Workplaces veering towards the culture of more work, less pay

Demonetisation, Brexit, the Trump presidency and fall in startup funding in India will impact salary hikes this year, with nothing more than 9.5% increment expected for ‘average’ employees.

Among sectors, consumer internet companies are expected to offer a 12.4% pay hike in 2017, the highest among all segments followed by life sciences at 11.3%, professional services at 10.9%, chemicals at 10.3% and entertainment media at 10.3%. The lowest hikes are expected for cement at 7.6% , financial institutions at 8.1% and transport at 8%.

“Political changes and economic headwinds have had an impact on business performance. However, the trend this year reflects a gradual slowing of pay increases and higher emphasis on productivity and performance,” says Anandorup Ghose, partner at Aon Hewitt India.

Compared to other countries, companies in India will still see the highest inflation-adjusted salary increases, Ghose says. Unlike last year when start-ups were hiring maximum talent and doling out increments, this year there is no industry that is leading others in attracting talent. This could also be the reason why attrition too has gone down significantly.

The overall attrition numbers for India at 16.4% were the lowest in the emerging market segment.

The manufacturing sector continues to have a controlled attrition rate of 13.1% and the services sector at 19%. As far as levels of management are concerned, attrition at the top and senior management levels was at 10.5%, followed by middle management at 12.1%, going up to as high as 18.3 at the junior management level, says the 21st annual India Salary Increase Survey by Aon Hewitt.

Political changes and economic headwinds have had an impact on business performance. However, the trend this year reflects a gradual slowing of pay increases and higher emphasis on productivity and performance ANANDORUP GHOSE, partner at Aon Hewitt India