The effect of the global slowdown has finally begun to take its toll. India’s largest advertising agency, HTA and Contract has frozen salary increments till September.
A subdued income growth may have prevented HTA, which has close to 1,200 employees, from offering increments. Same is the case with Contract, which has around 250 employees. Indian agencies get more than half of their revenues from multinationals and about 80 per cent of earnings comes from American companies.
Professionals in HTA and Contract said the freeze was a global directive from their parent company, the London-based WPP Group, and that the decision had nothing to do with the performance of the Indian operations.
In fact, group chairman Martin Sorrell is understood to have given directions to WPP agencies worldwide not to go ahead with their annual increments. The decision would impact the pay packet of every employee of the group. Interestingly, Ogilvy & Mather, another group agency, is going ahead with salary increments.