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Salary levels up by 11-15 p.c.

Staff Reporter

Home-grown firms give higher pay rise than MNCs

NEW DELHI: The economic boom has led to an increase in salaries of Indian employees who received an average salary increase of between 11.4 per cent and 15.4 per cent in 2005, on a par with last year's increase, said the tenth annual Salary Increase Survey of global human resources services firm Hewitt Associates. The survey stated that the increase in salaries would continue in 2006 also where senior and top-management, besides managers and technical experts, would benefit the most.

"Due to large region-wide economic upswing and the global attention attracted by India, employers reported a more positive outlook on salary increases across industries in 2005. Though there has been an upward swing in salaries since 2002, the past two years have seen salaries stabilising with no sudden inflections since 2004," said Hewitt Associates' Asia Pacific Business Consulting Leader, Nischae Suri.

Interestingly, the survey highlighted that locally-owned organisations were giving higher salary increases than multinational companies in India. In 2005, locally-owned organisations saw an overall salary increase of 14.7 per cent, while foreign firms saw an overall rise of 13.8 per cent.

"As home-grown organisations attempt to be more global and capture larger customer bases domestically and around the world, the need for good talent becomes critical. Locally-owned firms are now beginning to align their compensation practices to global standards, strengthen their reward management practices and focus on pay for performance to attract and retain talent, and enhance overall productivity," Mr. Suri pointed out. The survey projected increase of those employed at various levels in 2006 also that include professional, supervisor and technical experts (15.1 per cent), managers (14.3 per cent), senior and top-management (13.5 per cent), clerical and support staff (12.8 per cent) and manual (10.8 per cent).

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