First of all , let me Wish You All A Very Happy and Prosperous New Year on behalf of Arun and the trak.in team.
The year 2010 looks like a very promising one to begin with.Not so much that anything spectacular has happened, but we have seen the worst years in the latter part of 2008 and 2009.The U.S. economy bled real bad and it had a ripple effect on the global economy too.Stock Markets tumbled,jobs were lost and the businesses went down like pile of cards.But,all said and done, let bygones be bygones.Let’s celebrate the new year with some positive vibes and hope that the recovering economy goes from strength to strength.
The past year has been rather bad in terms of Salaries.Salaries took a hit across all industry verticals and employees had to make do with marginal or no hikes.Barring a few sectors like Pharmaceuticals and CPG which doled out decent salaries , other sectors felt the heat of a recession hit economy.
However, the outlook for 2010 looks promising.With the Indian Economy registering good industrial growth numbers and still going strong, this year has the makings of turning out a Good Salary Year.
As per Naukri Job Speak, the hiring activities picked up real good in the later part of the year.
Job Index for November ‘09 up by 8.38% and almost all sectors show a positive hiring outlook
As per HR Consulting firm FE , 2010 should turn out to be good year not only in terms of increased hiring activity but also in terms of Salary Hikes and bonuses too.This should come as a breather specially for the top management level which experienced the maximum brunt of salary reductions.The top management salaries took a dip of around 25-30% in CTC.The expected increase for this year is pegged at around 15-20% which is significant.
Moreover, the industry analysts suggest that even though the benefits and perks will go up significantly, the huge bonuses doled out will be reduced to around 30-35%.This is rather heartening since heavy bonuses make a sizable part of the top management salaries.With the bonuses shrinking, there will be more pressure on the executives to work harder and smarter to qualify for the performance based perks and benefits.
Banking and Financial Services Sector(BFSI) which is at top in terms of executive level salaries saw the maximum impact with the top level salaries coming down to 1 crore annually as compared to around 2-3 crores a year back.
IT/ITes sector which also saw one of the worst years in terms of top-level salaries has lifted the salary hike freeze and is primed for paying top dollar again.The winner however for the 2010 is expected to be the Retail Sector.With the likes of Bharti entering the retail market in JV with Walmart , the future looks good for the sector.
The middle management salaries should also see a decent upswing given the improving economy conditions.With the global economy still in troubled waters , the business outlook is not too rosy but the industrial demand is expected to pick up which will give some further way for hiring’s.
I seriously hope that this year should turn out real good in terms of Salary Hikes.However, I hope that a good amount of weightage is given to Performance( individual as well as organization) based variable component.One more expectation is to tie the performance incentives for the top level management with long term performance targets and not on quarterly or yearly performances.So much has been talked about the recession, but IMO the reason why companies lost their way is because the top level think tank worked to achieve short term targets to get the maximum buck.Organizations should make long term performance metrics and that will pave way for the executives to execute long term winning strategies.
Do you think 2010 will be a Good Salary Year too? Which industry do you think will pay handsomely?