In its sixth annual India Salary Increase Survey, Hewitt Associates has predicted a fairly stable salary increase this year.
The survey, covered 310 foreign, joints venture and locally owned companies across 21 industry segments and five employee groups: Senior/ Top Management, Manager, Professional/ Technical/ Supervisory, Clerical and support, and Manual Workers. The study found that overall salary increases across employee groups in India are projected to range from 9.7 percent to 10.7 percent in 2002 on average, which is a decrease compared to 2001, when average salary increases ranged from 10.2 percent to 14.5 percent. Additionally, 11 percent of survey respondents project possible 2002 salary freezes; with the highest number seen in the Software Development & IT Solutions industries.
The Media / Entertainment / Publications industry remains very closely guarded according to Mr. Ravi Virmani, MD, Hewitt South Asia. The survey, which indicates an average increase of 16.7% last year for the sector doesn’t project any exact number for the industry this year. “The companies in the sector are very closely held and operated and we were not able to get any exact data.” He says.
Consumer Durables Goods / electronics ranks amongst the bottom 5 of the survey with only a 9 .7% increase during 2001. 2002 is expected to be even worse with the sector expected to see a drop in salaries by 8.5%.
Telecommunications and Accounting/ Consulting/Legal industries reported the highest average salary increases across all employee groups in 2001, at 18.9 percent and 18.6 percent respectively. However, the projected 2002 salary increases for these industries are marginally lower, at 12 percent and 16.2 percent, respectively.
Among the 21 industries surveyed, Automobiles/ Ancillaries, Consumer Durable Goods/Electronics and healthcare/ Medical products & Services are the only ones that have reported higher projected 2002 increases as compared to actual salary increases in 2001.
Interestingly, the survey reveals that the highest increases in 2002 were not received by Senior / Top Management, but by Professional/ Supervisor / Technical employees.
“Since management holds the greatest accountability for a company’s performance they have seen their compensation impacted the most during this economic downturn,” said Nishchae Suri, Head of the Measurement practice in India and the Middle East for Hewitt Associates.