BANGALOR: E-Commerce companies are expected to hand out salary hikes of upto 12.4 percent this year. This is a higher number than the market average for raises across sectors, which stands at 10.6 percent. The top industries for salary hikes are high growth ones like E-commerce, infrastructure, life sciences and media companies, while the lowest percentage of raises are going to people who work in service oriented industries like retail, financial institutions and hospitality.

The key reason for salary hikes in the E-Commerce industry is expectation of positive performance and increased market competitiveness.

The E-Commerce industry is booming, and the attrition rate is going up because of it, with talented employees jumping from one firm to the other. Although the overall attrition rate remains the same as last year at 18.1 percent, the job hopping in the key talent bracket has risen to 31 percent.

This is because new players are entering the growing sector, and wish to recruit top talent. In response, more established firms have hiked up their rates across the board, and are offering strong performance bonuses.

At the e-commerce mobile payments company Paytm, the employees who have exceeded expectations will receive a 30 percent increase in salary. Employees who have met their expectations will receive a performance bonus of 15 to 20 percent this year, compared to 13 to 15 percent last year.

"We need to retain the best because there are many who want to join ecommerce from other sectors but very few who have the skills that we need. We have to train them and therefore cannot lose (to competition)," said Amit Sinha, VP, people and business for Paytm.
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