Mumbai: Indian salaries rose an average 15.1 per cent in 2007 with the highest increase coming from the real estate sector, according to a survey conducted by human resources firm Hewitt Associates.
The momentum is expected to continue in 2008, rising about 15.2 per cent, but will temper to stabilise at 9-10 per cent by 2012, Hewitt said in a statement released late on Tuesday.
"The struggle for talent and sustainability is large and rapidly growing in India," Hewitt said. "Employees are increasingly looking for great career opportunities and are actively being pursued by other organisations offering extremely attractive opportunities and packages," the company said.
However, Hewitt forecasts a shortage of people with specialist and technical skills and a lacuna in leadership talent in India. Real estate saw a 25.2 per cent rise in compensation in 2007, topping the traditionally-high paying information technology and outsourcing sectors.
Salary rise for employees at junior, senior and middle management levels beat that for the top mangement. Attrition was at an all-time high, with the insurance industry leading the pack, followed by IT-enabled services and hospitality sectors, Hewitt added.
To stem attrition, companies are increasingly benchmarking salaries to "best-in-class" companies as against the traditional industry standards. Variable pay, especially for top executives, is being used to counter high employee costs arising due to talent attraction and retention, the survey found.
Comments
0 comment