Indian companies are likely to shell out an average salary increment of 10.3 per cent in the current fiscal with employees in pharma, health care and life sciences projected to get 12.4 per cent raise, says a survey.
The overall average increment is 0.3 per cent points lower than the previous fiscal (10.6 per cent), because of slow economic growth and lower attrition.
The findings are part of a survey conducted by Deloitte India, Human Capital Consulting.
Companies in pharmaceutical, healthcare and life sciences are expected to dole out an average raise of 12.4 per cent, highest across sectors in 2014-15. It is marginally lower compared to 12.6 per cent in the previous fiscal.
Given the overall mood of the economy, the retail sector will maintain a conservative estimate and is likely to offer the lowest average increment at 9.1 per cent, the survey said.
“Average annual increment percentages have reduced marginally across levels. The reduction is highest at the middle management levels,” it added.
Meanwhile, as per the survey findings the average voluntary attrition rate across sectors in the 2013-14 fiscal had been 13.4 per cent, 0.8 per cent points lower than the previous fiscal 2012-13.
Recognition awards (monetary /non-monetary), clearly defined career paths and succession plans as well as development programmes for high potential and top performers
were identified as main reasons that helped curb attrition.
The highest attrition rates were recorded in the IteS industry (16.4 per cent), Media (15.6 per cent), Hi-tech (14.2 per cent) and BFSI (14 per cent).
Logistics had the lowest average attrition level at 10. per cent followed by auto sector at 10.6 per cent.
Employees identified as top performers are likely to get an average raise of 16.2 per cent while persons at the key positions — roles in the organisation that have a maximum impact on the business — are expected to get average increment of 14.7 per cent.
According to Deloitte, career management, developing potential leaders as well as retaining and rewarding critical talent are the top three HR challenges faced by organisations across sectors.
However, it observed that to address these challenges organisations are maximising their rewards spend by identifying, segmenting and rewarding individuals who have maximum impact on the business and are focusing on hiring talented individuals, among others.