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BW Businessworld

Double Digit Salary Increase In 2015

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According to the Mercer's 2014 India All Industries Total Remuneration Survey, salary increase across industries and career levels will hover around 11 per cent for the year 2015. This is an increase of 0.4 percent over the year 2014. 
Among different industries surveyed, the projected salary increase for the Medical Life Sciences sector is the highest at 12 per cent and is the lowest for the shared services and hi tech sector at 10 per cent. While the consumer goods industry has projected a salary increase of 11 per cent on the back of increase in consumer demand, the chemical and auto sectors have projected a salary increase of 10.8 per cent and 10.1 per cent respectively. 
More than 50 per cent of the survey participants indicated that their salary increase in 2014 was similar to the year 2013. The major reason being the continued pressure on HR budgets.
With respect to variable pay, the muted economic performance in 2013 led to less than target variable payouts for sales and non sales employeesin 2014. While the variable bonus payouts for 2013 performance for Non Sales employees was  17 per cent against a target of 20 per cent (across all career levels), the sales incentive payouts have been 22 per cent against a target of 28 per cent. The variation between target and actual payouts is most noticeable at the top of the organization. 
Shanthi Naresh, India Business Leader, Information Solutions, Mercer stated, "Overall the current pay increase forecasts indicate that while business sentiment is positive, companies await the sentiment to turn into actual business results before taking aggressive pay actions. In the industry context, the organization and specific roles are continuing to drive rewards decisions."
The focus is on managing the limited budget optimally while gradually incrementing the budget for double digit increments. The impact of the inflation on a person's salary will soon cool off as it is showing a downward trend. However, it remains to be seen how much are companies willing to invest in retaining and hiring quality talent.

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economy corporate news 6 hr mercer shanthi naresh