ith the appraisal season on in many organisations, leading recruitment consultant TeamLease has said that while new jobs will be generated, salary increments will be in the range of 11-13 per cent in 2016-17.
“With job market showing signs of maturity, industries are getting smarter at rewarding,” says the TeamLease Jobs & Salaries Primer Report, 2016-2017, adding that unlike last year, double digit salary growth will not be universal this time.
The report says, “Only 42 per cent profiles will witness a significant increment in the pay package this fiscal. The average salary hike in FY17 will range between 11-13 per cent across industries and functions.”
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According to the the report, employees in sectors like information technology, agriculture and agrochemicals, fast moving consumer goods (FMCG), fast moving consumer durables (FMCD), healthcare and pharmaceuticals, hospitality, retail, and telecommunications will receive double digit salary hikes.
On the other hand, raises in companies across auto and allied industries, banking financial services and insurance, business process outsourcing, and IT-enabled services, and construction, real estate along with power and energy will remain conservative.
Rituparna Chakraborty, senior vice-president, TeamLease Services, says: “The current stagnancy in salary growth is more of a course correction. The renewed focus on talent acquisition coupled with improvement in business scenario, will bring back the buoyancy in reward and compensation structure.”
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Incidentally, with the highest annualised salary growth being a mere 9.28 per cent, automobile & allied industries seems to be the lowest rewarding sector, states the report.
The report also says that transformative skills (decision making, strategy and planning) and business transactional skills (repeat sales, relationship building) will be highly valued skills at a workplace going ahead.
“Innovation captures the imagination of many a sector resulting in a 15 per cent increase in the number of new types of jobs being generated,” says the report. “The previous year’s focus on analytical jobs is now broader based, with the need for design, usability and financial analysis being the drivers of new job creation,” it adds.
In terms of cities boasting the best pay packages, Delhi has dethroned Bangalore as the top-paying city. The Capital tops the growth chart in six of the 15 industries.
“Delhi leads the hyper-growth city-sector clusters that dole out high salary increments. IT (13.65 per cent), healthcare and pharmaceutical (13.28 per cent) and telecommunication (12.67 per cent) choose Delhi as the city to reward talent in best,” says the report. The study lists Pune-Retail (13.28 per cent), Hyderabad-FMCD (12.19 per cent), Bangalore-Construction and Real Estate (11.66 per cent) and Pune-Agriculture and Agrochemicals (12.32 per cent) as the other prominent city-industry clusters.
The study also analysed the salaries of both permanent and temporary employees, and found that the salary gap between the two categories is virtually absent in the industrial manufacturing and allied sector. The study also states that blue collar profiles will garner lofty salary increments.