The Hindu : Karnataka News : Pay in Bangalore highest in country

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Karnataka

Pay in Bangalore highest in country

Special Correspondent

Study conducted in four cities

Average salary nine per cent higher than in Chennai
Pay in product development down by three per cent

BANGALORE: Bangaloreans are raking it in when it comes to salary, according to a report by a managing consulting firm.

Zinnov on Wednesday released its annual “Compensation and Benefit Study 2008 Report.” The study, covering Bangalore, Pune, the National Capital Region and Chennai, surveyed compensation and benefits packages for employees in 40 product development companies.

The study found that compensation levels in Bangalore were among the highest, if the “outliers” in Pune are ignored. Chennai, Pune and the NCR follow Bangalore in that order.

Bangalore was found to be nine per cent higher than Chennai and 15 per cent higher than NCR in its average salary for the junior and middle level engineering and quality positions. It was also observed that organisations have begun differentiating in salaries for top performers, average performers and senior positions. Existing employees who were average performers had received a hike of 12 per cent, senior positions 15 per cent and top performers 20 per cent while rare skill holders got a 30 per cent hike.

Salaries in Pune increased by almost 15 to 20 per cent in 2007. This, the study speculates, could be because companies establishing operations in the city face a shortage of talent.

Although the average increment in 2007 was about 14 per cent, the average salaries for engineering positions in product development companies declined by three per cent, “if one discounts the Pune outliers,” observed Shamim T., Director Human Capital Consulting, Zinnov.

Companies, she said, are trying to put a lid on salaries by offering other cash-based incentives, retention bonuses, variable pay linking pay to performance.

More significantly, they are hiring fresh talent to keep wage costs down. She said about 40 per cent of the average talent pool in the sample have experience between zero and four.

The issue will be discussed at an R&D offshoring conference 2008, to be hosted by Zinnov in Bangalore later this month.

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