Positive increment trends seen across sectors: Survey

A total of 122 companies participated in the survey and the key highlights include sectoral analysis on compensation trends.

Observing the survey trends, Thiruvengadam P, Leader, Human Capital Advisory Services, Deloitte in India opined that, “Even in the current unstable economic scenario, India’s economic growth fundamentals like investment, consumption rate and workforce growth would be instrumental in ensuring a steady economic growth performance. India’s last year economic growth had a positive impact on the overall increments which has been 12.97 per cent. For majority of companies, increments range was seen from 10 to 19 per cent across all levels”.

Survey Highlights:
* The job market has shown positive signs indicating better hiring sentiments across sectors. The overall average salary increases and average variable payout across sectors has been 12.97 per cent and 29.9 per cent respectively.
* Better hiring sentiment has resulted in higher attrition in the last six to eight months. Across sectors the overall annualized attrition average is 18.6 per cent. The top three reasons for attrition cited were career advancement, personal reasons and compensation.
* Key HR challenges which companies highlighted to Deloitte and were seen common across multiple sectors were, Talent identification and acquisition; Career Planning and Talent Engagement

Cross sector analysis:
* Average annual increases hovered around 13 per cent across all sectors with the highest payout being doled out in BFSI and Manufacturing sector. Typically, increases were spread within the 10-19 per cent range for a majority of employees. Level wise increase as show below :
* The real estate and Hospitality provided higher annual increases to their senior management, with a few companies providing in excess of 25 per cent increases across Senior and Top Management. Such high increments, in real estate sector, also partially stemmed from the much awaited market correction across the participant companies.
* Variable payout also saw a positive movement vis-a-vis last year. Majority of companies provided variable pay within the 11-20 per cent range. Overall the median Variable Payout across sectors is around 16 per cent.
* Variable payout was less than 10 per cent at the Junior Management level across participant companies. However this finding is to be viewed in the context of Junior Management compensation levels involving a higher fixed pay component
*At the Senior and Middle management levels, variable pay was found to be in the 11-20 per cent range. And Top Management payouts for the same were in the 11-30 per cent bracket. However, in some sectors (IT, ITES & BFSI), it exceeds the 30 per cent range.
* Voluntary attrition which had subdued since 2008 has seen resurgence in the market with rising job opportunities and openings in the market. While average cross-sector attrition per cent was at 18.6 per cent, range of annualized attrition per cent across sector varied from 5 per cent to 25 per cent. Career advancement emerged as one of the key reasons for attrition across sectors.
* Talent acquisition; Career Planning and Talent Engagement were some of the critical HR challenges emerging across sectors.