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These sectors will offer the highest salary hikes!
Reflecting the growth expectations of 5 per cent, India Inc has projected an average salary increase of 10.3 per cent for 2013, says the Aon Hewitt Annual Salary Increase Survey.
The study shows a wide variance of salary increases across sectors. Financial services, technology, outsourcing have seen the greatest volatility and remain cautious in 2013.
Consumer and industrial sectors which so far have been resilient, also reported conservative increase projections
"In sync with the economic outlook, 10.3 per cent increase is among the lowest the country has seen in a decade (barring the subprime crisis year). Though business sentiment is strengthening on account of inflation reaching a three year low and stock markets rising upwards, the cautious streak is evident in the projected salary increase numbers," Sandeep Chaudhary, Partner, Talent & Rewards at Aon Hewitt India said.
Take a look at the sectors that will offer the highest salary hikes in 2013...
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These sectors will offer the highest salary hikes!
Pharmaceuticals
Average salary increase: 13.5%
Pharmaceutical industry in India, with a 3-year CAGR of 12.4% and projected CAGR of 15.3% is a front runner in salary increase amongst all sectors with 13.5% projections for 2013.
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These sectors will offer the highest salary hikes!
Life Sciences
Average salary increase: 13.1%
Backed by growth in allied sectors such as medical devices, medical technology and medical tourism the overall healthcare and life sciences sector also reported the highest salary increase average at 13.1%.
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These sectors will offer the highest salary hikes!
FMCG
Average salary increase: 12.3%
Riding on the back of increasing demand and changing consumer preferences, the FMCG sector has been topping the charts on salary increases for the last 5 years. The projections for this year stand at 12.3%.
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These sectors will offer the highest salary hikes!
Semiconductor industry
Average salary increase: 11.3%
A dip in sales for consumer devices, coupled with a shift to smarter devices and tablets has dampened the mood for the semiconductor industry which has reported a salary increase of 11.3%. It is down from 12.1% in 2012.
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These sectors will offer the highest salary hikes!
Software products
Average salary increase: 11.2%
On the other hand, IT product organisations, fuelled by growth opportunities in the domestic market and greater penetration in Tier 2 cities posted relatively higher salary increase of 11.2%.
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These sectors will offer the highest salary hikes!
Automobiles
Average salary increase: 11%
Automotive sector in India took a hit in FY2012 in terms of growth given the ever rising fuel costs, production cuts and temporary plant shutdowns.
However, the salary increase projections for 2013 at 11% are above the India Inc average, lower from actual increase of 12.8% in 2012.
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These sectors will offer the highest salary hikes!
Hi-tech industry
Average salary increase: 10.5%
Hi-Tech Industry posted an average salary increase of 10.5%.
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These sectors will offer the highest salary hikes!
ITeS industry
Average salary increase: 10.1%
In the face of considerable global uncertainty, the Indian ITeS industry can be described as truly resilient. The sector projects an average increase of 10.1% for 2013.
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These sectors will offer the highest salary hikes!
IT Sector
Average salary increase: 9.6%
Margin compression, a cautious outlook in terms of the global economic state and large bench strength have led to IT service organisations projecting a conservative salary increase of 9.6%.
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These sectors will offer the highest salary hikes!
Telecom
Average salary increase: 9.6%
The telecom industry, challenged by myriad business and regulatory issues continues to lag the Salary increase space with projections for 2013 at 9.6%.
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These sectors will offer the highest salary hikes!
Life insurance
Average salary increase: at 8.7%
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These sectors will offer the highest salary hikes!
Banking
Average salary increase: 8%
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These sectors will offer the highest salary hikes!
Financial industry
Average salary increase: 8%
The financial industry is still far from a full recovery. For 2013 the financial industry average salary increase projection stands at 8% with Securities closing in at 6.6%.
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These sectors will offer the highest salary hikes!
BFSI
Average salary increase: 10.2%
BFSI captives and other captives are projecting salary increase at 10.2%.
Third party service providers on account of tough global economic conditions, depreciating rupee and huge cost pressures on the other hand posted an average salary increase of 8.9%.
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These sectors will offer the highest salary hikes!
Infrastructure
Average salary increase: 6.1%
Driven by macroeconomic and sector-specific challenges such as delays in clearances, lack of funds and projects getting postponed, the Infrastructure sector is projecting relatively lower salary increase at 6.1%.
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These sectors will offer the highest salary hikes!
Other Trends
A majority of organisations (93%) made a bonus payout in 2012. However, organisations reported reduction in quantum of variable pay awards.
This is one of the strategies being adopted to contain costs and ensure a tighter alignment to performance.
While companies have not reverted to reducing coverage and eligibility of employees receiving variable pay awards, they are definitely re-examining the measures and metrics used to assess performance, ensuring strong linkage between individual performance and payout.