firm forecasted that there will be a 10.3% salary hike for the Indian employees across different sectors this year, reports Prachi Verma of ET Bureau. The forecast made by Aon Hewitt sees the e-commerce and Internet organizations topping the list as they are expected to give a 15.6% hike to their employees. There is a sudden fall in the hiking percentage when we go one step down in the list being produced by this study. At the second spot is the life sciences sector which has been foretold giving an 11.6% hike to the employees. The next spot has been given to the media sector with a projected salary hike of 11.2%.
This is the largest study of its kind in India. 700 different organizations were analyzed by Aon Hewitt before producing this report. The study has forecasted that the sectors such as telecom services, metals and financial institutions are set to offer the lowest projected salary hikes of 9.8%, 9.3% and 8.8% respectively.
There has been a steady increase in the compensation budget of an Indian organization in the last few years and the study suggests that Indian companies are taking very clear steps to arrest this steady increase. The projected salary hike is a little less than last year’s. The lower inflation rates in the economy has been quoted as a reason for the organizations in deciding on the reduction in salary hike without creating too much of a disruption in the lives of employees. A cautious stance has been taken by the organizations across industries by slightly reducing the salary hike. The overall budgets of many organizations have also taken a marginal dip as compared to actual spends in the year 2015.
The study also predicts Start Ups to stand out and continue to have an aggressive stand on pay, despite being in the pre-profit stage for over three years.
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