India inc to see 10.5% salary hike in '16

1. India Inc to See 10.5%
Salary Hike in '16
Expected base salary increase in 2016 ranges from
10% to 11%, with relatively higher increases for life
sciences, IT and chemical industries

2. Contd…
Companies in India expect to increase base salaries by 10.5% next year and
almost half of them plan to hire more workers, according to a survey by
consulting firm Mercer.The expected base salary increase across industries
and career levels in 2016 ranges from 10% to 11%, with relatively higher
increases for life sciences, IT and chemical industries, according to Mercer's
India All Industries Total Remuneration Survey of 691 organisations. The
average actual salary increase in 2015 was 10%.
“Life sciences has really caught up as an industry sector, not just in India but
also in other parts of the world,“ Mercer's global CEO Julio Portalatin said,
sharing the survey's findings exclusively with ET. “We do believe that the
phenomenon is likely to continue with life sciences and IT continuing to lead
the pack, with life sci ences slightly ahead of IT.“

3. Contd…
Portalatin shared the findings of the survey exclusively with ET.
“Life sciences is a highly competitive industry and you are going to see the
pressure on salaries and that's why the life sciences group is leading the
variable increase for salaries and is expected to be the same in 2016. It is
reflective of how important it is to adjust our solution to that industry to
make it as competitive as possible,“ Portalatin said.
Over the years, salary increase differentiation across industries has
narrowed, with greater differentiation built for higher performance and
higher budgets for higher potential talent, the survey showed.
On recruitment, the survey said about 48% of Indian companies expect to
increase their headcount in 2016. Portalatin said one in two companies is
planning to increase headcount, with hi-tech, shared services and life
sciences sectors leading the pack.

4. Contd…
India is gaining prominence in terms of intellectual capital with several global
IT firms setting up innovation centers in the country.The IT industry has also
created significant demand in the education sector, especially for
engineering and computer science.
There has been an increase in var iable bonus pay across industries from
actual payout of 14.7% in 2014 to a projection of 15.4% in 2015. “It seems
like more is being paid from the variable component in total compensation,
indicating that business performance in 2015 is better than in the previous
financial year,“ Portalatin said. talatin said.
According to the survey, variable bonus in 2014 was highest in the hitech
sector at 22.4% of annual guaranteed cash. This was followed by the
consumer sector at 15.5%.

5. Contd…
The overall actual attrition witnessed in 2014 was 12.6%, with the highest rate
reported by the shared services sector at 17.8%, followed by the consumer sector
at 17.6%. The survey indicates an uptrend from last year, where overall attrition
went up 2.3% -from 10.3% to 12.6%. This indicates that organisations are facing
greater talent crunch in the form of voluntary separation.
From a retention standpoint, sales professionals across levels continue to challenge
organisations. While hiring, organisations find it hard to attract research and
development (R&D) professionals as well as engineering professionals, across
industries.
The research ecosystem in India presents a significant opportunity for multinational
corporations due to its intellectual capital available in the country . Legions of
Indian engineers working across the globe highlight the highly trained manpower
available at competitive costs. Consequently , several MNCs have shifted, or are
shifting, their R&D base to India. This has resulted in stiff competition for talent.

6. For details and bookings contact:-
Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants & Other-Mother
marketingandcommunicationconsultants.com)
Email :-saxbeeconsultants@gmail.com
Mobile No. +91-9818308353
Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-110015