India to get highest pay hike in APAC region: Aon Hewitt
Global HR Consultancy Aon Hewitt predicts India to receive the highest pay hike in the Asia Pacific region this year. As industries gain from the strong economic growth, India will see a hike of about 12.9%. Incidentally, the country saw an increase of 11.7% last year. Following behind are China at 9% and Philippines at 7%.
Aon Hewitt's India Practice Leader (Compensation) Nitin Sethi comments, "India's salary rise would also be among the highest in the world, companies are growing fast and demand is rising due to good economic growth.” He also said that double-digit salary increases would continue for the next couple of years and is expected to be "12-15%" across industries. Alternatively, attrition is also at high levels, touching 18.9% in 2010.
The results are based on Aon Hewitt's Annual Salary Increase Survey which involved 531 organisations and was conducted over December 2010 to January 2011.
Sectors which are expected to observe highest pay hike are engineering services at 14.4%, automotive and energy (oil/gas/power) segments at 14% each followed by information technology and outsourcing (ITES) at 12% and 11.9% respectively. Media industry would see a hike of 13.4% in 2011.
Junior manager/supervisor/ professional level employees are expected to see a hike of 13.3% whereas top/senior management people are likely to receive about 12.1% rise this year. The general/entry staff are likely to receive a salary increase of 12.7%.
The survey also revealed that variable pay as part of total compensation is increasing, as entities are linking a greater percentage of salary to individual and overall company performance.