Salary hike likely to be bet­ter this year

Financial Chronicle - - FRONT PAGE - PRESS TRUST OF IN­DIA

EM­PLOY­EES can look for­ward to an av­er­age hike of 9-12 per cent, while top tal­ent may get as much as 15 per cent raise this year as im­prov­ing hir­ing pace is press­ing or­gan­i­sa­tions to re­tain their key per­form­ers, say HR ex­perts.

Com­pa­nies are in­creas­ingly mak­ing sharp dif­fer­en­ti­a­tion be­tween high and av­er­age per­form­ers and are adopt­ing mea­sures like vari­able pay, in­cre­ments and ca­reer op­por­tu­ni­ties to dif­fer­en­ti­ate be­tween them. Con­sumer driven sec­tors such as FMCG/CD, re­tail, me­dia & ad­ver­tis­ing are giv­ing pos­i­tive ap­praisals this year.

“Ap­praisal per­cent­age in the cur­rent year will be on an av­er­age 9-12 per cent; it is lit­tle higher than pre­vi­ous year wherein the in­crease in com­pen­sa­tion is go­ing to be more at mid-ju­nior level as com­pared to se­nior level,” said Su­nil Goel, MD, Glob­alHunt, an ex­ec­u­tive search firm.

Joseph Deva­sia, manag­ing di­rec­tor of An­tal In­ter­na­tional In­dia, a global ex­ec­u­tive re­cruit­ment firm, also noted that “ap­praisals for 2016-17 were slightly im­pacted due to de­mon­eti­sa­tion and in 2017-18 it was the GST im­ple­men­ta­tion that slowed down busi­nesses.”

Deva­sia noted the In­dian econ­omy and the job mar­ket seem to have now picked pace and 2018-19 seems a lot more pos­i­tive. Ac­cord­ing to a study by Aon, firms have ei­ther made changes or are plan­ning to make changes to their per­for­mance man­age­ment sys­tems to re­tain top tal­ent. Around 75 per cent firms use vari­able pay and 91 per cent use hike and 71 per cent ca­reer op­por­tu­ni­ties to dif­fer­en­ti­ate be­tween av­er­age and high per­form­ers.

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