Employees across corporate India are expected to get a lower average
salary hike of 11.54 per cent in 2012 compared to last year as companies
are grappling with sluggish economic activities, says a survey.
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| Salary hike- 2012 |
As per the survey
conducted by HR consulting firm Right Step Consulting, the salary hikes
for India would decline to 11.54 per cent in 2012 from 11.89 per cent
in 2011.
“After having grown at the rate of 8.4 per cent over
the last two years the Indian economy slowed down considerably in the
year ended March 2012 and the lower than expected growth in economy at
only 6.9 per cent is reflecting in the Indian corporate sector's lower
outlook for compensation hikes for its employees,” Right Step Consulting
Director Vishal Bhargava said.
The drop in salary hikes is expected across both
services and manufacturing sectors. While manufacturing sector is
expecting a salary hike of 11.58 per cent as against 11.91 per cent in
2011, the service space is expecting a salary increase of 11.49 per cent
compared to 11.87 per cent last year.
“Drop in salary hikes in manufacturing sector was
expected given that sector's estimated growth rate in 2011-12 at 3.9 per
cent is a drop of almost 50 per cent as compared to 7.6 per cent in the
previous year,” Bhargava said.
Among the sector, prominent core sectors such as power, steel, mining and construction are all expecting a lower salary hike.
“Besides, the drop in expected salary hikes in
services is on account of sharp drop in telecom and drops in sectors
like retail, IT software, BFSI and travel/hospitality,” he added.
The survey, conducted among 2,326 Indian companies
across sectors, said decline in salary hikes are expected across both
foreign MNCs and Indian companies.
“Drop in foreign MNCs is marginally higher from 12.17
per cent in 2011 to 11.73 per cent in 2012 a decline of 44 basis points
as compared to Indian companies which are expecting a drop from 11.71
per cent to 11.41 per cent a drop of 30 basis points,” Bhargava said.
Reflecting economic uncertainties and slow down in
the home markets of foreign MNCs which is an additional concern for
their India operations.
Adding to this Infosys had annonced that there is no salary hike this year.
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