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Half of Indian firms to hire by year end
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Half of Indian firms to hire by year end
New Delhi: Half of all Indian companies plan to add employees over the next three months, according to Mercer India Monitor quarterly survey. Indian economy is expected to grow at over six percent and Indian industry is expected to see an eight percent salary rise, according to the Business Standard.
The survey reports that Indian IT sector has been worst hit and there has been no salary increase in this sector. However, sectors like pharmaceutical, consumer and manufacturing has shown a rise in pay by more than seven percent.
Most companies do not include variable pay in the salary increment definition but link it to fixed compensation and have a separate budget for the latter. The survey was done in 93 companies and it reports that the majority forecast a double-digit pay increase for 2010. "The salary increase forecast shows an optimistic sentiment with the overall forecast for 2010 at 10.9 percent, compared to eight percent this year. Most sectors are forecasting double-digit increases for next year. The IT sector is showing improved sentiments, with increases expected to leap back to a few percentage points next year, after a long lull of near-zero increase this year," said Gangapriya Chakraverti, India Leader of Mercer`s Information Product Solutions business.
90 percent of the survey respondents say that they have an institutionalized variable pay plan, mostly in the form of performance-based bonus plans, while a few companies also have a profit sharing scheme. Usually, 90 percent of companies review salaries once a year, with April being the most prevalent month, followed by January and July. The majority do not have a formal mid-term review policy.
Source:
http://www.siliconindia.com/shownews/Half_of_Indian_firms_to_hire_by_year_end-ni
The survey reports that Indian IT sector has been worst hit and there has been no salary increase in this sector. However, sectors like pharmaceutical, consumer and manufacturing has shown a rise in pay by more than seven percent.
Most companies do not include variable pay in the salary increment definition but link it to fixed compensation and have a separate budget for the latter. The survey was done in 93 companies and it reports that the majority forecast a double-digit pay increase for 2010. "The salary increase forecast shows an optimistic sentiment with the overall forecast for 2010 at 10.9 percent, compared to eight percent this year. Most sectors are forecasting double-digit increases for next year. The IT sector is showing improved sentiments, with increases expected to leap back to a few percentage points next year, after a long lull of near-zero increase this year," said Gangapriya Chakraverti, India Leader of Mercer`s Information Product Solutions business.
90 percent of the survey respondents say that they have an institutionalized variable pay plan, mostly in the form of performance-based bonus plans, while a few companies also have a profit sharing scheme. Usually, 90 percent of companies review salaries once a year, with April being the most prevalent month, followed by January and July. The majority do not have a formal mid-term review policy.
Source:
http://www.siliconindia.com/shownews/Half_of_Indian_firms_to_hire_by_year_end-ni
