India Inc is expected to dole out an average pay hike of 11.2% across job roles in 2013, lower than 12% increases witnessed this year, says Hay Group, adding, pay for performance is the new mantra.
"Clerical and operations professionals are expected to beat the average of 11.2% across job levels, standing at 11.5%, while Middle Management Professionals can expect an increase of about 10.9%," it said.
The General Industry Compensation Report has pay insights on 418,414 jobs from 410 organisations spread across diverse sectors including Industrial Goods, FMCGs, Construction, Retail and Services. However, compensation practices for CEOs and senior executives in middle to large organisations are not covered.
Hay Group India's country manager (productized services) Amer Haleem said creation of a pay-for-performance ethos is the number one priority amongst all respondents, while putting a variable pay policy in place. "The most commonly cited reason for modifying a company's existing variable pay plan was 'a change in business circumstances', pointing to the increasing trend of pay and rewards being treated as a business decision rather than only the domain of compensation experts," Haleem said.
Going by the report, median starting salaries for fresh graduates would be in the range of Rs 18,500 to 25,000, with engineering roles featuring at the top of the scale. "Finance/accounting and IT/ telecommunication are amongst the other roles that are popular with the industry at present, while roles such as Administration/Support/Service and Health/Environment weigh in lower down the order," Hay Group said.
The study revealed over 80% of organizations, use their own industry sectors or selected peer groups as reference markets while aligning their compensation levels. "A relative industry-wide comparison shows Oil and Gas, Chemicals, and FMCG leading the pack in terms of the highest CTC," Hay Group said. Haleem added that sectors such as infrastructure, real estate and IT may not be rewarding their performers with similar incentives as last year although some sectors like health and life sciences and FMCG seem to fare better.