Employees to get 14% average pay hike in 2012

ruggedtoast

In India

http://www.hindustantimes.com/India-news/NewDelhi/Employees-to-get-14-average-pay-hike-in-2012-Experts/Article1-791010.aspx

Employees can look forward to an average salary hike of 14% in 2012, up from 11% last year, while hiring activities would be robust in various services sectors, such as banking, experts believe.
Sectors like infrastructure could see average salary hike of as high as 16%, but the increments could be lower at 5% in a few segments like aviation and textiles.

Across all the sectors, the companies are expected to dole out an average pay hike of 14% -- higher than 11% in 2011, but slightly below a record 14.5% average increment given to the employees in 2007.

"The 2012 is yet another year where job seekers are going to experience positive hiring and double-digit or an average of 14% pay hike, along with handsome incentive, bonuses and perks," MyHiringClub(dot)com CEO Rajesh Kumar said.

"India Inc is also trying very hard to come out with uncertainties in this year and planning to give more concentration on front of employees satisfaction," he said.

Echoing similar views, Concord HR World CEO Shekhar Ghotgalkar said that hiring activities are set to increase in 2012, especially in the services sector, and salaries are expected to rise by 10 to 12%.

Most new jobs are expected in IT, retail, FMCG, auto, infrastructure, construction, engineering and banking sectors.

"Banking recruitment numbers will see growth. As the government wants to open up the sector, a large number of jobs will be created if new licenses are issued," Ghotgalkar said.

The experts believe that hiring activities would be better than 2011 across all the sectors, barring aviation.

In terms of sectors, infrastructure space would see an estimated 16% salary rise, while the textile and aviation sectors would be at the lower end of the spectrum with an average of 5% hike, Kumar said.

The IT sector might see a 14% salary increment, followed by 13% in healthcare sector, 12% in retail and 11% in engineering and manufacturing.

The consumer durables and FMCG sectors would also see double-digit salary hikes.

Commenting on the trends in the IT sector, Zeeways' CEO and MD Syed Farooq said: "We are in process to increase our headcount in India as well our overseas offices also."

"Mid-size IT companies like us were scared in the previous (global economic) crises, but now things are over in Indian market. We have started focusing on creating new potential clients with a geographic mix-up suited to safeguard our sales and revenues," he added.

The increments would be promising not only at junior and middle levels, but senior management level employees are also expected to get 12-14 salary hikes this year.

Besides, functions such as sales, marketing, engineering, finance and human resources are expecting better salary increments in 2012.

I go over there quite a lot for work. Its absolutely booming at the moment, but inflation is running at 10% per year.

rockitup

Reminds me a bit of when I was working at Ford Trucks, Langley from 1978 onwards. I think it was around 1979 when the £6 a week maximum pay rise was being implemented.

Their union who would have but Mr Crow's lot to shame brought back a 23% pay rise to the table but inflation was something like 15% then, I took out a personal loan from bank at 29%.

The day I joined Fords I started at 8.00am, they had a union meeting at 10am and went on all-out strike at 10.30am.... for over 9 weeks

Going back to your post though rugged toast, do you think the inflation rates is far higher than the stated 10% for consumer basics like food, energy, fuel etc? Seems that way in Philippines right now, claimed lower inflation than UK but food costs and energy prices gone through the roof.

ruggedtoast

rockitup wrote: »

Going back to your post though rugged toast, do you think the inflation rates is far higher than the stated 10% for consumer basics like food, energy, fuel etc? Seems that way in Philippines right now, claimed lower inflation than UK but food costs and energy prices gone through the roof.

I couldn't say really unless I lived there and was visiting little shops, and even then I'd be paying the foreigner price for everything anyway. There are next to no supermarkets or convenience stores in India, and the ones that do exist are priced for the wealthy.

As always the poor are the hardest hit as while there is a massive demand for skilled labour and graduates, 40% of Indian's are illiterate and arent earning in line with price increases.

Petrol is just over a pound a litre now so most of the taxis and what have you are LPG as that kind of money is just too much for most Indians to pay.

kabayiri

A few places I worked at were finding IT contract staff from India were getting a bit expensive.

There is a major UK firm planning to move contact centre ops away from India too. The new favoured place is South Africa (still a heck of a long way to go to prep )

ruggedtoast

The businesses I work, marketing sales type places, complain they are finding it very difficult to keep graduates as they are all competing in a sort of salary arms race for young skilled staff.

There should be massive opportunities for Britain in India. Their population and economy is growing exponentially and pretty much their entire infrastructure needs rebuilding from the ground up.

Conrad

ruggedtoast wrote: »

There should be massive opportunities for Britain in India. Their population and economy is growing exponentially and pretty much their entire infrastructure needs rebuilding from the ground up.

This is one of the reasons I fairly optimistic about the near to medium term. All these developing nations create wealth opportunites for us. The neg heads are too focused on America, but you know what, there's a whole rapidly growing world out there, if the old Yankee economy isn't growing so fast, no biggie really.