Employees working in India are due for a great 2007 ahead as the latest salary increase survey by global HR consulting firm Hewitt Associates has forecasted an average wage hike of 14.5 per cent for India in 2007. This double digit salary growth has continued in India for the fourth consecutive time. Hewitt surveyed 600 companies across 21 industries in five different employee groups, and said it expected salaries in the financial sector to grow the fastest this year.
Some highlights of the study are :
Globalization and increased competition for the talent pool is responsible for forcing companies to increase incentives and compensation to attract high quality professionals and retain them. Salaries in India are continuing to rise and were likely to reach the same levels as in the more developed economies in Asia in the future.
Indian organisations were leading the multinational companies in paying higher salary hikes and that in 2006, domestic companies saw an overall salary increase of 14.9 per cent compared to the 14.3 per cent hike given by foreign-owned organizations.
The highest average increase in 2006 in Indian companies, across levels, has been recorded at the professional, supervisory and technical level, for the seventh year in a row, at 16 per cent - with a 15. 8 per cent average increase predicted in 2007. The top five industries in terms of salary increases in 2007 are expected to be banking and finance, insurance, telecom, hospitality, restaurants and engineering.The Insurance industry leads the hikes at 17 per cent with a similar increase predicted in 2007 at 16. 1 per cent, beating banking and financial services which had an average increase of 17 per cent in 2006 but is expected to record the highest increase at 16. 5 per cent in 2007. The engineering sector is likely to record a salary increase of 15. 3 per cent in 2007.