Companies Plan Double-Digit Hike For Inflation-Hit Employees
By
siliconindia | Thursday, 10 November 2011, 17:07 IST
NEW DELHI: Waking up to the rising inflationary pressure on day-to-day life of their staff, a majority of Indian companies plan to dole out double-digit hike in the employee salaries and bonuses this fiscal, a survey has found.
The planned increments would also come at a time when an average of two out of every three employees are actively looking to switch their jobs, found the survey conducted by recruitment service provider MyHiringClub.Com.
As per the survey, conducted among senior executives such as CEOs, CFOs and HR Heads, about 86 per cent of the companies in India are planning to increase the salaries and annual bonuses of their employees in the current fiscal.
In contrast, only 14 per cent of respondents said they are not planning to give any increments to the employees.
The salaries at Indian companies are usually determined by factors such as performance of employee and employer, the available budget and the payouts at other peer group firms.
However, the companies are taking into account the impact of inflation as well in determining hike in employee salaries and bonuses this time around, the survey suggested.
"India Inc's appraisal is directly linked with the level of economic activity, but this appraisal season rising inflation is a big game changer for determining bonuses and salary increase," MyHiringClub.Com CEO Rajesh Kumar said.
He noted that double-digit hike in salaries and bonuses is expected to continue in the next fiscal also.
Despite the the planned salary hikes, a majority of the employees seem to be unsatisfied with their current jobs.
The survey found that 67 per cent employees were actively looking for a job change. About 26 per cent wished to stay in their current jobs, while the remaining were non-committal.
Source: PTI