The Pharmaceutical Industry, with a projected revenue CAGR* of 12% and backed by higher disposable income, the increased penetration of health insurance, focused medical infrastructure improvements, and increased consolidation within the sector, has projected the highest salary increase for 2014 at 12%.
Factors such as availability of qualified talent; cost effectiveness; capability to deliver high-value, complex services; and abundance of design opportunities in domestic sectors like power, infrastructure, mining, oil & gas, etc., make the long-term growth projection robust for the Engineering Services Industry. This reflects in the industry projecting a high salary increase of 10.6% in 2014.
The Consumer Goods Sector has been among the top salary increase industries over the last five years, and remains so this year, though the growth has come down compared to earlier years. Factors such as the rise in competition; pressure on margins given the high input prices; high spend on advertisements & promotions to fight competition, amid limited scope for increasing prices; rising interest rates and import costs; and cuts in discretionary consumption expenditure took the sheen off the Consumer growth story in 2013. Accordingly, the projections for this year stand at a conservative 10.3%.
The Automotive Sector in India continued to slow down in 2013 in terms of growth, in view of increasing fuel prices, rising interest rates, and the economic slowdowns impacting consumer spending. The industry projected a modest salary increase of 9.5% in 2014, down from 2013’s projection of 11%.
Unstable macroeconomic conditions in India for most of 2013; M&A deals drying up; low consumer spending impacting sectors like insurance, retail broking and retail banking; along with the volatile stock markets; made it a tough year for the Financial Services Industry. The projected salary increase for 2014 is 9.1%, a marginal increase from the actual percentage of 2013. The industry remains hopeful of a stronger performance in 2013, with the announcement of the new banking licenses and improving global cues. Non-Banking Financial Companies led with a projected 2014 increase of 10.1%, followed by Insurance at 9.4%, Asset Management at 9.3%, and Banks at 9.0%.
Driven by macroeconomic and sector-specific challenges such as delays in clearances, lack of funds, and projects getting postponed, the RE/Infrastructure Sector is projecting a relatively low salary increase of 9.1%. However, the sector is hopeful of resurgence in 2014, on account of upcoming general elections and government support for infrastructure projects across roads, railways, and airports. The Cabinet Committee on Investments has cleared the way for 296 projects with an estimated projected cost of 6.6 Lakh crore.
The Hi-Tech Industry projected an average salary increase of 10.2% for 2014, with the semiconductor industry leading at 11.3%, closely followed by software products at 10.8%. The IT market is expected to grow by 13 to 15% during FY 2014--15, driven by factors such as greater offshoring by certain countries, and the offshore outsourcing model gaining acceptance in previously untapped economies. Growth is also expected from somewhat underpenetrated domestic markets, coupled with rising consumer awareness, and government initiatives.
In the face of considerable global uncertainty, the Indian ITeS industry is projecting an average increase of 9.9% for 2014. Banking and other captives are projecting a salary increase of 10.3%, on the back of a stronger US dollar. Third-party service providers, on account of tougher global economic conditions and increased cost pressures, are projecting an average salary increase of 8.2%. The Knowledge Process Outsourcing firms are witnessing a resurgence and renewed investments, thus their salary increase projections for 2014 are up from earlier this year to 11.9%.
Anandorup Ghose added, “Wage inflation will continue to be a high pressure point for sectors where wage cost is a significant part of operating expenses and revenues. This year will be a complex one for organizations, offering no clear signals as to how either inflation or business numbers will move in the next two quarters. It might be a good time to be conservative and focus on ensuring that key compensation and productivity metrics are actively tracked.”
Aon Hewitt surveyed over 500 organizations representing 20 primary and 30 secondary industry sectors. This is the most comprehensive research in the area of rewards and performance. The study measures actual and projected salary increases, and compensation practices for five specific job categories, namely top/senior management, middle management, junior manager/professional/ supervisor, staff and manual workforce. The data for the survey was collected over December 2013 - January 2014.
No comments:
Post a Comment