India Inc to offer 10.3% raise to employees this fiscal

Overall average increment is 0.3% points lower than previous fiscal (10.6%), because of slow economic growth and lower attrition

Indian companies are likely to shell out an average salary increment of 10.3% in the current fiscal with employees in pharma, health care and life sciences projected to get 12.4% raise, says a survey.

The overall average increment is 0.3% points lower than the previous fiscal (10.6%), because of slow economic growth and lower attrition.

The findings are part of a survey conducted by Deloitte India, Human Capital Consulting.

Companies in pharmaceutical, healthcare and life sciences are expected to dole out an average raise of 12.4%, highest across sectors in 2014-15. It is marginally lower compared to 12.6% in the previous fiscal.

Given the overall mood of the economy, the retail sector will maintain a conservative estimate and is likely to offer the lowest average increment at 9.1%, the survey said.

"Average annual increment percentages have reduced marginally across levels. The reduction is highest at the middle management levels," it added.

Meanwhile, as per the survey findings the average voluntary attrition rate across sectors in the 2013-14 fiscal had been 13.4%, 0.8% points lower than the previous fiscal 2012-13.

Recognition awards (monetary /non-monetary), clearly defined career paths and succession plans as well as development programmes for high potential and top performers were identified as main reasons that helped curb attrition.

The highest attrition rates were recorded in the ITeS industry (16.4%), Media (15.6%), Hi-tech (14.2%) and BFSI (14%).

Logistics had the lowest average attrition level at 10.5% followed by auto sector at 10.6%.

Employees identified as top performers are likely to get an average raise of 16.2% while persons at the key positions -- roles in the organisation that have a maximum impact on the business -- are expected to get average increment of 14.7%.

According to Deloitte, career management, developing potential leaders as well as retaining and rewarding critical talent are the top three HR challenges faced by organisations across sectors.

However, it observed that to address these challenges organisations are maximising their rewards spend by identifying, segmenting and rewarding individuals who have maximum impact on the business and are focusing on hiring talented individuals, among others.