Dear Friends,
Seasons greetings To You,
Best Regards,
Ashish
Seasons greetings To You,
All of you (Our Seniors and my colleagues ) who are related to compensation and salary subject are requested to contribute in this topic.
Now is the time to think and therefater give suggestions to Top Management regarding the possible hike in salary .
For these reasons, I am posting some basic data that would kickstart the thinking process within yourself.
When we think about Indian scenarios we should definately think about Global scene. The global economy will be sailing at slow pace and the risk of world economy has increased significantly. The continued problems in US and european financial sectors are adding pressures to already rising inflationery issues. There is an upward pressure on prices basically due to rising Oil and food prices. The outlook of the financial crisis that started in September08 in the US and Europe have forced many banks to write off assets worth many billions of dollars with more news pouring to us on daily basis. This will erode the asset quality further as there are chances of slow growth rate everywhere. Europe is under pressure due to tough monetary conditions and higher inflation due to number of assets getting eroded in countries like Ireland,spain,etc. Thus europe will suffer as export will take a dip due to less demand from US.
Asian countries will get affected due to the ripple effect getting created in US and europe. The domestic demand of commodities and services is still large in countries like China,India but due to export activites getting slowed down to US and Europe the growth will be affected.
The GDP(%) of of India in 2007 was at 8.8% while in 2008 it is expected at around 7.8% and in 2009 it is expected at around 7.4%. Leading economists and experts from the world say that India's economy will grow at slow pace. The services sector maintained its growth rate at 10.3% in the year 2007-08. As compared to service sector the performance from manufacturing was considerably less. It was 4% in March 2008 as against 14.4% in March 07.
In the month of June-08 we saw inflation brushing at 11%.In order to curb the inflation we saw many measures taken by the govt. The Govt. hiked petrol and diesel prices by Rs.5/- and Rs.3/- respectively. The RBI has hiked the CRR by 50 basis point and the short term lending rate by a similar margin to curb inflation.
In India 300 million people are employed in agriculture. Software and BPO industries employ around 2.5 million people. The Unemployment % was roughly around 7.9% in 2007. In 2008 it is estimated at 7.3%.
The Increments that were payed in 2007 were in the range of 14% to 16% for Executive and management personnel. For Bluecollar personnel the Incremental value stood at 12.55% to 13.5%.
Hence, on the above basis what should be the compensation hike that we can propose to our Organisation. We have to keep in mind the Industry type where we are operating,the region where we are doing the business, the demand of products that we are achieving to increase, the market share whether is getting shrinked or expanded,etc.
i request all of you to contribute your views even if thet are wrong. This will certainly help ourselves to suggest good measures to our respective organisation.
Now is the time to think and therefater give suggestions to Top Management regarding the possible hike in salary .
For these reasons, I am posting some basic data that would kickstart the thinking process within yourself.
When we think about Indian scenarios we should definately think about Global scene. The global economy will be sailing at slow pace and the risk of world economy has increased significantly. The continued problems in US and european financial sectors are adding pressures to already rising inflationery issues. There is an upward pressure on prices basically due to rising Oil and food prices. The outlook of the financial crisis that started in September08 in the US and Europe have forced many banks to write off assets worth many billions of dollars with more news pouring to us on daily basis. This will erode the asset quality further as there are chances of slow growth rate everywhere. Europe is under pressure due to tough monetary conditions and higher inflation due to number of assets getting eroded in countries like Ireland,spain,etc. Thus europe will suffer as export will take a dip due to less demand from US.
Asian countries will get affected due to the ripple effect getting created in US and europe. The domestic demand of commodities and services is still large in countries like China,India but due to export activites getting slowed down to US and Europe the growth will be affected.
The GDP(%) of of India in 2007 was at 8.8% while in 2008 it is expected at around 7.8% and in 2009 it is expected at around 7.4%. Leading economists and experts from the world say that India's economy will grow at slow pace. The services sector maintained its growth rate at 10.3% in the year 2007-08. As compared to service sector the performance from manufacturing was considerably less. It was 4% in March 2008 as against 14.4% in March 07.
In the month of June-08 we saw inflation brushing at 11%.In order to curb the inflation we saw many measures taken by the govt. The Govt. hiked petrol and diesel prices by Rs.5/- and Rs.3/- respectively. The RBI has hiked the CRR by 50 basis point and the short term lending rate by a similar margin to curb inflation.
In India 300 million people are employed in agriculture. Software and BPO industries employ around 2.5 million people. The Unemployment % was roughly around 7.9% in 2007. In 2008 it is estimated at 7.3%.
The Increments that were payed in 2007 were in the range of 14% to 16% for Executive and management personnel. For Bluecollar personnel the Incremental value stood at 12.55% to 13.5%.
Hence, on the above basis what should be the compensation hike that we can propose to our Organisation. We have to keep in mind the Industry type where we are operating,the region where we are doing the business, the demand of products that we are achieving to increase, the market share whether is getting shrinked or expanded,etc.
i request all of you to contribute your views even if thet are wrong. This will certainly help ourselves to suggest good measures to our respective organisation.
Best Regards,
Ashish