Indian employers are predicting lower salary hikes for 2012 compared to 2011.
“The expected average salary hikes in 2012 is 11.54 per cent against 11.89 per cent for 2011,” suggests a compensation survey conducted by HR Consulting firm Right Step Consulting.
The survey is based on a representative sample of 2,326 Indian companies across sectors.
“The lower than expected growth in Indian economy at only 6.9 per cent is reflecting in the Indian corporate sector’s lower outlook for compensation hikes for its employees,” said Mr Vishal Bhargava, Director, Right Step Consulting.
The drop in salary hikes are expected across both foreign MNCs and Indian companies alike, reflective of slowdown in the home markets of foreign MNCs.
Drop in foreign MNCs is marginally higher from 12.17 per cent in 2011 to 11.73 per cent in 2012, a drop of 44 basis points 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.
Bucking the general trend, prominent sectors where salary hikes in 2012 are expected to be higher compared to 2011 are healthcare, automotive and pharmaceuticals. The drop in salary hikes are expected across both services and manufacturing sectors.
According to the survey, while the manufacturing sector is expecting a salary hike of 11.58 per cent (against 11.91 per cent in 2011), the services sector is expecting a salary hike of 11.49 per cent against 11.87 per cent in 2011.