India Inc Hire Rate to Pay Growth.
Apr 19, 2016 | 12:00 PM IST
Apr 19, 2016 | 12:00 PM IST
'Salary increments to stay put at 11-13%'
With job market showing signs of maturity, industries are getting smarter at rewarding states TeamLease Jobs & Salaries Primer Report - 2016-2017. As per the report, unlike last year double digit salary growth will not be universal. Only 42% of the profiles will witness a significant increment in the pay package this fiscal. The average salary hike in FY16-17 will range between 11-13% across industries and functions.
According to the report Delhi seems to have dethroned Bangalore as the top paying city. The city tops the growth chart in 6 of the 15 industries.
From a sector perspective, employees in IT, Agriculture and Agrochemicals, FMCG, FMCD, Healthcare & Pharma, Hospitality, Retail and Telecommunications will receive double digit salary hikes. However, companies across Auto and allied industries, BFSI, BPO and IT enabled services, Construction & Real Estate and Power & Energy will remain conservative. With the highest annualized salary growth being a mere 9.28% Automobile & allied industries seems to be the lowest rewarding sector.
A detailed analysis governing the salaries of both perm and temp profiles, as per the report the while salary gap between temp and perm is virtually absent in the Industrial Manufacturing and Allied sector. The study also states that blue collar profiles will garner lofty salary increments.
The report also highlights that transformative skills (decision making, strategy and planning and business transactional skills (repeat sales, relationship building) will be highly valued skills at a workplace.
KEY FINDINGS OF THE SURVEY
* An overhaul of the payout scenario shakes up sectors and redistributes rewards across profiles and cities. Unlike last year, double digit salary growth is apparently elusive this year but a closer look reveals that about 56% of the cities and 42% of profiles have actually reaped this distinction and are spread unevenly across sectors.
* Innovation captures the imagination of many a sector resulting in a 15% increase in the number of new types of jobs being generated. The previous years focus on analytical jobs is now broader based, with the need for design, usability and financial analysis being the drivers of new job creation. Just 3 (out of 15) sectors Automobile and Allied, Construction and Real Estate and Healthcare and Pharmaceuticals are exceptions.
* The gap in temp and perm salaries remains steady with sectors holding on to the differentials of the last year. There are some exceptional cases where the gap is virtually absent Industrial Manufacturing and Allied, a key sector for blue collar employment, shaves this gap down to 0.76%, 1.02% and 1.06% in Chennai, Hyderabad and Chandigarh respectively.
* A plethora of sectors led by the seemingly invincible Information Technology Agriculture and Agrochemicals, FMCG, FMCD, Healthcare and Pharma, Hospitality, Retail and Telecommunications all clock up salary growth rates upwards of 11% across multiple cities. Delhi, Bangalore, Pune, Mumbai, Hyderabad and Chennai are prominent on the scale of high increments.
* Many sectors pay top dollar to IT roles, which have bubbled up to be top paid roles for such sectors. The ubiquitous SAP Consultant / Developer is followed by IT Executive and Systems Administrator in FMCG, Industrial Manufacturing and Allied, Power and Energy and Retail.
* Delhi leads the hyper-growth city-sector clusters that dole out high salary increments. IT (13.65%), Healthcare and Pharma (13.28%) and Telecommunication (12.67%) choose Delhi as the city to reward talent in best. Pune-Retail (13.28%), Hyderabad-FMCD (12.19%), Bangalore-Construction and Real Estate (11.66%) and Pune-Agriculture and Agrochemicals (12.32%) are the other prominent city-industry clusters.
* Salaries in the Blue Collar domain see a steep rise for select profiles, with employers wanting to reward and retain specialized skills. Power and Energy (Electrician, Supervisor) and Hospitality (Gym Instructor, Housekeeping) are cases where blue collar job profiles have garnered lofty salary increments this year. The demand spurt for vocational skills is predominantly coming from a least likely sector Ecommerce and their direct employment is driven by the need for minimum standards of soft skills.
* Rewarding niche and rare skills by quantifying skill levels and correlating them with business value is a practice that caught on three years ago. Rigorous analysis in compensation design, advocated by TeamLease based on our own, trendsetting, modeling of the practice, is all-pervasive today. Transformative skills (decision making, strategy and planning) and Business Transactional skills (repeat sales, relationship building) are seen to be valued highly at the workplace in the skills analysis section of the report.
Commenting on the report, Ms. Rituparna Chakraborty, Senior Vice President TeamLease Services, said, The current stagnancy in salary growth is more of a course correction. The renewed focus on talent acquisition coupled with improvement in business scenario, will bring back the buoyancy in reward and compensation structure.
A detailed report, TeamLease Annual Salary Primer analyses a variety of attributes that govern the dynamics of the employment market skills, salaries, increments and longevity (which is a measure of the time period for which a profile would stay in a job the inverse of attrition). The unified salary report covers 15 key industry verticals namely Agriculture & Agrochemicals, Automobile & Allied Industries, Consumer Durables, Power & Energy, FMCG, Manufacturing & Allied Industries, BFSI, Telecommunication, Hospitality, Healthcare & Allied Industries, BPO & Information Technology, ITeS, Retail, Construction & Real Estate and Media& Entertainment. The functional domains analyzed are Accounts, Administration Blue Collar, Support Services, Engineering, Human Resources, IT and Sales & Marketing while the locations covered are Ahmedabad, Kolkata, Bangalore, Hyderabad, Chandigarh, Mumbai, Chennai, Pune and Delhi. Salaries benchmarked in this document are mostly those pertaining to junior to mid-level profiles. The primer serves as a guide for both job seekers and employers to obtain relevant information and useful insights on talent, skills, salaries, increments and longevity.
About TeamLease Services Limited
Established in 2000 with 4 offices, 20 clients and 40 employees, TeamLease is one of Indias leading human resource services companies in the country. As on July 31, 2015, the company had 8 offices, 1000+ clients and 1,106 crore employees across India. The company started with temporary staffing and then after adding permanent recruitment in 2004, expanded its portfolio to now become the one-stop provider of human resources services from temporary staffing to payroll processing, recruitment, compliance and training services. In the years 2014, 2013 and 2010 the focus was majorly on Education & Employability and applied for NETAP (National Employability through Apprenticeship Program), acquired IIJT and signed the MoU for TeamLease Skills University (TLSU) in Gujarat respectively. This complemented the larger mission of the company of Putting India to Work by focusing on its vision of the 3 Es Employment, Employability and Education. NETAP was rolled out this year (2014) and TLSU is operational in Vadodara. As of December 31, 2015, the company had 104,946 associates spread across 9 locations in India.
Niveza Editorial Desk :
We are a team of stock market nerds trying to stay ahead of the herd. We spend our grey cells everyday to a pave a smooth road for our clients in the shaky world of stock market. While tracking the mood swings of the market we bring our clients the most rewarding deals.
LEAVE A COMMENT
LEAVE A COMMENT
Our Analysis The market witnessed a soft opening to the week and it seemed that it will be yet another dull week as we have seen the market moving in the range-bound over the last four-
From Warren Buffett to Rakesh Jhunjhunwala there are many stock investors who have mastered the art of wealth creation. There is a reason why some investors always pick the winners while others suffer heavy losses. What is the trade secret whi
Share Market News 17-January-2019
Our Analysis This week market was on the positive side following the global sentiment amid the improvement in US-China trade talk, Markets focus has now shifted to Q3 FY19 results star
Various popular stock market news portals and TV channels discuss trending stocks and provide free share market tips based on technical charts and often without in-depth research. Our research desk analyses these trending stock market tips and pro