The New Normal: India's Salary Increase Story
For Tier 1 MBA campuses in 2016, compensation is
projected at `17 lacs which is 8.8% higher than the 2015
actual number of `15.62 lacs, whereas B.Tech 2016 Tier
1 compensation is projected at `9.5 lacs which is 4.3%
higher than the 2015 actual number of `9.11 lacs.
Talent Mix
The right mix of campus hires is an important criterion
to consider before formulating an effective campus
strategy. Current business outlook, future growth
plans, reasons for hiring from campus and not laterally
are some of the parameters firms refer to before
going to campuses. Cost also plays an important
role. Hiring from wrong tier of colleges often result
in wrong expectation setting and eventual attrition.
The survey results reflect that organizations today
prefer to hire from Tier 2 and Tier 3 a lot more than
Tier 1 campuses. Over the years, firms have been able
to identify campuses which have the right set of talent
where the association can be mutually beneficial.
The firms meet the aspirations of the candidates and
the candidates are able to add value as expected by
the firm. Results show that this trend of moving to
Tier 2 and Tier 3 is true for both MBA and B.Tech.
Conclusion
The whole discussion on pay increases is becoming
far more nuanced than it used to be.
With increased pressure on margins and limited
budgets, organizations are accelerating the 'Pay
for Performance' agenda in India Inc. at large.
Even in campuses - the pay for performance story is
widely spoken about and accepted. Organizations
are heavily investing in 'communicating' with their
employees. The objective is to build a sense of fairness
and transparency and also ensure that people know
what's on the table, should they 'Over Perform'.
India is on the edge of some exiting times ahead –
rewards and HR professionals are taking the route of
unconventional method of rewards management. We are
not temperamental anymore. Instead we are poised and
are taking decisions which suit the requirement of the
business best. We are truly becoming business partners.
This is perhaps the emergence of the New Normal.
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