Deloitte India releases Annual Compensation & Benefits Trends Survey India

India Infoline News Service | Mumbai |

The average salary increment across sectors is projected at 10.3% this year

With an objective to understand key compensation and benefits trends across sectors in the Indian market, Deloitte today released the fourth edition of its Annual Compensation & Benefits Trends Survey India 2014. According to the survey, the average salary increment across sectors is projected at 10.3% in FY 2014-15, which is 0.3% points lower than the previous FY 2013-14 (10.6%). The average variable pay across sectors is projected to grow at 1.2% to 18.5% in FY 2014-15, against 17.3% in FY 2013-14. Companies from more than 18 sectors participated in the survey which was conducted online for the first time.

Some of the sectors which were covered include Auto & Auto Components, BFSI, Chemical, Consumer Business, Engineering & Manufacturing, Energy & Natural Resources, Hi-Tech, IT-enabled Services, Infrastructure & Real Estate, Logistics, Media & Advertising, Pharma, Life Sciences & Health Care, Retail etc. The study, conducted among 209 organizations, presents a comprehensivereport for a variety of sectors, and specific information on compensation and benefits by various sectors.

Speaking on this, P Thiruvengadam, Senior Director, Deloitte in Indiasaid, “The increment levels this year are almost at the same levels like last year. The main reasons are lack of economic growth, and no significant movement of people. Also, inflation is not yet fully under control and there are other economic uncertainties.”

The highest increment is expected in the Pharma sector at 12.4% and the lowest projection is observed in the Retail sector at 9.1%. The highest projected variable pay is in the BFSI sector at 20.2%, while the lowest is projected in the Logistics sector at 16.9%. The highest attrition is projected in the ITeS sector at 16.4% and the lowest is in the Logistics sector at 10.5%.

The report goes on to highlight that the average increment at clerical cadre and junior management level is expected to be lower than the overall average increment at 10.3%. The retail sector is projected to have the lowest average increment at the clerical cadre at 8.6%. Meanwhile, the average increment at the top management level is significantly higher than the overall average increment; the average increment at the top management level in the ITeS and Pharmaceutical sector is significantly higher than other sectors.

Attrition rates have reduced marginally across sectors. However, it continues to be a concern inthe BFSI, Hi-Tech, ITeS and Media and Advertising Sectors. Highest attrition rate had been recorded in the clerical cadre in the ITeS sector at 26.2%. The Logistics sector has reported the lowest overall attrition at 10.5%. The Consumer Business sector has seen the least attrition among the top management level at 8.2%.Organizations across sectors attribute better career prospects, better pay opportunities and personal reasons as the top three reasons for attrition. While career management, developing potential leaders, and retaining and rewarding critical talent are the top threeHR challenges faced by organizations.

Below are some of the highlights of key sectors.
Auto& Auto Components:
  • The average salary increment in this sector is projected at9.9% in FY 2014-15, which is 0.4% points lower than the previous FY 2013-14 (10.3%)
  • The average variable pay percent in this sector isprojected at 17.6% in FY 2014-15, which is 0.3% points higher than the previous FY 2013-14 (17.3%)
  • The average voluntary attrition rate for this sector in FY2013-14 is 10.6%. Highest attrition rate is observed for the Clerical Cadre at 13.1%

Banking, Financial Services & Insurance
  • The average salary increment across this sector isprojected at 9.5% in FY 2014-15, which is 0.2% points lower than the previous FY 2013-14 (9.7%)
  • The average variable pay percent across this sector is projected at 20.2% in FY 2014-15, which is 0.4% points higher than the previous FY 2013-14 (19.8%)
  • Voluntary Attrition rate for this sector in FY 2013-14 on an average is 14.0%. Highest attrition rate is observed for the Clerical Cadre at 18.6%

IT enabled Services
  • The average salary increment across this sector is projected at 12.0% in FY 2014-15, which is 0.3% points lower than the previous FY 2013-14 (12.3%)
  • The average variable pay percent across this sector is projected at 18.5% in FY 2014-15, which is 0.3% points higher than the previous FY 2013-14 (18.2%)

Media & Advertising
  • The average salary increment across this sector is projected at 9.6% in FY 2014-15, which is 0.2% points lower than the previous FY 2013-14 (9.8%)
  • The average variable pay percent across this sector is projected at 17.5% in FY 2014-15, which is 0.3% points higher than the previous FY 2013-14 (17.2%)
  • Voluntary Attrition rate for this sector in FY 2013-14 on an average is 15.6%. Highest attrition rate is observed for the Clerical Cadre at 22.3%

Pharmaceutical, Life Sciences & Health Care
  • The average salary increment across this sector is projected at12.4% in FY 2014-15, which is 0.2% points lower than the previous FY 2013-14 (12.6%).
  • The average variable pay percent across this sector is projected at 18.4% in FY 2014-15, which is 0.3% points higher than the previous FY 2013-14 (18.1%)
  • Voluntary Attrition rate for this sector in FY 2013-14 on an average is 12.8%. Highest attrition rate is observed for the Clerical Cadre at 15.6%

    Retail
  • The average salary increment across this sector isprojected at 9.1% in FY 2014-15, which is 0.2% points lower than the previous FY 2013-14 (9.3%)
  • The average variable pay percent across this sector is projected at 18.5% in FY 2014-15, which is 0.2% points higher than the previous FY 2013-14 (18.3%)
  • Voluntary Attrition rate for this sector on an average in FY2013-14 is 13.1%. Highest attrition rate is observed for the Clerical Cadre at 15.2%

    Energy& Natural Resources


  • The average salary increment across this sector isprojected at 9.7% in FY 2014-15, which is 0.3% points lower than the previous FY 2013-14 (10%)
  • The average variable pay percent across this sector is projected at 17.4% in FY 2014-15, which is 0.2% points higher than the previous FY 2013-14 (17.2%)
  • Voluntary Attrition rate for this sector in FY 2013-14 on an average is 11.5%. Highest attrition rate is observed for the Clerical Cadre at 13.9%





 

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