Contrary to surveys, salary hikes more in single digits
Unlike the 11-13% average hikes predicted by salary surveys a few months ago, the ground reality points to 4-10% across sectors.
Pay hikes this year are going to be modest.
Unlike the 11-13% average hikes predicted by salary surveys a few months ago, the ground reality points to 4-10% across sectors. Job consultants say surveys often reveal a far more optimistic picture, which doesn’t necessarily mirror the ground reality.
Experts say many firms like Infosys are staying away from hikes, while others are deferring till a favourable economic situation pans out. “If hikes happen, they would be in single digits,” says Aneesh G Laikar, CEO of recruitment firm Selectema Consulting.“Double-digit hikes would be applicable only to the top performers,” said an HR official from a mid-sized ITeS firm.
Kris Lakshmikanth, CEO and MD of search firm HeadHunters India, says IT/ITeS firms aren’t giving more than 5-8%, while those in the banking, financial services and insurance sectors are giving in the range of 8-10%.
However, experts caution employees against switching jobs in haste. “It is an employer’s market right now and employees do not have much bargaining power to lobby for a better pay elsewhere,” says Lakshmikanth.
Employees at most might be able to bargain for a 6-10% hike in another organisation if they quit in the next two to three months.Sunil Goel, director, GlobalHunt India, says this is a temporary phase as firms might give a mid-term hike later on.