BANGALORE/MUMBAI: This may not an easy market to hunt for a new job. But
many executives disappointed with their appraisals and ensuing
increments may want to consider just that. ET spoke to HR and
recruitment heads and placement firms across many industries to map out
the kind of pay hikes executives could expect if they choose to switch
jobs now. With the exception of employees in sectors like healthcare,
which are doing relatively well or even those with niche skills, most
professionals looking to change jobs have adjusted their expectations to
market conditions.
Where employees across sectors would in earlier years expect a hike of 20% to 30%, they are willing to settle for less or even move at the same level if they think there's a better career path, a more stable job and better long-term prospects, says Gaurav Lahiri, MD of HR consulting firm Hay Group India. A 15% to 20% hike seems to be the norm for a new job. "If every other aspiration of an employee is met and salary increment is more than 15% to 20%, then the employee should make the change," adds Muninder Anand, director, information solutions, Mercer.
A candidate applying for a post in junior-to middle management can expect a 20% to 30% raise while a senior professional should make do with a 15% to 20% raise, adds Prashant Deo Singh, head - HR & general affairs, Panasonic India. A junior management employee has less than eight years of experience; middle management has 8 to 15 years while anyone above 15 years belongs to the senior management cadre. The best market, says Mercer's Anand, was in 2008, when a candidate across sectors would move for nothing less than 35% to 40%.Here's a sector-wise look at the current scenario:
Automotive: A junior candidate can expectget a 15%, while a senior employee will get 10% to 15%, says Sekhar Arora, executive director, HR strategy for Ashok Leyland. If they are hiring at all, that is. Ashok Leyland, for instance, has called for a hiring freeze. "We will recruit only on a strict-need basis and are hiring at a marginally lower raise than last year," says Arora.
Where employees across sectors would in earlier years expect a hike of 20% to 30%, they are willing to settle for less or even move at the same level if they think there's a better career path, a more stable job and better long-term prospects, says Gaurav Lahiri, MD of HR consulting firm Hay Group India. A 15% to 20% hike seems to be the norm for a new job. "If every other aspiration of an employee is met and salary increment is more than 15% to 20%, then the employee should make the change," adds Muninder Anand, director, information solutions, Mercer.
A candidate applying for a post in junior-to middle management can expect a 20% to 30% raise while a senior professional should make do with a 15% to 20% raise, adds Prashant Deo Singh, head - HR & general affairs, Panasonic India. A junior management employee has less than eight years of experience; middle management has 8 to 15 years while anyone above 15 years belongs to the senior management cadre. The best market, says Mercer's Anand, was in 2008, when a candidate across sectors would move for nothing less than 35% to 40%.Here's a sector-wise look at the current scenario:
Automotive: A junior candidate can expectget a 15%, while a senior employee will get 10% to 15%, says Sekhar Arora, executive director, HR strategy for Ashok Leyland. If they are hiring at all, that is. Ashok Leyland, for instance, has called for a hiring freeze. "We will recruit only on a strict-need basis and are hiring at a marginally lower raise than last year," says Arora.
Real Estate:
Companies are using brand value as their trump card, and not money. "We
follow a strictly no-negotiation policy and only if the candidate is
exceptional do we hike the raise by another 5%," says Milan Khurrana,
chief human resource officer for Bangalore-based Prestige Group. The
company is offering a 15% to 20% raise to rope in employees at the
junior level, 20% in middle management and 30% for the senior lot.
IT, ITES: Employers are offering a 25% increment for junior management, 20% for the middle segment and 15% to get senior professionals on board. "The deal pattern is better than the same period last year, and this would translate into more work, especially at the junior level," says Ankita Somani, IT analyst for brokerage firm Angel Broking. But for an industry that is heavily dependent on international markets, the period of uncertainty will force companies to adopt a wait-andwatch approach on what kind of deals come in and then decide on hiring.
Hiring Firms: Nearly half the senior management professionals at firms like Kelly Services, which focus mainly on the IT and ITeS domains, have seen a mere 10% to 15% increment on shifting jobs last year. And this year looks the same, says Kamal Karanath, MD of Kelly Services.
Retail: There is no thumb rule on salary in-crements, due to poor people movement over the past few years. Increments have been similar in the past two to three years but varyfrom case to case, says GR Venkatesh, head - people office, Future Group.
Healthcare: This is among the rare sectors where candidates are calling the shots. "Many private equity players are looking to invest in individual home care services and standalone hospitals. The pay is good and to get them to join chains like ours, we have to sweeten the agreement more than last year," says Umapathy Panyala, COO of Apollo Hospitals in Bangalore and its regional head for Karnataka. A junior employee looking to join a hospital chain can expect a 20% raise, a middle manager can demand a 25% to 30% raise while a senior professional should see a 30% increase on their current paycheques.
Companies are also paying more for niche skills, and the negotiation power lies with the candidate. The job role, existing compensation, internal pay parity and whether the incumbent has undergone the appraisal cycle or not matter equally, adds Deo Singh of Panasonic India.
IT, ITES: Employers are offering a 25% increment for junior management, 20% for the middle segment and 15% to get senior professionals on board. "The deal pattern is better than the same period last year, and this would translate into more work, especially at the junior level," says Ankita Somani, IT analyst for brokerage firm Angel Broking. But for an industry that is heavily dependent on international markets, the period of uncertainty will force companies to adopt a wait-andwatch approach on what kind of deals come in and then decide on hiring.
Hiring Firms: Nearly half the senior management professionals at firms like Kelly Services, which focus mainly on the IT and ITeS domains, have seen a mere 10% to 15% increment on shifting jobs last year. And this year looks the same, says Kamal Karanath, MD of Kelly Services.
Retail: There is no thumb rule on salary in-crements, due to poor people movement over the past few years. Increments have been similar in the past two to three years but varyfrom case to case, says GR Venkatesh, head - people office, Future Group.
Healthcare: This is among the rare sectors where candidates are calling the shots. "Many private equity players are looking to invest in individual home care services and standalone hospitals. The pay is good and to get them to join chains like ours, we have to sweeten the agreement more than last year," says Umapathy Panyala, COO of Apollo Hospitals in Bangalore and its regional head for Karnataka. A junior employee looking to join a hospital chain can expect a 20% raise, a middle manager can demand a 25% to 30% raise while a senior professional should see a 30% increase on their current paycheques.
Companies are also paying more for niche skills, and the negotiation power lies with the candidate. The job role, existing compensation, internal pay parity and whether the incumbent has undergone the appraisal cycle or not matter equally, adds Deo Singh of Panasonic India.
Source : http://economictimes.indiatimes.com
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