India is likely to witness a moderate salary increase of 7.25 per cent this year after registering years of double-digit growth as recession is affecting the pay, benefit and job prospects for employees, global human resource consultancy firm Hay Group has said.
“Overall, the picture for India has deteriorated...Now, with large numbers of organisations freezing pay, and predictions overall of median pay inflation of around 7.25 per cent after years of double-digit growth, there is evidence that organisations are having to tighten their belts,” Hay Group said in a report.
The report further said “the biggest concern for Indian companies is still the attraction and retention of talent as opposed to managing downsizing.”
This means that Indian organisations would continue to invest in competitive salaries for high performing and high potential employees, but will also need to get more creative in developing a work culture and leadership style that enables them to become employers of choice without having to resort to the check-book, Hay Group said.
Fast-growth economies with high wage inflation — such as India and China, which have seen double-digit wage growth for some years — are now predicting salary increases of less than half of 2007
From India, Madras