 "Life sciences likely to see highest pay rise in 2016: Survey")
Life Sciences has the highest projected salary increase for 2016 for the second year in a row, said Mercer's All Industries Total Remuneration Survey. It further said there could be 10.5% expected salary increase across industries in 2016.
With respect to attrition, 12.6% attrition had been recorded across sectors, with the highest attrition reported in shared services. It also said that consumer, auto and shared services see a dip in salary projections for 2016.
As per Mercer's 2015 India, All Industries Total Remuneration Survey released today, organizations are expecting to increase base salaries by 10.5% across industries and career levels in 2016, and 48% of these companies are expecting to increase their headcount. The salary increase forecast for 2016 is quite similar to the actual salary increase for 2015.
Among different industries surveyed, the projected salary inLife sciences has the highest projected salary increase for 2016, for a second year in a row, according to Mercer’s All Industries Total Remuneration Survey.
It expects a 10.5 per cent salary increase across sectors this year. Consumer goods, automobiles and shared services see a dip in salary projections. The attrition rate recorded across sectors in 2015 was 12.6 per cent, the being in shared services.
In its 2015 India, All Industries Total Remuneration Survey, issued on Thursday, organisations expect to increase base salaries by 10.5 per cent across sectors and career levels in 2016. And, 48 per cent of these companies are expecting to increase their personnel numbers.
The general salary increase forecast for 2016 is similar to the actual rise for 2015. There are relatively higher rises projected for life sciences, information technology and chemical industries. Over the years, salary increase differentiation across sectors has narrowed but there is considerable pressure on talent retention, as budgets remain tight.
There is an increase in variable bonus pay across sectors, from the actual payout of 14.7 per cent in 2014 to a projection of 15.4 per cent in 2015, indicating business performance in the latter year was better. Variable bonuses paid in 2014 were the highest in the high-tech space, at 22.4 per cent of annual guaranteed cash. Followed by the consumer sector at 15.5 per cent.
Ruchika Pal, principal & India TRS product leader at Mercer, said: “Largely, the current pay increase points toward an optimistic economic outlook, driving positive sentiment, with companies expecting to increase their headcount. Companies in India are assertive of their growth plans and will continue to hire, especially engineers and computer science experts.”
The overall actual attrition in 2014 was 12.6 per cent. The highest was in shared services at 17.8 per cent, followed closely by the consumer sector at 17.6 per cent. There is an upward trend from last year, where overall attrition has gone up from 10.3 per cent to 12.6 per cent, indicating organisations are facing more of voluntary separation.
From a retention standpoint, the survey said sales professionals across levels continue to challenge organisations. They find it hard to attract research & development professionals, as well as engineering ones, across sectors.