The consultancy reports that the average salary hike will go up in 2015, with FMCG and chemicals leading the way…
Global management consulting firm, Hay Group, predicts that the average salary of FMCG and chemical industry employees will rise by 11.9 and 12.3 per cent respectively, in 2015. This will be higher than the average pay hike of 11.3 per cent across all industries, and much higher than the 10.9 per cent hike that was seen in India, in 2014.
In its annual compensation report, Hay Group has broken down job roles at four levels —clerical and operational; supervisory and junior professionals; middle management and seasoned professionals; and senior management and executives. The report says that while clerical and operations professionals will see their salary grow by 11.9 per cent, that of mid-level management professionals will rise by 11.1 per cent. In fact, all increments will range between 10.6 and 11.9 per cent.
Amer Haleem, Hay Group country manager, productised services, opines that the pay rise will remain in double digits in 2015 and the median salary rise will be between 10 and 11 per cent. He finds the outlook positive, with organisations putting their hiring plans in place. Among the sectors, FMCG and chemicals are expected to lead the hiring.
The report notes that the salaries of graduates from non-tier I colleges are stagnant at Rs 3.5–4 lakh, and that 60 per cent of the companies follow a different remuneration policy for graduates, which is opposed to the company’s standard policy.
According to the report, with an overarching focus on performance, payouts are influenced by individual as well as company performances. In 2015, while FMCG, chemicals and retail will lead in the short-term variable pay with 14.5, 14.4 and 14 per cent respectively, sectors like industrial goods and transportation will also raise their variable pay to 11.8 and 9.1 per cent respectively.
The study has found that the proportion of variable pay has been ascending across the management ladder, with junior levels getting a 10.7 per cent variable, mid-levels getting a 13.5 per cent variable, and the senior management getting 18.1 per cent variable. Haleem points out a trend among companies to abandon the one-size-fits-all approach in favour of one focussed on reward strategies. He feels that in the past three years, the gap between the awards given to average employees and the top performers has widened.