How Do I Explain Our Real Estate Firm's Lagging Salary Increments in Mumbai?

CorporateHippy
Hi everyone, I'm new to the field of HR and have been here for only 10 months now. Well, it's April, and this is the first time I'm going to be involved in giving out increments. Of course, it's critical to mention that we are in the real estate industry in Mumbai.

Company Increment History

I just browsed through the history of my company, and here is what I found:

- 2007: Avg increment = 42%; Median increment = 38%
- 2008: Avg increment = 38%; Median increment = 33%
- 2009: No increments due to recession
- 2010: Avg = 35%; Median = 30%

And guess what, we are currently lagging behind the market by 30-40%! One thing to note is that we have a high number of positions at the entry and junior management levels. But how in the world can you explain something like this? It goes off the charts of every report I have ever read! Please do offer explanations.
jayaprakashvk
Conducting a Market Analysis for Salary Adjustments

To correct this vast difference, conduct a market analysis to determine the salary ranges at each level of your management. Benchmark the data and prepare an increment quantum based on the deviation, then apply the increments. I am confident that you will succeed in reaching the market levels within a couple of years, especially considering that the levels continue to increase each year for other companies.

Regards
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