According to the study, not only will hiring increase going forward, salaries too will see an upward movement across most industries
With companies emphasizing ever more on skills, there seems to be greater synchrony between skills and salaries, states TeamLease’s Salary Primer for 2013. According to the report, not only will hiring increase going forward, salaries too will see an upward movement across most industries. While the hiring has registered 11% growth, salaries will witness 12% increase across industries and functions, the report said.
Further, with companies striking a balance between skills and increment, attrition rate also has been brought under control, emphasizing a buoyant and mature job market. From a sectoral perspective, most of the sectors register a healthy growth in increments. In fact, even the BFSI sector which had a relatively poor increment scheme last year seems to be on a course correction and will be rewarding skilled talent accordingly. And finally, the gap between permanent salaries and temporary salaries is now negligible, the study revealed.
Key findings of the survey
The skills arms race has begun: The year saw frenetic talent acquisition activity—near 11% increase over the previous year—and equally aggressive retention initiatives that raised increment payouts to an average 12% across industries and functions. The focus is on securing valuable skills through measured and commensurate pay actions.
More industries do well on skills-increments: FMCD and BFSI, industries that have grappled with longevity unsuccessfully so far, get a grip on the equation this year. Healthcare, pharmaceuticals, power and energy walk away with even better longevity returns to their relatively low spends on increment. All this, while FMCG sees diminishing returns to a significantly increased increment spend.
Convergences not rhetoric any more: With industries such as hospitality and BPO /ITeS and prominent profiles such as project lead (IT and knowledge services) and AutoCAD engineer (automobile and allied industries) displaying unified salaries with variances in mostly low single digits, the temp versus perm distinction on salary payouts is relegated to the past. A recurring theme is that the Sales and Marketing functional domain is a predominantly temp landscape now.
Dominance of IT threatened, unsuccessfully though: Automobile and allied industries almost does a catch up (17.6% rate of growth as against the IT and Knowledge Services’ 18.2%). Automobile and Allied Industries perform better on increment payouts, however, alongside Healthcare and Pharmaceuticals. FMCG and Power and Energy tie for the second spot with substantial increment growth rates with only the latter gaining improvements on longevity.
Mumbai and Delhi trounce Bangalore: Across industries and functions—with the exception of IT and Knowledge Services and Automobile and Allied Industries—the two mega cities of Mumbai and Delhi take formidable leads with growth rates significantly higher than Bangalore. Pune curries favour with substantial salary payouts to niche profiles such as SAP Developer and specialized domains such as engineering.
Specialization wins big: Niche and high-skilled profiles such as network architect, SAP developer/ consultant and project lead are in greater demand than the generalized and traditionally well-paid profiles such as IT executive / IT manager and accountant. The “niche-set” pockets salary and increment growth rates upwards of 12% and are toasted by most industries that employ them.
Salary growth rates in the early-teens are commonplace: To not be counted among profiles that get paid well in excess of 10% almost always means a profile is not skilled enough for its industry requirements. For example, RF engineer and vigilance officer make smart gains on increments thanks chiefly to their superior and specialized skills. Draftsman and loan advisor are examples of profiles that have stagnated on this count for years in succession.
Attrition rates stabilize: Across industry 11 out of 15 industries do well to grow longevity at best or contain attrition at best. The remaining four—agriculture and agrochemicals, BFSI, BPO and IT enabled services and FMCD—are characterized by profiles that attrite regardless of increment dole outs.
Commenting on the report, Sangeeta Lala, senior vice-president and co-founder TeamLease Services, said, “The headwinds of global change, blowing hot and cold have only so much as reshaped the contours of the Indian labour markets for the better. Salaries continue to rise—more for the deserving, employers are aggressively acquiring and rewarding the right skills and capabilities, talent migration is shaped by career enrichment opportunity as much as it is by market forces, and equity has prevailed.”