Mumbai, Mar 15 (UNI) Average salaries in India will continue to increase by 14.5 per cent this year as compared to approximately 11.9 per cent last year, a study predicted here today.
Hewitt, a global human resource services company, in its annual study reported that for the fourth consecutive year the salaries have demonstrated a double-digit growth in India.
Hewitt's Talent and Organisation Consulting Analytics Practice in India business leader Sharad Vishvanath observed ''Due to the effects of globalisation, the war for talent is becoming increasingly fierce in India. As a result, compensation now plays an increasingly fundamental role in attracting talent and ensuring ongoing employee engagement. Salaries in India continue to rise and will most likely reach the same levels as more developed economies in Asia in the future.'' Interestingly, the study also demonstrated that locally-owned organisations are awarding higher salary increases than the multinational counterparts. Last year, locally-owned organisations saw an overall salary increase of 14.9 per cent, while foreign-owned organisations saw an overall increase of 14.3 per cent. This highlights alignment of compensation practices of homegrown organisations to global standards in a bid to strengthen their reward management practices and focus on pay for performance to attract and retain talent and enhance overall productivity.
Another factor revealed by the study is that in the hi-tech, technology and pharmaceutical companies, equity-based compensation is adopted in an effort to retain key employees, creating employee ownership and driving performance. The practice is increasingly being used by traditional brick and mortar companies. Of the participating organisations, 64 per cent offer long-term incentives, out 68 per cent say stock options are their favoured plan.
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Hewitt, a global human resource services company, in its annual study reported that for the fourth consecutive year the salaries have demonstrated a double-digit growth in India.
Hewitt's Talent and Organisation Consulting Analytics Practice in India business leader Sharad Vishvanath observed ''Due to the effects of globalisation, the war for talent is becoming increasingly fierce in India. As a result, compensation now plays an increasingly fundamental role in attracting talent and ensuring ongoing employee engagement. Salaries in India continue to rise and will most likely reach the same levels as more developed economies in Asia in the future.'' Interestingly, the study also demonstrated that locally-owned organisations are awarding higher salary increases than the multinational counterparts. Last year, locally-owned organisations saw an overall salary increase of 14.9 per cent, while foreign-owned organisations saw an overall increase of 14.3 per cent. This highlights alignment of compensation practices of homegrown organisations to global standards in a bid to strengthen their reward management practices and focus on pay for performance to attract and retain talent and enhance overall productivity.
Another factor revealed by the study is that in the hi-tech, technology and pharmaceutical companies, equity-based compensation is adopted in an effort to retain key employees, creating employee ownership and driving performance. The practice is increasingly being used by traditional brick and mortar companies. Of the participating organisations, 64 per cent offer long-term incentives, out 68 per cent say stock options are their favoured plan.
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