Energy, Telecommunications, Pharmaceutical, EPC (Engineering, Procurement and Construction) and Automotive are among the sectors projecting highest increases ranging from 11.6 percent to 12.8 percent. Technology and Outsourcing sectors have shown tremendous recovery over 2009, but are playing cautiously with single digit increases in the range of 8.5 percent to 8.9 percent. These findings were revealed in the 14th annual Salary Increase Survey covering 465 companies across 20 primary industries, conducted by global human resource services firm, Hewitt Associates.
Sandeep Chaudhary, Leader of Hewitt's Performance and Rewards Consulting practice in India, commented, "Organizations in India are positive and are looking at measured, realistic growth, with a keen eye on cost consolidation and prudence. The economy has shown faster recovery in sectors that rely on domestic growth and consumption, while recovery in sectors that have global dependence is expected to gain speed by mid 2010. This growth and the fact that 2009 saw a lot of salary freeze and salary cuts, are providing an impetus for healthy increase in compensation for employees."
In keeping with the focus on cost and performance, variable pay as part of total compensation continues to grow with 24.8 percent of Top Executive pay coming through this route and even the lowest rung Officer Cadre getting 11.3 percent of their salary in variable compensation. As per Hewitt's report, salaries will increase across all employee levels with Junior Manager/ Supervisor/ Professional level expected to receive the highest increase at 10.9 percent.
Increased privatization in the power sector, the Government's unrelenting investment and stimulus into infrastructure and increased competition in telecommunications, have earned these sectors the highest salary increases of 12.2 percent - 12.8 percent. These are closely followed by steady performers like pharmaceuticals at 12.1 percent. The automotive sector has sprung back with increased demand and sale over the last two quarters and is strongly positioned at 11.6 percent average salary increase for 2010.
Technology and outsourcing sectors have had a big positive swing from 2009, but still stand among the lowest salary increases at 8.9 percent and 8.5 percent, followed by Shipping and Logistics at 7.6 percent which has continued with the same careful watch from 2009. Also, banking and financial Services have seen a positive recovery with salary increase projection for 2010 at 10.5 percent. This is also the sector that was most adversely impacted by global recession and had minimal bonus coupled with salary freezes.
The Indian retail sector, which was hit by weak consumer sentiment, tight credit situation and unhealthy cost structures, has bounced back, investing in compensation with 11.1 percent projected salary increase for 2010.
