New Delhi: The salaries of the top performers working in various sectors like that of FMCG, transport, retail, technology etc are set to earn a double salary hike with an increment expected to be in double digits across different sectors.
Hay Group, Mercer, Aon Hewitt, Towers Watson and Team Lease are among the firms in consensus that top performers will earn almost double the average increment.
This has set expectations of 20 per cent-plus hikes for top performers. "This year, the differentiation between top and average performers is higher. Companies are paying double to their top performers compared with average peers to retain them," said Ajit Isaac, chairman of Quess Corp.
Adding to this he further said, "There is expected to be a big supply-demand gap, and some terrific success stories of companies along with good earnings per share is making the differentiation sharper."
A raise of around 18-22 % in the e-commerce industry compared to 10% last year while the IT industry is also expected to dish out one of the largest around 100% variable payouts of the year.
"Demand far exceeds supply in the ecommerce sector at the moment as it's witnessing a huge surge in interest and expansion. Attracting and retaining talent is a priority to ensure seamless expansion," said Rituparna Chakraborty, co-founder & senior vice-president of TeamLease Services. The ecommerce sector, with revenues of over $12 billion, is expected to hire more than 1 lakh people in the next six months.
The technology sector struggling to retain their key talent will look for the employees with new skills while e-commerce top performers may get a salary hike upto 30%.
"The hi-tech industry will see higher increments because of the increasing demand for IT and IT-related services from the other economies," said Sambhav Rakyan, Data Services practice leader, Asia Pacific, Towers Watson.
Towers Watson added that the technology sector can roll out 10.7 per cent increments, up from 10.5 per cent in 2014 while TeamLease says demand for niche talent while adopting automation could see employees get even 18-22 per cent raises this year.
According to Shanthi Naresh, Mercer India business leader, Information Solutions, the manufacturing sector is expected to see higher increments this year due due to improved business pipeline (especially companies in the capital goods sector) and the impetus being given to this industry through the government's focus on the 'Make in India' campaign.
Average increments in the consumer industry are pegged at an estimated 11.9 per cent, which is at par with last year.
The automotive sector however will get 0.5% less increment compared with 10.5% last year. Employees in the telecom sector will get a barely 5 per cent raise compared with 7 per cent last year. "The fallout of the 2G scam and a lukewarm pick-up of 4G are largely responsible for the negative sentiment around telecom. Costs are going up, making survival difficult for most players," said TeamLease's Chakraborty.
In 2015, the average raise for India Inc is expected to touch 11.3 per cent compared with 10.9 per cent across industries, says the Hay Report.