Hi Sonia,
The Increment Percentage this year will go down as compared to last year. Last year the increment percentage was between 10-15% and this year its going to be anywhere between 7-10% for IT companies or some IT companies may not give increaments and some company will even go for salary cuts and some companies may take a step to lay off people for sustaining in the current market scenario.
Regards,
Surendra
From India, Surat
1The Increment Percentage this year will go down as compared to last year. Last year the increment percentage was between 10-15% and this year its going to be anywhere between 7-10% for IT companies or some IT companies may not give increaments and some company will even go for salary cuts and some companies may take a step to lay off people for sustaining in the current market scenario.
Regards,
Surendra
From India, Surat
Hi Sonia,
The first thing tell me how good your company is doing. Second, is that needed. Thirdly, survival....if you can survive in this scenario for 24 months...its fine...or else plan for alternatives and increments in a very small proportion every six months. So that no projects are hamppered.
From India, Srikakulam
The first thing tell me how good your company is doing. Second, is that needed. Thirdly, survival....if you can survive in this scenario for 24 months...its fine...or else plan for alternatives and increments in a very small proportion every six months. So that no projects are hamppered.
From India, Srikakulam
Hi Sonia
Due to recission, companies are now opted for cost cutting to cope up with the present scenario, you can expect the hikes to be in single digits that too based on the business the companies are into. Some companies which might have badly affected with the recission (Sunami) might go for pay cuts too instead of hikes.
Regards
Vamsi..:)
From India, Hyderabad
Due to recission, companies are now opted for cost cutting to cope up with the present scenario, you can expect the hikes to be in single digits that too based on the business the companies are into. Some companies which might have badly affected with the recission (Sunami) might go for pay cuts too instead of hikes.
Regards
Vamsi..:)
From India, Hyderabad
hello to all!!I am working for reputed firm n Service sector in the areas of consultancy and audits.In our firm, (Co.????), even our quarterly reimbursements are postponed to half yearly payments (thats means 6 months + 2 or 3 months!! FOR RECEIVENG ACTUAL PAYMENT:( ]Further leave encashments for 2008 are CANCELLED :(now in this scenario i dont think one should be positive for great salary hike in firm like ours..........any way. hope for the best .. PREPARE FOR THE WORST!!GOD BLESS!!Bye and Good Day to allMeghana.
From India, Mumbai
From India, Mumbai
Dear Sonia,
Looking at current market senario, salary hike is not considered in many companies. The main focus is to have control on operational cost and instead of giving pinkslip how can we retain the current employees with the same cost.
Now a days every individual is aware of the situation and will not fight against the salary issues. Most of the people will be happy that they are not getting lay offs. Exceptional performers or the the employees who's salaries are very low like trainees can get the hike depending on the companies situation and the performance of the employee.
Thanks & regards,
Sonal Mahajan
From India, Pune
Looking at current market senario, salary hike is not considered in many companies. The main focus is to have control on operational cost and instead of giving pinkslip how can we retain the current employees with the same cost.
Now a days every individual is aware of the situation and will not fight against the salary issues. Most of the people will be happy that they are not getting lay offs. Exceptional performers or the the employees who's salaries are very low like trainees can get the hike depending on the companies situation and the performance of the employee.
Thanks & regards,
Sonal Mahajan
From India, Pune
Hi Sonia,
There is no hike in my Company as of now (an IT product Co).
We may decide to infact cut in case cost saving measures being undertaken do not fetch the desired results.
Yes the feel in the company is against the cuts in salary but once it becomes inescapable we will have to resort to it.
Yes it is not a GOOD HR Practice.....but may not be able to help.
Regards
Neeraj
From India, Mumbai
There is no hike in my Company as of now (an IT product Co).
We may decide to infact cut in case cost saving measures being undertaken do not fetch the desired results.
Yes the feel in the company is against the cuts in salary but once it becomes inescapable we will have to resort to it.
Yes it is not a GOOD HR Practice.....but may not be able to help.
Regards
Neeraj
From India, Mumbai
Thanks Sonal, Neeraj, Surendra, Vamsi, Uday, Harinath & Ramesh. Look forward to more inputs from other friends. Which are the sectors not affected by economy slowdown.Example - IT is most affected.
From India, Bangalore
From India, Bangalore
Dear Sonia,
Looking at the current market scenario there wont be any hike for senior level,but to retain lower level we have to give hike.
Most affected industry are IT, Banking, Retail etc.
Most of your companies are likely to tighten the screws on performance. This may mean longer work hours, work which is not up to your choice, lower tolerance towards non/weak performance.
With organisations cutting down on their expansion plans, or faced with lower business growth, forget about the promotion you were expecting.
More and more organisations will adopt the Jack Welch model of purging the bottom 10 per cent (asking the bottom performers to go). In some sectors, such as retail, realty, textiles and apparel, this figure may be higher.
Don't be surprised if you are transferred suddenly to a department/location, which is not of your choice.
Companies are likely to have a conservative approach on the per cent increments, and some sectors could see single-digit increments.
Employees in the top quartile of performers in their organisation may earn similar increases to previous years. However, the rest may see a drop in per cent increments. We are likely to see a few cases of 'increment holidays' and isolated instances of pay reductions.
Variable bonuses will be subdued, but I reckon that sales employees may see stronger incentive schemes since organisations will try hard to shore up their revenues.
The silver lining in all this is that with organisations going slow on external hiring, they will look for internal candidates. The external job market will also contract, but that does not mean there will be no job opportunities. Job opportunities will be largely fuelled by employee attrition/ turnover.
The demand for freshers will see an acute drop. The practice of fat signing-on bonuses are likely to be suspended. Largely, it is going to be a clear case of higher supply and lower demand. The only exception in the external job market is going to be for the 'star performers'.
Here are some pointers for those of us who will get impacted by the above scenario:
The first priority should be to secure your job and ensure that your name does not figure in the list of out placed employees. Pull up your socks and ensure that you do not belong to the bottom quartile of performers.
Be patient. Do not get upset at the lower increment, or delayed promotion.
Be extra cautious while taking a decision to change jobs. Unless the reason is compelling, you are possibly better off staying in your current organisation. If you do choose to make a change, negotiate hard with your new employer for a good hike and, if possible, a 'parachute mechanism' in case you are a victim of a layoff in the first year of your joining. This means you must be given 3-6 months compensation in case you are laid off.
If you are in one of the highly volatile industries (retail, realty, finance, or banking) and if you feel that your organisation is showing signs of vulnerability, proactively scan the external job market.
If you get an opportunity with a more reliable and stable brand, make the shift (even at the same salary). Look for signs of distress in your organisation (delayed salaries, vendors not being paid, senior managers leaving).
In your existing organisation, take a lot of initiative and be seen as a solid contributor in your team. If you have time, upgrade your skills. Try and be in the good books of your boss without compromising your conscience.
Salaried professionals have to wake up to the reality of what a downturn really means and 2009 is going to showcase enough of it. So far the situation is not as severe as to drop the 'oxygen masks', but yes, the 'seat belt' sign has been switched on.
From India, Mumbai
Looking at the current market scenario there wont be any hike for senior level,but to retain lower level we have to give hike.
Most affected industry are IT, Banking, Retail etc.
Most of your companies are likely to tighten the screws on performance. This may mean longer work hours, work which is not up to your choice, lower tolerance towards non/weak performance.
With organisations cutting down on their expansion plans, or faced with lower business growth, forget about the promotion you were expecting.
More and more organisations will adopt the Jack Welch model of purging the bottom 10 per cent (asking the bottom performers to go). In some sectors, such as retail, realty, textiles and apparel, this figure may be higher.
Don't be surprised if you are transferred suddenly to a department/location, which is not of your choice.
Companies are likely to have a conservative approach on the per cent increments, and some sectors could see single-digit increments.
Employees in the top quartile of performers in their organisation may earn similar increases to previous years. However, the rest may see a drop in per cent increments. We are likely to see a few cases of 'increment holidays' and isolated instances of pay reductions.
Variable bonuses will be subdued, but I reckon that sales employees may see stronger incentive schemes since organisations will try hard to shore up their revenues.
The silver lining in all this is that with organisations going slow on external hiring, they will look for internal candidates. The external job market will also contract, but that does not mean there will be no job opportunities. Job opportunities will be largely fuelled by employee attrition/ turnover.
The demand for freshers will see an acute drop. The practice of fat signing-on bonuses are likely to be suspended. Largely, it is going to be a clear case of higher supply and lower demand. The only exception in the external job market is going to be for the 'star performers'.
Here are some pointers for those of us who will get impacted by the above scenario:
The first priority should be to secure your job and ensure that your name does not figure in the list of out placed employees. Pull up your socks and ensure that you do not belong to the bottom quartile of performers.
Be patient. Do not get upset at the lower increment, or delayed promotion.
Be extra cautious while taking a decision to change jobs. Unless the reason is compelling, you are possibly better off staying in your current organisation. If you do choose to make a change, negotiate hard with your new employer for a good hike and, if possible, a 'parachute mechanism' in case you are a victim of a layoff in the first year of your joining. This means you must be given 3-6 months compensation in case you are laid off.
If you are in one of the highly volatile industries (retail, realty, finance, or banking) and if you feel that your organisation is showing signs of vulnerability, proactively scan the external job market.
If you get an opportunity with a more reliable and stable brand, make the shift (even at the same salary). Look for signs of distress in your organisation (delayed salaries, vendors not being paid, senior managers leaving).
In your existing organisation, take a lot of initiative and be seen as a solid contributor in your team. If you have time, upgrade your skills. Try and be in the good books of your boss without compromising your conscience.
Salaried professionals have to wake up to the reality of what a downturn really means and 2009 is going to showcase enough of it. So far the situation is not as severe as to drop the 'oxygen masks', but yes, the 'seat belt' sign has been switched on.
From India, Mumbai
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Salary hike projection.doc