“The outlook is positive and organizations are putting hiring plans in place,” said Amer Haleem, country manager, productized services, Hay Group India, in a release. ” “Our detailed analysis highlights that in terms of specific sectors, FMCG and chemical industry are expected to lead the market,” he said.
According to the report, the two leading sectors in the market are FMCG and chemicals, with average proposed salary increments for 2015 at 11.9% and 12.3% respectively. The lowest increments are expected in the industrial goods (automotive) and transportation sectors with average increments pegged at 10% and 10.2% respectively.
The pay-for-performance trend continues to gather steam with payouts highly influenced by both individual and company performance. While industries like FMCG, retail and chemicals will continue to roll out annual short term variable pay at high figures (14.5%, 14% and 14.4% respectively), other industries like industrial goods(others) and transportation too will be pushing the boundaries (11.8% and 9.1% respectively). Also, oil and gas and related sectors like EPC have become cautious and might go softer on earlier projections of high variable pay and increments .
The actual paid out variable pay stood at 12.7% across sectors and levels. Oil and gas sector remained at the top at 15.4% for 2014, followed by FMCG at 14.5% and chemicals at 14.4%. While salary increases would be lower at higher levels, the proportion of variable pay (as a percentage of total CTC) has been ascending across the management ladder, weighing in at 10.7% at the junior level, 13.5% for the middle manager, and 18.1% for senior management.
Source: The Economic Times