Annual Compensation & Benefits Trends Survey India · PDF fileAnnual Compensation & Benefits Trends Survey India ... Executive Summary ... Executive Summary Industry Snapshot

Annual

Compensation & Benefits

Trends Survey

India FY 2014-15

Human Capital Consulting

March 2014

Table of Content Scope, Approach & Methodology

Executive Summary

Overall Industry Report

Detailed Sector-wise Analysis

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Executive Summary




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© 2014 Deloitte Touche Tohmatsu India Private Limited

Survey Details Scope of the Survey

Increment & Variable

Pay projections for

FY 2014-15 and

comparison with FY

2013-14

Key Benefits given

across sectors

Attrition rates,

key reasons for

attrition and

mitigation

measures

Managing and

Rewarding Critical

Talent

Key Human

Resource

Challenges

faced by

Organizations

The Deloitte Compensation

Trends Survey is an annual

study conducted by Human

Capital Consulting.

The objective of the study is

to understand the key

compensation and benefits

trends across sectors in the

Indian market.

© 2014 Deloitte Touche Tohmatsu India Private Limited 4

In this edition, the on-line survey was

launched for the first time and more than

60% of the companies have submitted data through the on-line

portal

This is the fourth edition of the Annual

survey

Companies from more than 18 sectors have

participated this year ; detailed consolidated report prepared for 13

sectors

Data was collected from January to

March, 2014

Sectors

Covered

Auto & Auto

Components BFSI Chemical Consumer Business

Engineering &

Manufacturing

Logistics Media & Advertising Retail Others

Energy & Natural

Resources Hi-Tech IT enabled Services

Infrastructure & Real

Estate

Pharma, Life Sciences

& Health Care


Survey Details Survey Methodology

Design the Survey Instrument The parameters of the study were finalized and a structured questionnaire was designed as a primary data collection tool

Finalize the Target Basket The sectors covered in the study were finalized along with the leading organizations from each sector

Invite and Seek Consent for Participation A formal invitation e-mail and online questionnaire was sent to the Human Resources in the chosen organizations requesting for participation

Collect and Validate Data The responses received from all participants were validated and checked for accuracy and intended interpretation

1 2

3 4

Generate the Compensation Trends

Survey Report (FY 2014-15)

Analyze Data The data received was collated and analyzed to get detailed insights on sector wise practices, compensation and benefits trends

5 6



Top

Management

Senior

Management

Middle

Management

Junior

Management

The most senior executive in the organization (CEO), coordinating a full range of

functions, providing leadership, overall direction and control of company operations.

Also, includes key executives (direct reportees to CEO) within the organization, heading

key functions, businesses and geographies

Executives who directly report to the Top Management, and manage a range of

functions. However, they are not regarded as Top Management. This also includes

direct reportees to different key functional, business and geographical heads

Includes executives who directly report to Senior Management, with supervisory

responsibility for a sub-function, part of a business, geography etc.

Includes supervisory staff usually involved in the day to day functioning of a small

team (First Level of Management Cadre). Also, includes entry level employees with

professional qualification

.

Includes non-management staff who work as individual contributors reporting to

Management

Survey Details Management Definitions

Clerical

Cadre

10P/ The lower decile position

(where one-tenth of the

sample has lower data)

25P/ The lower quartile position

(where one quarter of the


50P/ The middle position (where

half of the sample has lower

and half has higher data)

75P/ The upper quartile position

(where three-quarters of the


90P/ The upper decile position

(where nine-tenth of the


Percentile Definitions

Top Performers: Employees who are key

contributors, demonstrate high performance,

may be qualified for broader roles within the

same profession and have reached the

potential to move “upward’ in a management

capacity

High Potentials: Employees who have been

identified as having the potential, ability and

aspiration for higher positions within the

company

Key Positions: Roles in the organization that

have a maximum impact on the business,

require expertise in terms of

technical knowledge and are difficult to

replace / find talent for in the external market

Critical Talent Definitions



** Others include companies in Hospitality, Professional Services, Agriculture, Aviation, Export and Social Services sectors. Considering the limited number of responses

from these sectors within the specified timelines, separate sector reports have not been published

209 organizations from 18 sectors have participated in the Compensation Trends Survey for FY 2014-15

5.3%(11) 5.3%(11)

8.6%(18)

4.8%(10)

3.8%(8)

12.4% (26)

3.8% (8)

10.5% (22)

2.9% (6)

3.8% (8)

10.5% (22)

4.3% (9)

8.6% (18)

15.3%(32)

Chemical Consumer

Business

Energy Hi-Tech ITeS Infrastructure

& Real Estate

Logistics Auto & Auto

Comp.

BFSI Media &

Advertising

Pharma, Life

Sciences Retail Others**

Survey Details Participant Profile

Annual

Revenue

Employee

Strength (20)

(38)

(21)

(44)

Engineering &

Manufacturing

12.0%

16.0%

10.0%

18.0%

44.0%

<100 Crore

100-300 Crore

300-500 Crore

500-1000 Crore

>1000 Crore

(92)

(25)

(33)

(21)

(38)

23.0%

27.3% 21.1%

10.0%

10.5%

8.1% < 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

(21)

(44)

(22) (48)

(57)

(17)


Participant List is for private circulation amongst participants of

Human Capital Compensation & Benefits Trends Survey FY 2014-15


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Executive Summary Key Findings

The average variable pay percent across sectors is

projected at 18.5% in FY 2014-15, which is 1.2% points

higher than the previous FY 2013-14 (17.3%)

The average voluntary attrition rate across sectors for FY

2013-14 is 13.4%, 0.8% points lower than the previous FY

2012-13 (14.2%)

Organizations across sectors attribute Better Career

Prospects, Better Pay Opportunities and Personal

Reasons as the top three reasons for attrition

Career Management, Developing Potential Leaders and

Retaining and Rewarding Critical Talent are the top three

HR challenges faced by organizations across sectors

The average salary increment across sectors is projected

at 10.3% in FY 2014-15, which is 0.3% points lower than

the previous FY 2013-14 (10.6%)

01

02

03

04

05


The highest projected increment is in the Pharma sector at

12.4%, and the lowest projection is observed in the Retail sector at

9.1%

The highest projected variable pay is in the

BFSI sector at 20.2%, while the

lowest is projected in the Logistics sector at 16.9%

The highest attrition is projected in the

ITeS sector at 16.4% and the lowest is in the Logistics sector

at 10.5%

The highest attrition is projected at the

Clerical Cadre in the ITeS sector, followed by the Clerical Cadre

in the Media & Advertising Sector


Executive Summary Industry Snapshot

Sectors

Average Increments Average Variable Pay

Actual

FY 2013-14

Projected

FY 2014-15 Change Actual

FY 2013-14

Projected

FY 2014-15 Change

Auto & Auto components 10.3 9.9 -0.4 17.3 17.6 0.3

Banking & Financial Services 9.7 9.5 -0.2 19.8 20.2 0.4

Chemical 11.9 11.6 -0.3 17.4 17.8 0.4

Consumer Business 10.9 10.6 -0.3 19.4 19.8 0.4

Engineering & Manufacturing 11.2 10.9 -0.3 17.8 18.2 0.4

Energy 10.0 9.7 -0.3 17.2 17.4 0.2

Hi-Tech 11.7 11.5 -0.2 18.6 18.8 0.2

Information Technology Enabled

Services 12.3 12.0 -0.3 18.2 18.5 0.3

Infrastructure & Real Estate 9.7 9.4 -0.3 16.8 17.1 0.3

Logistics 9.4 9.2 -0.2 16.6 16.9 0.3

Media & Advertising 9.8 9.6 -0.2 17.2 17.5 0.3

Pharmaceutical, Life Sciences &

Health Care 12.6 12.4 -0.2 18.1 18.4 0.3

Retail 9.3 9.1 -0.2 18.3 18.5 0.2

Overall Industry 10.6 10.3 -0.3 17.3 18.5 1.2

In %

Average Projected Increments for

Key Positions and Performers

13.8%

16.2%

14.7%

High Potentials

Top Performers

Key Positions

Average Projected Increments

based on Organization Revenue

9.8%

10.1%

10.3%

< 100 Crore

100 – 300 Crores

300 – 500 Crore

10.2%

10.6%

500 – 1000 Crore

> 1000 Crore



Executive Summary




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© 2014 Deloitte Touche Tohmatsu India Private Limited © 2014 Deloitte Touche Tohmatsu India Private Limited

Overall Industry Analysis Average Annual Increments FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

OverallIndustry

Auto BFSI Chem CB Eng Energy Hi-Tech ITeS Infra Log Media Pharma Retail

FY 2013-14 FY 2014-15

10.6 10.3 9.7 11.9 10.9 11.2 10.0 11.7 12.3 9.7 9.4 9.8 12.6 9.3

10.3 9.9 9.5 11.6 10.6 10.9 9.7 11.5 12.0 9.4 9.2 9.6 12.4 9.1

FY 2013-

14

FY 2014-

15

In %

The overall

average annual

increment for FY

2014-15 is

projected at

10.3%. Overall

the increment has

decreased by

0.3% points from

FY 2013-14

1

The Retail

sector maintains a

conservative

estimate given the

overall mood of

the economy and

is expected to

have the lowest

average increment

at 9.1%

3

The highest

decrease in

projected

increment is

observed in the

Auto & Auto

Components sector

2 In Logistics,

Retail and

Infrastructure

sectors, the

projected

increment is

significantly lower

than the industry

average

5

In Pharma, ITeS,

Chemical and Hi-

Tech sectors, the

projected

increment is

significantly higher

than the industry

average

4

13


Overall Industry Analysis Annual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 7.2 8.8 10.1 11.5 13.0 10.0

JM 7.4 9.0 10.3 11.9 13.6 10.2

MM 7.4 8.7 10.4 12.3 13.8 10.6

SM 7.5 9.3 10.6 12.4 14.3 10.5

TM 8.1 9.6 11.4 13.2 15.1 11.3

Level-wise Increment Percentiles

In %

Comparison of Level-wise Average Increments Across Sectors

10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.4 11.3 10.6 10.7

9.8 11.2 11.9

9.3 8.7 9.6 11.8

8.9

10.6 10.0 9.6

11.5 10.7 10.8 9.9

11.4 12.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.9 10.8 11.1

10.3

11.7 12.6

9.7 9.4

10.2

12.6

9.3

11.3 10.8 10.3

12.6 11.7 11.8

10.7

12.9 13.3

10.5 9.9

10.4

13.2

9.5

OverallIndustry


TM

SM

MM

JM

CL


The average increment at Clerical Cadre and Junior

Management level is expected to be lower than

the overall average increment at 10.3%

The average increment at the Top Management level in the ITeS and

Pharmaceutical sectors is significantly higher

than other sectors

The Retail sector projected the lowest

average increment at the Clerical Cadre (8.6%)

The average increment at the Top Management level is significantly higher

than the overall average increment at

10.3%


Overall Industry Analysis Average Annual Increments FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)

In % 10P 25P 50P 75P 90P Average

FY 2013-14 7.2 9.1 10.7 12.4 15.2 10.6

FY 2014-15 7.1 9.0 10.2 12.2 15.0 10.3

Average Increments Across Levels

10.0

10.2

10.6 10.5

11.3

10.2

10.4

10.9

10.7

11.5

9.0

9.5

10.0

10.5

11.0

11.5

12.0

Clerical JM MM SM TM

FY 2014-15 FY 2013-14

In %


Higher increments across sectors is expected to be

around the 15% mark. However, on the lower

side, the increments have also reduced to 7.1%

In comparison to other percentiles, a

significant reduction has been observed in

the median (50P) increment

Average annual increment percentages

have reduced marginally across levels; the

reduction is highest at the Middle Management

level

Majority of the organizations have given increments to

all their employees in the range of 7.1-15%,

across all levels

© 2014 Deloitte Touche Tohmatsu India Private Limited © 2014 Deloitte Touche Tohmatsu India Private Limited

Overall Industry Analysis Average Annual Variable Pay FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)

0.0

5.0

10.0

15.0

20.0

25.0

OverallIndustry


FY 2013-14 FY 2014-15

17.3 17.3 19.8 17.4 19.4 17.8 17.2 18.6 18.2 16.8 16.6 17.2 18.1 18.3

18.5 17.6 20.2 17.8 19.8 18.2 17.4 18.8 18.5 17.1 16.9 17.5 18.4 18.5

FY 2013-

14

FY 2014-

15

In %

The overall

average annual

variable pay for

FY 2014-15 is

projected at

18.5%. Overall,

the variable pay

has increased by

1.2% points from

FY 2013-14

1

The Logistics

sector maintains a

conservative

estimate and is

observed to have

the lowest

projected average

variable pay at

16.9%

3

The highest

increase in the

projected variable

pay is observed in

the BFSI,

Chemicals,

Consumer Business

and Engineering &

Manufacturing

sectors

2 In the Infrastructure

& Real Estate and

Energy & Natural

Resources sectors,

the projected

variable pay is

significantly lower

than the industry

average

5

In the BFSI and

Consumer

Business sectors,

the projected

variable pay is

significantly higher

than the industry

average

4

16


Overall Industry Analysis Annual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 8.2 10.4 12.2 15.2 18.5 12.1

JM 10.7 13.5 16.6 20.2 23.4 16.7

MM 13.1 16.1 18.7 24.3 29.6 18.9

SM 15.2 18.6 22.3 28.3 34.0 22.4

TM 16.8 20.2 24.0 30.1 36.6 24.2

Level-wise Variable Pay Percentiles

In %

Comparison of Level-wise Average Variable Pay Across Sectors

12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.7 18.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7 16.4 16.4

18.9 17.4 20.2

17.9 19.7

18.1 17.3

18.7 18.6 17.3 16.7

17.2 18.6 18.7

22.4 21.6

26.5

21.7 24.3

22.9 20.9

23.7 23.2 20.1 20.2

21.3 23.4 23.2

24.2 25.3

29.5

25.6

27.6 27.2

25.2

27.4 26.9

23.6 23.2 25.8

27.1 26.8

OverallIndustry


TM

SM

MM

JM

CL


The average variable pay at the Clerical Cadre and Junior

Management levels is expected to be lower

than the overall average variable pay

at 18.5%

The average increment at the Top Management level in

the BFSI sector is significantly higher than other sectors

The Logistics sector projected the lowest average variable at

the Clerical Cadre (11.1%)

The average increment at the Top Management level is significantly higher


18.5%


Overall Industry Analysis Average Annual Variable Pay FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 7.5 13.1 17.4 27.0 35.6 17.3

FY 2014-15 8.1 13.4 18.6 28.2 36.4 18.5

Average Variable Pay Across Levels

12.1

16.7

18.9

22.4

24.2

11.6

16.2 17.6

21.3 23.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0


FY 2014-15 FY 2013-14

In %


Higher variable pay across sectors is

expected to be around the 36% mark.

Similarly, on the lower side, the variable pay has also increased to

8.1%


significant increase has been observed in

the median (50th percentile) and 75th

percentile variable pay

Average annual variable pay

percentages have increased marginally

across levels; the increase is highest at

the Middle Management level

Majority of the organizations have given variable pay

to all their employees in the

range of 8.1-36.4%, across all levels


Overall Industry Analysis Key Benefits

Car Policy – Car Value

In % Clerical JM MM SM TM

< 3 Lacs - - - - -

3 - 5 Lacs - 28.2 34.4 11.0 -

5 - 8 Lacs - 29.2 44.5 23.0 -

8 -12 Lacs - - 20.1 46.9 7.2

> 12 Lacs - - 1.0 19.1 92.8

N/A 100.0 42.1 - - -

Car Policy – Fuel per Month Medical Insurance – Premium Paid by Employer

Leave Encashment


< 5000 - 23.9 21.1 12.9 -

5000 - 8000 - 31.1 42.1 26.3 0.5

8000 -12000 - - 23.9 30.1 16.3

12000 - 15000 - - 12.9 18.2 21.5

> 15000 - - - 11.5 37.8

On Actuals - - - - 23.9

N/A 100.0 45.0 - - -

Car Policy – Driver Allowance


Provided by - - 43.5% 69.4% 92.3%

Average

Amount per

Month

- - 8000-12000 9000-14000 10000-18000

Mobile Policy – Bill Reimburse per Annum


< 5000 - - - - -

5000 - 10000 - 30.1 45.0 28.7 -

10000 - 15000 - 26.8 38.8 38.3 26.8

> 15000 - 11.0 16.3 19.6 30.6

On Actuals - - - 13.4 42.6

N/A 100.0 32.1 - - -

19.1%

34.0%

25.8%

12.4% Employee only

Employee & spouse

Employee, spouse anddependent childrenEmployee, spouse, dependentchildren and dependent parents

87.6% companies allow leave encashment

companies allow leave encashment during tenure 30.1%

57.4% companies allow leave encashment only after separation

(40)

(71)

(54)

(26)



Overall Industry Analysis Voluntary Attrition Analysis

13.1

18.6

14.6 16.3

14.2 13.9

20.2

26.2

15.6

12.8

22.3

15.6 15.2

9.3

12.2 10.4

8.2 9.2 8.7

12.6 13.2 10.2

9.1

12.8 11.9 11.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0


CL JM MM SM TM

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

OverallIndustry


FY 2012-13 FY 2013-14

14.2 11.6 15.3 13.7 13.5 12.2 12.6 15.6 17.8 14.3 11.4 17.2 14.1 13.8

13.4 10.6 14.0 12.2 12.5 11.8 11.5 14.2 16.4 13.2 10.5 15.6 12.8 13.1

FY 2012-

13

FY 2013-

14

In %

Comparison of Level-wise Voluntary Attrition Rate Across Sectors

Voluntary Attrition Rate Across Sectors

In %



Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent

Top three Reasons for Attrition

Better Career Prospects

Better Pay Opportunities

Personal Reasons (Marriage, Health, Family, Relocation etc.)

Top three Measures Taken to Curb Attrition

Recognition Awards (Monetary /Non-monetary)

Clearly defined Career Paths & Succession Plans

Development Programs for High Potentials and Top Performers

Top three Methods to Manage and Reward Critical Talent

Faster Growth Opportunities

Better Performance Linked Incentives

Skill Enhancement Training Programs

Overall Industry Analysis Attrition Trends – Reasons and Mitigation Measures


Highest attrition rate has been

recorded at the Clerical Cadre in the ITeS sector

(26.2%)

The Logistics sector has reported the lowest overall attrition at 10.5%

and also the lowest at the Clerical

Cadre at (12.8%)

Attrition rates have reduced marginally

across sectors. However, it continues to be a concern in the BFSI, Hi-Tech, ITeS

and Media & Advertising sectors

The Consumer Business sector has reported the least

attrition at the Top Management level

(8.2%)


Overall Industry Analysis Key HR Challenges

Retaining & Rewarding the Critical Talent Organizations are maximizing their rewards spend by identifying,

segmenting and rewarding individuals in the organization who have

maximum impact on the business

Career Management Organizations are investing in a combination of structured planning

and identifying the employee aspirations to achieve career goals of

the employees in a changing economy

Attracting Talent Organizations are increasingly focused on hiring talented

individuals as a critical ingredient in their talent acquisition process

Developing Potential Leaders Organizations are developing potential leaders to lead with vision,

passion and integrity, inspiring the people around them to achieve

goals even in challenging times

Employee Engagement Organizations support employee engagement to ensure that the

employees are committed to the organization’s goals, motivated to

contribute to the organization's success, at the same time

enhancing their own sense of well-being

Developing

Potential Leaders

Career

Management

Attracting Talent

Average Age of Employees

31 Clerical/

JM/

MM/

SM/

TM/

31

37

42

47

HR

Challenges

Measures Taken to Address HR Challenges



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Auto & Auto

Components


Auto & Auto Components Executive Summary: Key Findings

The average variable pay percent in this sector is



The average voluntary attrition rate for this sector in FY

2013-14 is 10.6%. Highest attrition rate is observed for

the Clerical Cadre at 13.1%

Organizations attribute Better Career Prospects, Personal

Reasons and Better Utilization of Current Skills as the

main reasons for attrition

Employee Engagement, Developing Potential Leaders

and Retaining and Rewarding the Critical Talent are the

key HR challenges faced by this sector

The average salary increment in this sector is projected at

9.9% in FY 2014-15, which is 0.4% points lower than the

previous FY 2013-14 (10.3%)

Employee

Strength

Employee

Strength

18.2%

81.8%

<100 Crore

100-300 Crore

300-500 Crore

500-1000 Crore

>1000 Crore

36.4%

45.5%

9.1%

9.1% < 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

01

02

03

04

05

Annual

Revenue

Employee

Strength

25


Auto & Auto Components Annual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 7.4 8.7 9.6 11.2 13.2 9.5

JM 7.6 8.9 9.8 11.5 13.6 9.6

MM 7.7 9.1 10.1 11.8 13.8 10.0

SM 8.1 9.0 10.4 12.7 14.5 10.2

TM 8.2 9.3 10.7 12.7 15.1 10.8

In %


10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.4 11.3 10.6 10.7

9.8 11.2 11.9

9.3 8.7 9.6 11.8

8.9

10.6 10.0 9.6

11.5 10.7 10.8 9.9

11.4 12.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.9 10.8 11.1

10.3

11.7 12.6

9.7 9.4 10.2

12.6

9.3

11.3 10.8 10.3

12.6 11.7 11.8

10.7

12.9 13.3

10.5 9.9

10.4

13.2

9.5

OverallIndustry


TM

SM

MM

JM

CL


26

The average increment at Clerical

Cadre and Junior Management level is expected to be lower


9.9% in this sector

The average increment at Top

Management level is significantly higher

than the overall industry average increment (10.3%)

Junior and Middle Management levels reported maximum decrease in average

increments compared to the overall

industry

Senior Management level reported minimum

decrease in average increments compared to

the overall industry


Auto & Auto Components Average Annual Increments FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 7.5 9.1 10.5 12.7 15.3 10.3

FY 2014-15 7.3 8.7 9.8 12.5 15.0 9.9


9.5 9.6

10.0

10.2

10.8

9.7 9.7

10.2 10.3

11.0

8.5

9.0

9.5

10.0

10.5

11.0

11.5


FY 2014-15 FY 2013-14

In %

27

Higher increments across this sector is expected to

be around the 15.0% mark. However, on the

lower side, the increments have also

reduced to 7.1%







level


all their employees in the range of 7.3-15.0%, across all

levels


Auto & Auto Components Annual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 9.8 11.3 12.4 15.3 17.8 12.5

JM 11.4 13.8 15.9 19.2 22.1 15.7

MM 12.8 15.3 17.5 22.7 27.5 17.4

SM 15.9 18.6 21.6 27.2 32.6 21.6

TM 16.8 21.3 25.4 30.8 35.8 25.3

In %


12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.7 18.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7 16.4 16.4

18.9 17.4 20.2

17.9 19.7

18.1 17.3

18.7 18.6 17.3 16.7

17.2 18.6 18.7

22.4 21.6

26.5

21.7 24.3

22.9 20.9

23.7 23.2 20.1 20.2

21.3 23.4 23.2

24.2 25.3

29.5

25.6

27.6 27.2

25.2

27.4 26.9

23.6 23.2 25.8

27.1 26.8

OverallIndustry


TM

SM

MM

JM

CL


28

The average variable pay at Clerical Cadre, Junior and Middle Management

levels is expected to be lower than the overall

average variable pay at 17.6% in this sector

The average variable pay at Senior and Top Management level is

significantly higher than the overall industry average variable pay

(18.5%)

The Clerical Cadre and Top Management levels reported an

increase in average variable pay compared to the overall industry

The Clerical Cadre reported minimum increase in average

variable pay compared to the overall industry


Auto & Auto Components Average Annual Variable Pay FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 8.8 12.6 17.2 26.2 34.8 17.3

FY 2014-15 9.6 13.5 17.4 26.7 35.4 17.6


12.5

15.7

17.4

21.6

25.3

11.9

13.5

16.5

20.1

24.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0


FY 2014-15 FY 2013-14

In %

29

Higher variable pay across this sector is

expected to be around the 35% mark. However,

on the lower side, the variable pay has also

increased to 9.6%

In comparison to other percentiles, a significant increase

has been observed in the 25th percentile

variable pay

Average annual variable pay percentages have increased marginally

across levels; the increase is highest at the Junior Management level

Majority of the organizations have

given variable pay to all their employees in

the range of 9.6-35.4%, across all

levels


Auto & Auto Components Key Benefits



< 3 Lacs - - - - -

3 - 5 Lacs - 18.2 36.4 9.1 -

5 - 8 Lacs - 18.2 45.5 18.2 -

8 -12 Lacs - - 18.2 54.5 9.1

> 12 Lacs - - - 18.2 90.9

N/A 100.0 63.6 - - -


Leave Encashment


< 5000 - 18.2 18.2 9.1 -

5000 - 8000 - 27.3 54.5 27.3 -

8000 -12000 - - 18.2 36.4 9.1

12000 - 15000 - - 9.1 18.2 18.2

> 15000 - - - 9.1 45.5

On Actuals - - - - 27.3

N/A 100.0 54.5 - - -



Provided by - - 36.4% 54.5% 90.9%

Average

Amount per

Month

- - 8000-12000 8000-12000 10000-18000



< 5000 - - - - -

5000 - 10000 - 45.5 54.5 27.3 -

10000 - 15000 - 9.1 45.5 45.5 18.2

> 15000 - - - 18.2 36.4

On Actuals - - - 9.1 45.5

N/A 100.0 45.5 - - -

18.2%

36.4%

36.4%

9.0% Employee only

Employee & spouse





(2)

(4)

(4)

(1)

30


Auto & Auto Components Key HR Challenges and Managing Attrition

Developing

Potential

Leaders

Employee

Engagement

Attracting Talent


32 Clerical/

JM/

MM/

SM/

TM/

30

39

44

50

Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent



Personal Reasons (Marriage, Health, Family,

Relocation etc.)

Better Utilization of Current Skills


Cleary defined Career Paths & Succession Plans

Employee Higher Education Plan

Recognition Awards (Monetary/Non-Monetary)

Top three Methods to Manage and Reward Critical

Talent


Higher Salaries


HR

Challenges

31

Banking,

Financial

Services &

Insurance


BFSI Executive Summary: Key Findings

The average variable pay percent across this sector is



Voluntary Attrition rate for this sector in FY 2013-14 on an

average is 14.0%. Highest attrition rate is observed for the

Clerical Cadre at 18.6%


Reasons and Better Pay Opportunities as the main

reasons for attrition

Compensation Structuring, Developing Potential Leaders

and Retaining and Rewarding the Critical Talent are the

key HR challenges faced by this sector

The average salary increment across this sector is


lower than the previous FY 2013-14 (9.7%)

Employee

Strength

22.2%

33.3% 5.6%

5.6%

33.3% <100 Crore

100-300 Crore

300-500 Crore

500-1000 Crore

>1000 Crore

38.9%

22.2%

5.6%

16.7%

16.7% < 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

Employee

Strength

01

02

03

04

05

Annual

Revenue

Employee

Strength

33


BFSI Annual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 7.4 8.5 9.2 11.3 13.0 9.3

JM 7.6 8.6 9.2 11.5 13.3 9.4

MM 7.8 8.5 9.5 11.7 13.4 9.6

SM 7.9 9.0 10.2 12.0 14.2 10.4

TM 8.1 9.1 10.5 12.6 15.1 10.3

In %


10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.4 11.3 10.6 10.7

9.8 11.2 11.9

9.3 8.7 9.6 11.8

8.9

10.6 10.0 9.6

11.5 10.7 10.8 9.9

11.4 12.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.9 10.8 11.1

10.3

11.7 12.6

9.7 9.4

10.2

12.6

9.3

11.3 10.8 10.3

12.6 11.7 11.8

10.7

12.9 13.3

10.5 9.9

10.4

13.2

9.5

OverallIndustry


TM

SM

MM

JM

CL


34

The average increment at Clerical Cadre and Junior Management

level is expected to be lower than the overall average increment at

9.5% in this sector

The average increment at Top and Senior

Management levels is marginally higher than

the overall industry average increment

(10.3%)

Top and Middle Management levels reported maximum decrease in average

increments compared to the overall industry

Senior Management level reported minimum decrease in average



BFSI Average Annual Increments FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 7.4 8.7 9.8 12.1 15.2 9.7

FY 2014-15 7.2 8.4 9.3 11.8 14.8 9.5


9.3 9.4

9.6

10.4 10.3

9.6 9.6

10.0

10.6 10.6

8.5

9.0

9.5

10.0

10.5

11.0


FY 2014-15 FY 2013-14

In %

35

Higher increments across this sector is


on the lower side, the increments have also

reduced to 7.2%







level



levels



12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.7 18.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7 16.4 16.4

18.9 17.4 20.2

17.9 19.7

18.1 17.3

18.7 18.6 17.3 16.7

17.2 18.6 18.7

22.4 21.6

26.5

21.7 24.3

22.9 20.9

23.7 23.2 20.1 20.2

21.3 23.4 23.2

24.2 25.3

29.5

25.6

27.6 27.2

25.2

27.4 26.9

23.6 23.2 25.8

27.1 26.8

OverallIndustry


TM

SM

MM

JM

CL

BFSI Annual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 10.6 12.3 14.3 18.2 21.7 14.2

JM 13.4 15.9 18.8 23.6 28.2 18.6

MM 15.7 18.2 20.3 26.7 32.8 20.2

SM 17.8 22.5 26.7 31.7 36.5 26.5

TM 19.2 24.6 29.6 35.7 42.1 29.5

In %


36

The average variable pay at Clerical Cadre and

Junior Management level is expected to be lower

than the overall average variable pay at 20.2% in

this sector

The average variable pay at Senior and Top Management levels is


(18.5%)

The Clerical Cadre and all the Management

levels reported an increase in average


The Middle Management level reported minimum increase in average



BFSI Average Annual Variable Pay FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 10.1 15.2 19.6 30.7 35.8 19.8

FY 2014-15 10.4 15.8 20.1 31.4 36.2 20.2


14.2

18.6 20.2

26.5

29.5

13.6

17.9 19.3

24.9

27.8

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0


FY 2014-15 FY 2013-14

In %

37




increased to 10.4%



variable pay


across levels; the increase is highest at the Top Management level




levels


BFSI Key Benefits



< 3 Lacs - - - - -

3 - 5 Lacs - 33.3 33.3 11.1 -

5 - 8 Lacs - 27.8 50.0 22.2 -

8 -12 Lacs - - 16.7 50.0 5.6

> 12 Lacs - - - 16.7 94.4

N/A 100.0 38.9 - - -


Leave Encashment


< 5000 - 22.2 22.2 11.1 -

5000 - 8000 - 33.3 44.4 27.8 -

8000 -12000 - - 22.2 33.3 16.7

12000 - 15000 - - 11.1 16.7 22.2

> 15000 - - - 11.1 38.9

On Actuals - - - - 22.2

N/A 100.0 44.4 - - -



Provided by - - 38.9% 77.8% 88.9%

Average

Amount per

Month

- - 8000-12000 8000-14000 10000-16000



< 5000 - - - - -

5000 - 10000 - 16.7 38.9 27.8 -

10000 - 15000 - 33.3 33.3 44.4 22.2

> 15000 - 11.1 27.8 16.7 22.2

On Actuals - - - 11.1 55.6

N/A 100.0 38.9 - - -

16.7%

38.9%

27.7%

16.7% Employee only

Employee & spouse





(7)

(3) (3)

(5)

38


BFSI Key HR Challenges and Managing Attrition

Developing

Potential

Leaders

Compensation

Structuring

Attracting Talent


29 Clerical/

JM/

MM/

SM/

TM/

31

36

42

46

Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent




Relocation etc.)




Profit Sharing


Top three Methods to Reward and Manage Critical

Talent

Higher Salaries



HR

Challenges

39

Chemical


Chemical Executive Summary: Key Findings





average is 12.2%. Highest attrition rate is observed for


Organizations attribute Better Career Prospects, Better

Pay Opportunities and Personal Reasons as the main


Career Management, Developing Potential Leaders and

Retaining and Rewarding the Critical Talent are the key

HR challenges faced by this sector




Employee

Strength

18.2%

18.2%

63.6%

<100 Crore

100-300 Crore

300-500 Crore

500-1000 Crore

>1000 Crore

Employee

Strength

18.2%

54.5%

27.3%

< 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

01

02

03

04

05

Annual

Revenue

Employee

Strength

41


Chemical Annual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 7.5 8.9 10.9 12.2 13.9 10.7

JM 7.9 9.4 11.4 12.9 14.6 11.3

MM 8.1 10.1 11.7 13.2 15.1 11.5

SM 8.6 9.9 11.8 13.6 15.5 11.9

TM 8.8 10.6 12.7 14.3 16.2 12.6

In %


10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.4 11.3 10.6 10.7

9.8 11.2 11.9

9.3 8.7 9.6 11.8

8.9

10.6 10.0 9.6

11.5 10.7 10.8 9.9

11.4 12.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.9 10.8 11.1

10.3

11.7 12.6

9.7 9.4

10.2

12.6

9.3

11.3 10.8 10.3

12.6 11.7 11.8

10.7

12.9 13.3

10.5 9.9

10.4

13.2

9.5

OverallIndustry


TM

SM

MM

JM

CL


42

The average increment at Clerical Cadre, Junior

and Middle Management levels is expected to be lower

than the overall average increment at 11.6% in

this sector

The average increment at Top, Senior and Middle Management levels is

significantly higher than the overall industry average increment

(10.3%)


levels reported increase in average increments

compared to the overall industry

The Clerical Cadre level reported

minimum increase in average increments



Chemical Average Annual Increments FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 7.9 9.4 11.9 13.7 15.6 11.9

FY 2014-15 7.5 9.2 11.6 13.4 15.3 11.6


10.7 11.3 11.5

11.9 12.6

11.1 11.5

11.9 12.1

12.9

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0


FY 2014-15 FY 2013-14

In %

43

Higher increments across this sector is expected to be around the 15% mark. However, on the lower




the 10th percentile increment

Average annual increment percentages have reduced marginally across levels; the reduction is highest at

the Clerical Cadre level


given increments to all their employees in the



Chemical Annual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 9.6 11.1 13.0 15.8 18.1 13.1

JM 11.7 13.7 16.1 19.6 22.7 16.3

MM 13.0 15.2 17.8 23.2 29.0 17.9

SM 16.2 19.3 21.9 27.7 33.1 21.7

TM 17.1 21.3 25.8 31.2 36.2 25.6

In %


12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.7 18.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7 16.4 16.4

18.9 17.4 20.2

17.9 19.7

18.1 17.3

18.7 18.6 17.3 16.7

17.2 18.6 18.7

22.4 21.6

26.5

21.7 24.3

22.9 20.9

23.7 23.2 20.1 20.2

21.3 23.4 23.2

24.2 25.3

29.5

25.6

27.6 27.2

25.2

27.4 26.9

23.6 23.2 25.8

27.1 26.8

OverallIndustry


TM

SM

MM

JM

CL


44

The average variable pay at Clerical Cadre

and Junior Management level is expected to be lower than the overall


The average variable pay at Senior and Top Management levels is significantly higher

than the overall industry average

variable pay (18.5%)

The Clerical Cadre and Top Management level

reported increase in average variable pay


The Middle Management level reported maximum

decrease in average variable pay compared to



Chemical Average Annual Variable Pay FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 8.6 12.6 17.2 26.6 31.1 17.4

FY 2014-15 9.4 13.4 17.7 27.4 32.8 17.8


13.1

16.3

17.9

21.7

25.6

12.6

14.6 15.7

19.8

23.9

0.0

5.0

10.0

15.0

20.0

25.0

30.0


FY 2014-15 FY 2013-14

In %

45

Higher variable pay across this sector is expected to be around the 33% mark. However, on the lower

side, the variable pay has also increased to 9.4%


significant increase has been observed in the

90th percentile variable pay


across levels; the increase is highest at the Middle

Management level


given variable pay to all their employees in the range of 9.4-32.8%,

across all levels


Chemical Key Benefits



< 3 Lacs - - - - -

3 - 5 Lacs - 18.2 45.5 9.1 -

5 - 8 Lacs - 18.2 36.4 27.3 -

8 -12 Lacs - - 18.2 45.5 9.1

> 12 Lacs - - - 18.2 90.9

N/A 100.0 63.6 - - -


Leave Encashment


< 5000 - 18.2 18.2 9.1 -

5000 - 8000 - 27.3 45.5 36.4 -

8000 -12000 - - 27.3 27.3 9.1

12000 - 15000 - - 9.1 18.2 18.2

> 15000 - - - 9.1 45.5

On Actuals - - - - 27.3

N/A 100.0 54.5 - - -



Provided by - - 27.3% 63.6% 90.9%

Average

Amount per

Month

- - 8000-12000 9000-14000 10000-18000



< 5000 - - - - -

5000 - 10000 - 45.5 54.5 27.3 -

10000 - 15000 - 18.2 45.5 45.5 27.3

> 15000 - - - 18.2 36.4

On Actuals - - - 9.1 36.4

N/A 100.0 36.4 - - -

18.2%

45.5%

27.3%

9.0% Employee only

Employee & spouse





(2) (1)

(3)

(5)

46


Chemical Key HR Challenges and Managing Attrition

Developing

Potential

Leaders

Career

Management

Attracting Talent


33 Clerical/

JM/

MM/

SM/

TM/

36

40

46

50

Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent





Relocation etc.)



Development Programs for High Potentials and Top

Performers



Talent

Higher Salaries



HR

Challenges

47

Consumer

Business


Consumer Business Executive Summary: Key Findings








Reasons, Better Pay Opportunities as the main reasons

for attrition

Developing Potential Leaders, Compensation Structuring,

Retaining and Rewarding Critical Talent are the key HR

challenges faced by this sector




Employee

Strength Employee

Strength

18.2%

18.2%

63.6%

<100 Crore

100-300 Crore

300-500 Crore

500-1000 Crore

>1000 Crore

18.2%

54.5%

27.3%

< 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

01

02

03

04

05

Annual

Revenue

Employee

Strength

49


Consumer Business Annual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 7.4 8.6 10.2 11.5 13.2 10.4

JM 7.8 8.9 10.5 12.4 13.8 10.6

MM 7.9 9.2 10.8 12.3 14.1 10.7

SM 8.2 9.4 10.9 12.6 14.7 10.8

TM 8.4 10.2 11.5 13.3 15.4 11.7

In %


10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.4 11.3 10.6 10.7

9.8 11.2 11.9

9.3 8.7 9.6 11.8

8.9

10.6 10.0 9.6

11.5 10.7 10.8 9.9

11.4 12.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.9 10.8 11.1

10.3

11.7 12.6

9.7 9.4

10.2

12.6

9.3

11.3 10.8 10.3

12.6 11.7 11.8

10.7

12.9 13.3

10.5 9.9

10.4

13.2

9.5

OverallIndustry


TM

SM

MM

JM

CL


50

The average increment at Clerical Cadre level is expected to be lower

than the overall average increment at 10.6% in

this sector

The average increment at Top Management level is significantly higher than

the overall industry average increment (10.3%)




The Middle Management level reported minimum

increase in average increments compared to



Consumer Business Average Annual Increments FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 7.5 9.2 10.8 12.7 15.5 10.9

FY 2014-15 7.3 8.8 10.7 12.6 15.2 10.6


10.4

10.6 10.7

10.8

11.7

10.7 10.8 10.8

11.1

11.9

9.5

10.0

10.5

11.0

11.5

12.0

12.5


FY 2014-15 FY 2013-14

In %

51



However, on the lower side, the increments have also reduced to

7.3%

In comparison to other percentiles, a significant

reduction has been observed in the 25th percentile increment



reduction is lowest at the Middle Management

level






12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.7 18.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7 16.4 16.4

18.9 17.4 20.2

17.9 19.7

18.1 17.3

18.7 18.6 17.3 16.7

17.2 18.6 18.7

22.4 21.6

26.5

21.7 24.3

22.9 20.9

23.7 23.2 20.1 20.2

21.3 23.4 23.2

24.2 25.3

29.5

25.6

27.6 27.2

25.2

27.4 26.9

23.6 23.2 25.8

27.1 26.8

OverallIndustry


TM

SM

MM

JM

CL

Consumer Business Annual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 10.4 12.3 13.9 17.6 20.9 14.1

JM 13.7 16.3 18.4 23.3 27.7 18.2

MM 15.4 17.8 19.8 25.3 30.4 19.7

SM 17.6 20.7 24.2 29.2 34.6 24.3

TM 18.6 23.4 27.7 33.7 39.3 27.6

In %


52






(18.5%)


levels reported increase in average


The Top Management level reported maximum



Consumer Business Average Annual Variable Pay FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 9.2 15.3 19.2 28.1 38.4 19.4

FY 2014-15 10.1 16.0 19.5 28.8 39.0 19.8


14.1

18.2 19.7

24.3

27.6

13.4

16.6 17.9

22.4

25.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0


FY 2014-15 FY 2013-14

In %

53


expected to be around the 39% mark. However, on

the lower side, the variable pay has also

increased to 10.1%


increase has been observed in the 10th

percentile variable pay


across levels; the increase is highest at the Senior and Top Management

levels



across all levels


Consumer Business Key Benefits



< 3 Lacs - - - - -

3 - 5 Lacs - 20.0 30.0 - -

5 - 8 Lacs - 30.0 50.0 20.0 -

8 -12 Lacs - - 20.0 60.0 10.0

> 12 Lacs - - - 20.0 90.0

N/A 100.0 50.0 - - -


Leave Encashment


< 5000 - 20.0 20.0 10.0 -

5000 - 8000 - 30.0 50.0 30.0 -

8000 -12000 - - 20.0 30.0 10.0

12000 - 15000 - - 10.0 20.0 10.0

> 15000 - - - 10.0 50.0

On Actuals - - - - 30.0

N/A 100.0 50.0 - - -



Provided by - - 50.0% 60.0% 100.0%

Average

Amount per

Month

- - 8000-12000 8000-14000 10000-18000



< 5000 - - - - -

5000 - 10000 - 60.0 60.0 30.0 -

10000 - 15000 - 20.0 40.0 40.0 20.0

> 15000 - - - 20.0 40.0

On Actuals - - - 10.0 40.0

N/A 100.0 20.0 - - -

20.0%

40.0%

30.0%

10.0% Employee only

Employee & spouse





(2) (1)

(3)

(4)

54


Consumer Business Key HR Challenges and Managing Attrition

Developing

Potential

Leaders

Developing

Potential

Leaders

Attracting Talent


32 Clerical/

JM/

MM/

SM/

TM/

32

38

46

46

Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent




Relocation etc.)




Project Incentives



Talent

Higher Salaries



HR

Challenges

55

Engineering &

Manufacturing


Engineering & Manufacturing Executive Summary: Key Findings







Organizations attribute Better Career Prospects,

Personal Reasons and Better Utilization of Current Skills

as the main reasons for attrition

Career Management, Attraction and Developing Potential

Leaders are the key HR challenges faced by this sector




Employee

Strength

Employee

Strength

6.3%

12.5%

25.0% 56.3%

<100 Crore

100-300 Crore

300-500 Crore

500-1000 Crore

>1000 Crore

15.6%

28.1%

34.4%

6.3%

12.5%

3.1%

< 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

01

02

03

04

05

Annual

Revenue

Employee

Strength

57


10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.4 11.3 10.6 10.7

9.8 11.2 11.9

9.3 8.7 9.6 11.8

8.9

10.6 10.0 9.6

11.5 10.7 10.8 9.9

11.4 12.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.9 10.8 11.1

10.3

11.7 12.6

9.7 9.4

10.2

12.6

9.3

11.3 10.8 10.3

12.6 11.7 11.8

10.7

12.9 13.3

10.5 9.9

10.4

13.2

9.5

OverallIndustry


TM

SM

MM

JM

CL


Engineering & Manufacturing Annual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 7.5 8.8 10.4 11.7 13.4 10.5

JM 7.9 9.5 10.6 12.5 13.9 10.7

MM 7.7 9.1 10.9 12.8 14.2 10.8

SM 8.3 9.6 11.2 12.7 14.6 11.1

TM 8.5 9.1 11.7 13.5 15.7 11.8

In %


58


and Senior Management levels is expected to be lower than the overall average increment at 10.9% in this sector

The average increment at Top and Senior

Management levels is significantly higher than

the overall industry average increment

(10.3%)

The Clerical Cadre and all the Management levels

reported increase in average increments


The Middle Management level reported minimum




Engineering & Manufacturing Average Annual Increments FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 7.7 9.2 11.3 12.8 15.6 11.2

FY 2014-15 7.4 8.8 11.0 12.6 14.9 10.9


10.5

10.7 10.8

11.1

11.8

10.8 10.9

11.0

11.4

11.9

9.5

10.0

10.5

11.0

11.5

12.0

12.5


FY 2014-15 FY 2013-14

In %

59




significant reduction has been observed

in the 90th percentile increment


have reduced marginally across

levels; the reduction is lowest at the Top Management level

Majority of the organizations have given increments to all their employees in the range of 7.4-14.9%, across all

levels



12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.7 18.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7 16.4 16.4

18.9 17.4 20.2

17.9 19.7

18.1 17.3

18.7 18.6 17.3 16.7

17.2 18.6 18.7

22.4 21.6

26.5

21.7 24.3

22.9 20.9

23.7 23.2 20.1 20.2

21.3 23.4 23.2

24.2 25.3

29.5

25.6

27.6 27.2

25.2

27.4 26.9

23.6 23.2 25.8

27.1 26.8

OverallIndustry


TM

SM

MM

JM

CL

Engineering & Manufacturing Annual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 9.8 11.7 13.3 16.0 18.4 13.4

JM 12.0 14.2 16.0 19.7 22.9 16.2

MM 13.2 15.9 18.3 24.0 29.4 18.1

SM 16.4 19.8 22.8 28.6 33.9 22.9

TM 17.2 22.2 27.0 31.8 36.4 27.2

In %


60






(18.5%)

The Clerical Cadre, Top and Senior

Management levels reported increase in

average variable pay compared to the overall industry




Engineering & Manufacturing Average Annual Variable Pay FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 9.1 13.2 17.5 26.2 34.8 17.8

FY 2014-15 9.7 14.0 18.0 28.4 36.1 18.2


13.4

16.2

18.1

22.9

27.2

11.6

14.3 15.5

21.2

24.4

0.0

5.0

10.0

15.0

20.0

25.0

30.0


FY 2014-15 FY 2013-14

In %

61



However, on the lower side, the variable pay has also increased to

9.7%








across all levels


Engineering & Manufacturing Key Benefits



< 3 Lacs - - - - -

3 - 5 Lacs - 31.3 34.4 18.8 -

5 - 8 Lacs - 34.4 40.6 25.0 -

8 -12 Lacs - - 25.0 37.5 6.3

> 12 Lacs - - - 18.8 30.0

N/A 100.0 34.4 - - -


Leave Encashment


< 5000 - 28.1 25.0 15.6 -

5000 - 8000 - 34.4 34.4 25.0 -

8000 -12000 - - 25.0 28.1 21.9

12000 - 15000 - - 15.6 18.8 25.0

> 15000 - - - 12.5 34.4

On Actuals - - - - 18.8

N/A 100.0 37.5 - - -



Provided by - - 43.8% 62.5% 93.8%

Average

Amount per

Month

- - 8000-12000 8000-14000 10000-16000



< 5000 - - - - -

5000 - 10000 - 18.8 40.6 25.0 -

10000 - 15000 - 31.3 34.4 34.4 31.3

> 15000 - 18.8 25.0 21.9 31.3

On Actuals - - - 18.8 37.5

N/A 100.0 31.3 - - -

25.0%

31.3%

28.1%

15.6% Employee only

Employee & spouse





(8)

(5)

(9)

(10)

62


Engineering & Manufacturing Key HR Challenges and Managing Attrition

Developing

Potential

Leaders

Career

Management

Attracting Talent


34 Clerical/

JM/

MM/

SM/

TM/

34

40

45

48

Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent




Relocation etc.)





Performers



Talent




HR

Challenges

63

Energy &

Natural

Resources


Energy & Natural Resources Executive Summary: Key Findings







Organizations attribute Better Career Prospects, Better

Pay Opportunities and Better Utilization of Current Skills

as the main reasons for attrition

. Compensation Structuring, Performance Management

and Employee Engagement are the key HR challenges

faced by this sector



lower than the previous FY 2013-14 (10%)

Employee

Strength

12.5%

12.5%

62.5%

<100 Crore

100-300 Crore

300-500 Crore

500-1000 Crore

>1000 Crore

Employee

Strength

37.5%

12.5%

50.0%

< 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

01

02

03

04

05

Annual

Revenue

Employee

Strength

65



10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.4 11.3 10.6 10.7

9.8 11.2 11.9

9.3 8.7 9.6 11.8

8.9

10.6 10.0 9.6

11.5 10.7 10.8 9.9

11.4 12.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.9 10.8 11.1

10.3

11.7 12.6

9.7 9.4

10.2

12.6

9.3

11.3 10.8 10.3

12.6 11.7 11.8

10.7

12.9 13.3

10.5 9.9

10.4

13.2

9.5

OverallIndustry


TM

SM

MM

JM

CL

Energy & Natural Resources Annual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 7.2 8.5 9.4 11.6 13.3 9.2

JM 7.5 8.4 9.6 11.7 13.4 9.8

MM 7.4 8.4 9.8 11.5 13.6 9.9

SM 7.7 8.8 10.2 12.0 14.2 10.3

TM 8.0 9.5 10.5 12.6 15.0 10.7

In %


66

The average increment at Clerical Cadre is expected to be lower


9.7% in this sector

The average increment at Top Management level is higher than the overall industry average increment

(10.3%)


levels reported decrease in average


The Senior Management level reported minimum




Energy & Natural Resources Average Annual Increments FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 7.5 8.8 10.2 12.3 15.2 10.0

FY 2014-15 7.2 8.3 9.8 12.1 14.5 9.7


9.2

9.8 9.9

10.3

10.7

9.4

10.1 10.1

10.6

10.9

8.0

8.5

9.0

9.5

10.0

10.5

11.0


FY 2014-15 FY 2013-14

In %

67






Average annual increment percentages have reduced marginally across levels; the reduction is highest at

the Junior and Senior Management levels






12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.7 18.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7 16.4 16.4

18.9 17.4 20.2

17.9 19.7

18.1 17.3

18.7 18.6 17.3 16.7

17.2 18.6 18.7

22.4 21.6

26.5

21.7 24.3

22.9 20.9

23.7 23.2 20.1 20.2

21.3 23.4 23.2

24.2 25.3

29.5

25.6

27.6 27.2

25.2

27.4 26.9

23.6 23.2 25.8

27.1 26.8

OverallIndustry


TM

SM

MM

JM

CL

Energy & Natural Resources Annual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 9.1 10.7 12.1 14.4 16.4 12.2

JM 11.0 12.7 14.8 18.5 21.8 14.7

MM 11.9 14.8 17.4 22.3 26.8 17.3

SM 14.2 17.7 20.8 26.8 32.8 20.9

TM 15.6 20.7 25.4 31.0 36.3 25.2

In %


68

The average variable pay at Clerical Cadre,

Junior and Middle Management levels is expected to be lower


at 17.4% in this sector

The average variable pay at Senior and Top


the overall industry average variable pay

(18.5%)

The Clerical Cadre and Top Management level

reported increase in average variable pay


The Junior Management level reported maximum

decrease in average variable pay compared to



Energy & Natural Resources Average Annual Variable Pay FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 8.4 12.1 17.0 25.7 30.6 17.2

FY 2014-15 8.9 12.5 17.2 26.5 32.0 17.4


12.2

14.7

17.3

20.9

25.2

10.5

12.8 14.3

18.6

22.9

0.0

5.0

10.0

15.0

20.0

25.0

30.0


FY 2014-15 FY 2013-14

In %

69




increased to 8.9%



variable pay


across levels; the increase is highest at the

Middle Management level




levels


Energy & Natural Resources Key Benefits



< 3 Lacs - - - - -

3 - 5 Lacs - 25.0 37.5 - -

5 - 8 Lacs - 25.0 37.5 25.0 -

8 -12 Lacs - - 25.0 50.0 12.5

> 12 Lacs - - - 25.0 87.5

N/A 100.0 50.0 - - -


Leave Encashment


< 5000 - 25.0 12.5 12.5 -

5000 - 8000 - 25.0 50.0 25.0 -

8000 -12000 - - 25.0 25.0 12.5

12000 - 15000 - - 12.5 25.0 12.5

> 15000 - - - 12.5 37.5

On Actuals - - - - 37.5

N/A 100.0 50.0 - - -



Provided by - - 62.5% 75.0% 100%

Average

Amount per

Month

- - 8000-12000 8000-14000 10000-

18000



< 5000 - - - - -

5000 - 10000 - 50.0 50.0 37.5 -

10000 - 15000 - 25.0 50.0 25.0 25.0

> 15000 - - - 25.0 37.5

On Actuals - - - 12.5 37.5

N/A 100.0 25.0 - - -

25.0%

37.5%

25.0%

12.5% Employee only

Employee & spouse


100% companies allow leave encashment

companies allow leave encashment during tenure

companies allow leave encashment only after separation

37.5%

62.5%

In %

In % In %

(2) (1)

(2)

(3)

70


Energy & Natural Resources Key HR Challenges and Managing Attrition

Developing

Potential

Leaders

Compensation

Structuring

Attracting Talent


30 Clerical/

JM/

MM/

SM/

TM/

31

39

45

48

Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent








Project Incentives


Talent



Higher Salaries

HR

Challenges

71

Hi-Tech


Hi-Tech Executive Summary: Key Findings

Employee

Strength

15.4%

11.5%

11.5%

19.2%

42.3%

<100 Crore

100-300 Crore

300-500 Crore

500-1000 Crore

>1000 Crore

15.4%

15.4%

11.5%

19.2%

15.4%

23.1% < 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

Employee

Strength








Pursuing Further Studies and Better Utilization of Current

Skills as the main reasons for attrition

Career Management, Retaining and Rewarding the

Critical Talent and Employee Engagement are the key HR





01

02

03

04

05

Annual

Revenue

Employee

Strength

73


Hi-Tech Annual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 7.6 8.9 10.8 12.4 13.7 10.7

JM 7.8 9.3 11.3 12.7 14.4 11.2

MM 7.8 9.5 11.6 13.2 14.9 11.4

SM 8.4 10.3 11.9 13.5 15.4 11.7

TM 8.7 10.6 12.8 14.2 16.0 12.9

In % Comparison of Level-wise Average Increments Across Sectors

10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.4 11.3 10.6 10.7

9.8 11.2 11.9

9.3 8.7 9.6 11.8

8.9

10.6 10.0 9.6

11.5 10.7 10.8 9.9

11.4 12.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.9 10.8 11.1

10.3

11.7 12.6

9.7 9.4

10.2

12.6

9.3

11.3 10.8 10.3

12.6 11.7 11.8

10.7

12.9 13.3

10.5 9.9

10.4

13.2

9.5

OverallIndustry


TM

SM

MM

JM

CL


74

The average increment at Clerical Cadre, Junior and Middle

Management levels is expected to be lower

than the overall average increment at 11.5% in this sector

The average increment at Clerical Cadre and

all Management level is higher than the overall

industry average increment (10.3%)








Hi-Tech Average Annual Increments FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 7.8 9.3 11.8 13.8 15.6 11.7

FY 2014-15 7.4 9.1 11.6 13.6 15.4 11.5


10.7 11.2 11.4

11.7

12.9 10.9 11.5 11.6

12.1

13.3

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0


FY 2014-15 FY 2013-14

In %

75








reduction is highest at the Top and Senior Management levels



levels



12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.7 18.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7 16.4 16.4

18.9 17.4 20.2

17.9 19.7

18.1 17.3

18.7 18.6 17.3 16.7

17.2 18.6 18.7

22.4 21.6

26.5

21.7 24.3

22.9 20.9

23.7 23.2 20.1 20.2

21.3 23.4 23.2

24.2 25.3

29.5

25.6

27.6 27.2

25.2

27.4 26.9

23.6 23.2 25.8

27.1 26.8

OverallIndustry


TM

SM

MM

JM

CL

Hi-Tech Annual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 10.2 11.2 12.6 16.2 20.1 12.5

JM 13.4 15.9 18.2 21.1 24.4 18.1

MM 14.9 16.7 18.9 24.5 30.4 18.7

SM 17.2 20.2 23.6 28.7 34.2 23.7

TM 18.1 22.8 27.2 32.9 38.4 27.4

In %


76

The average variable pay at Clerical Cadre,

Junior and Middle Management levels is expected to be lower


this sector

The average variable pay at Senior and Top Management

levels is significantly higher



The Middle Management level reported decrease in

average variable pay compared to the overall

industry


increase in average variable pay compared to



Hi-Tech Average Annual Variable Pay FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 9.0 14.7 18.5 27.2 36.7 18.6

FY 2014-15 10.1 15.6 18.8 28.5 38.1 18.8


12.5

18.1 18.7

23.7

27.4

12.1

15.5 16.8

20.6

25.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0


FY 2014-15 FY 2013-14

In %

77




increased to 10.1%



variable pay







levels


Hi-Tech Key Benefits



< 3 Lacs - - - - -

3 - 5 Lacs - 30.8 34.6 15.4 -

5 - 8 Lacs - 34.6 42.3 23.1 -

8 -12 Lacs - - 23.1 42.3 3.8

> 12 Lacs - - - 19.2 96.2

N/A 100.0 34.6 - - -


Leave Encashment


< 5000 - 26.9 23.1 15.4

5000 - 8000 - 34.6 38.5 26.9

8000 -12000 - - 23.1 30.8 19.2

12000 - 15000 - - 15.4 15.4 23.1

> 15000 - - - 11.5 34.6

On Actuals - - - - 23.1

N/A 100.0 38.5 - - -



Provided by - - 42.3% 69.2% 84.6%

Average

Amount per

Month

- - 8000-12000 8000-14000 10000-18000



< 5000 - - - - -

5000 - 10000 - 19.2 42.3 26.9

10000 - 15000 - 30.8 34.6 38.5 30.8

> 15000 - 15.4 23.1 19.2 30.8

On Actuals - - - 15.4 38.5

N/A 100.0 34.6 - - -

19.2%

38.5%

26.9%

15.4% Employee only

Employee & spouse





(5) (4)

(7)

(10)

78


Hi-Tech Key HR Challenges and Managing Attrition

Developing

Potential

Leaders

Career

Management

Attracting Talent


29 Clerical/

JM/

MM/

SM/

TM/

31

35

40

46

Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent



Pursue Further Studies




Retention Bonus

Development Programs for High Potential s and Top

Performers


Talent

Higher Salaries



HR

Challenges

79

IT enabled

Services


ITeS Executive Summary: Key Findings

Employee

Strength








Personal Reasons and Better Pay Opportunities as the


Developing Potential Leaders, Career Management and






18.2%

27.3%

4.5%

18.2%

31.8% <100 Crore

100-300 Crore

300-500 Crore

500-1000 Crore

>1000 Crore

Employee

Strength

13.6%

18.2%

13.6%

4.5%

22.7%

27.3%

< 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

01

02

03

04

05

Annual

Revenue

Employee

Strength

81


ITeS Annual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 8.1 9.8 11.3 12.6 13.8 11.4

JM 8.1 9.8 11.8 13.4 14.9 11.9

MM 8.3 10.4 12.2 13.8 15.4 12.4

SM 8.8 10.8 12.5 14.2 15.9 12.6

TM 9.1 11.3 13.1 14.9 16.7 13.3


10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.4 11.3 10.6 10.7

9.8 11.2 11.9

9.3 8.7 9.6 11.8

8.9

10.6 10.0 9.6

11.5 10.7 10.8 9.9

11.4 12.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.9 10.8 11.1

10.3

11.7 12.6

9.7 9.4

10.2

12.6

9.3

11.3 10.8 10.3

12.6 11.7 11.8

10.7

12.9 13.3

10.5 9.9

10.4

13.2

9.5

OverallIndustry


TM

SM

MM

JM

CL


82

The average increment at Clerical Cadre,

Junior Management level is expected to be lower than the overall average increment at 12.0% in this sector

The average increment at Clerical Cadre and all Management level

is higher than the overall industry

average increment (10.3%)


levels reported increase in average


The Senior Management level reported maximum




ITeS Average Annual Increments FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 8.4 9.6 12.2 14.3 16.8 12.3

FY 2014-15 7.9 9.4 11.9 14.0 16.5 12.0


11.4

11.9

12.4 12.6

13.3

11.6

12.2

12.6 12.8

13.6

10.0

10.5

11.0

11.5

12.0

12.5

13.0

13.5

14.0


FY 2014-15 FY 2013-14

In %

83



on the lower side, the increments have also

reduced to 7.9%






reduction is highest at the Top and Junior Management levels



levels


ITeS Annual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 10.1 11.3 12.2 15.4 18.9 12.1

JM 12.8 14.7 16.1 20.2 23.9 16.3

MM 13.6 16.4 18.7 24.2 30.1 18.6

SM 16.6 20.0 23.1 28.4 33.8 23.2

TM 17.3 22.3 26.8 32.4 37.5 26.9


12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.7 18.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7 16.4 16.4

18.9 17.4 20.2

17.9 19.7

18.1 17.3

18.7 18.6 17.3 16.7

17.2 18.6 18.7

22.4 21.6

26.5

21.7 24.3

22.9 20.9

23.7 23.2 20.1 20.2

21.3 23.4 23.2

24.2 25.3

29.5

25.6

27.6 27.2

25.2

27.4 26.9

23.6 23.2 25.8

27.1 26.8

OverallIndustry


TM

SM

MM

JM

CL


In %

84


and Junior Management level is expected to be lower


at 18.5% in this sector




The Middle and Junior Management



The Top Management level reported

maximum increase in average variable pay



ITeS Average Annual Variable Pay FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 8.8 13.8 18.1 26.8 35.4 18.2

FY 2014-15 10.0 14.5 18.4 28.2 37.1 18.5


12.1

16.3

18.6

23.2

26.9

10.3

13.5

16.6

19.3

24.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0


FY 2014-15 FY 2013-14

In %

85




increased to 10.0%



variable pay


across levels; the increase is highest at the Senior Management level




levels


ITeS Key Benefits



< 3 Lacs - - - - -

3 - 5 Lacs - 31.8 36.4 13.6 -

5 - 8 Lacs - 31.8 45.5 22.7 -

8 -12 Lacs - - 18.2 45.5 4.5

> 12 Lacs - - - 18.2 95.5

N/A 100.0 36.4 - - -



< 5000 - 22.7 22.7 13.6 -

5000 - 8000 - 31.8 40.9 27.3 -

8000 -12000 - - 22.7 27.3 18.2

12000 - 15000 - - 13.6 18.2 22.7

> 15000 - - - 13.6 36.4

On Actuals - - - - 22.7

N/A 100.0 45.5 - -



Provided by - - 40.9% 72.7% 90.9%

Average

Amount per

Month

- - 8000-12000 8000-14000 10000-16000



< 5000 - - - - -

5000 - 10000 - 18.2 40.9 27.3 -

10000 - 15000 - 31.8 36.4 40.9 27.3

> 15000 - 13.6 22.7 18.2 27.3

On Actuals - - - 13.6 45.5

N/A 100.0 36.4 - - -

18.2%

40.9%

27.3%

13.6% Employee only

Employee & spouse





Leave Encashment

(4) (3)

(6)

(9)

86


ITeS Key HR Challenges and Managing Attrition

Developing

Potential

Leaders

Developing

Potential

Leaders

Attracting Talent


26 Clerical/

JM/

MM/

SM/

TM/

29

33

39

45

Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent




Relocation etc.)






Performers

Top 3 Methods to Manage and Reward Critical Talent




HR

Challenges

87

Infrastructure &

Real Estate


Infrastructure & Real Estate Executive Summary: Key Findings

Employee

Strength





average is 13.2%. Highest attrition rate for the Clerical

Cadre at 15.6%

Organizations attribute Better Pay Opportunities, Better

Career Prospects and Personal Reasons as the main


Developing Potential Leaders, Performance

Management, and Retaining and Rewarding the Critical

Talent are the key HR challenges faced by this sector




12.5%

62.5%

25.0% <100 Crore

100-300 Crore

300-500 Crore

500-1000 Crore

>1000 Crore

Employee

Strength

83.3%

16.7% < 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

01

02

03

04

05

Annual

Revenue

Employee

Strength

89


Infrastructure & Real Estate Annual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 7.0 8.3 9.0 10.7 12.8 9.2

JM 7.3 8.4 9.1 11.4 13.2 9.3

MM 7.5 8.7 9.4 11.2 13.4 9.5

SM 7.6 8.5 9.8 11.6 13.8 9.7

TM 7.8 9.0 10.3 12.4 14.9 10.5


10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.4 11.3 10.6 10.7

9.8 11.2 11.9

9.3 8.7 9.6 11.8

8.9

10.6 10.0 9.6

11.5 10.7 10.8 9.9

11.4 12.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.9 10.8 11.1

10.3

11.7 12.6

9.7 9.4

10.2

12.6

9.3

11.3 10.8 10.3

12.6 11.7 11.8

10.7

12.9 13.3

10.5 9.9

10.4

13.2

9.5

OverallIndustry


TM

SM

MM

JM

CL


90

The average increment at Clerical Cadre,

Junior Management level is expected to be lower than the overall average increment at

9.4% in this sector

The average increment at Clerical Cadre and all

Management level (except Top Management) is

lower than the overall industry average increment (10.3%)




The Middle Management level reported maximum decrease in average



Infrastructure & Real Estate Average Annual Increments FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 7.3 8.6 9.7 11.9 15.2 9.7

FY 2014-15 7.0 8.3 9.2 11.5 14.9 9.4


9.2 9.3

9.5

9.7

10.5

9.4

9.6

9.8

10.1

10.7

8.0

8.5

9.0

9.5

10.0

10.5

11.0


FY 2014-15 FY 2013-14

In %

91








reduction is highest at the Senior Management

level



levels


Infrastructure & Real Estate Annual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 8.4 10.3 11.9 14.3 16.2 11.7

JM 10.5 12.5 14.2 17.4 21.0 14.1

MM 12.8 14.8 17.1 21.6 25.9 17.3

SM 15.0 17.9 20.2 26.4 32.2 20.1

TM 15.8 19.8 23.8 29.5 35.5 23.6

In %


12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.7 18.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7 16.4 16.4

18.9 17.4 20.2

17.9 19.7

18.1 17.3

18.7 18.6 17.3 16.7

17.2 18.6 18.7

22.4 21.6

26.5

21.7 24.3

22.9 20.9

23.7 23.2 20.1 20.2

21.3 23.4 23.2

24.2 25.3

29.5

25.6

27.6 27.2

25.2

27.4 26.9

23.6 23.2 25.8

27.1 26.8

OverallIndustry


TM

SM

MM

JM

CL


92


and Junior Management level is expected to be lower than the overall





The Clerical Cadre and all the

Management levels reported decrease in average variable pay


The Junior Management level reported maximum decrease in average



Infrastructure & Real Estate Average Annual Variable Pay FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 7.9 11.6 16.6 24.7 30.1 16.8

FY 2014-15 8.3 12.5 17.0 26.1 32.2 17.1


11.7

14.1

17.3

20.1

23.6

9.9

12.5

14.6

18.4

20.8

0.0

5.0

10.0

15.0

20.0

25.0


FY 2014-15 FY 2013-14

In %

93




increased to 8.3%



variable pay






levels


Infrastructure & Real Estate Key Benefits



< 3 Lacs - - - - -

3 - 5 Lacs - 12.5 25.0 - -

5 - 8 Lacs - 25.0 50.0 25.0

8 -12 Lacs - - 25.0 50.0 12.5

> 12 Lacs - - - 25.0 87.5

N/A 100.0 50.0 - - -



< 5000 - 25.0 12.5 12.5 -

5000 - 8000 - 25.0 37.5 25.0 12.5

8000 -12000 - - 37.5 25.0 12.5

12000 - 15000 - - 12.5 12.5 37.5

> 15000 - - - - 37.5

On Actuals - - - - -

N/A 100.0 50.0 - - -



Provided by - - 50.0% 62.5% 100.0%

Average

Amount per

Month

- - 8000-12000 8000-12000 10000-16000



< 5000 - - - - -

5000 - 10000 - 50.0 50.0 25.0 -

10000 - 15000 - 25.0 50.0 37.5 25.0

> 15000 - - - 25.0 37.5

On Actuals - - - 12.5 37.5

N/A 100.0 25.0 - - -

25.0%

37.5%

25.0%

12.5% Employee only

Employee & spouse


companies allow leave encashment



Leave Encashment

100.0%

(2)

(1)

(2)

(3)

94


Infrastructure & Real Estate Key HR Challenges and Managing Attrition

Developing

Potential

Leaders

Developing

Potential

Leaders

Attracting Talent


33 Clerical/

JM/

MM/

SM/

TM/

35

39

44

49

Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent





Relocation etc.)




Retention Bonus


Talent


Higher Salaries


HR

Challenges

95

Logistics


Logistics Executive Summary: Key Findings

Employee

Strength




Average Attrition rate for this sector in FY 2013-14 on an



Organizations attribute Better Pay Opportunities, Personal

Reasons and Better Career Prospects as the main


Developing Potential Leaders, Attraction and Retaining

and Rewarding the Critical Talent are the key HR





16.7%

16.7%

66.7%

<100 Crore

100-300 Crore

300-500 Crore

500-1000 Crore

>1000 Crore

33.3%

66.7%

< 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

Employee

Strength

01

02

03

04

05

Annual

Revenue

Employee

Strength

97


Logistics Annual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 6.8 7.6 8.8 10.8 12.6 8.9

JM 7.1 8.2 8.8 10.8 12.9 8.7

MM 7.1 7.9 9.1 11.2 13.0 9.0

SM 7.5 8.4 9.6 11.4 13.5 9.4

TM 7.7 8.7 9.8 11.9 14.4 9.9


10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.4 11.3 10.6 10.7

9.8 11.2 11.9

9.3 8.7 9.6 11.8

8.9

10.6 10.0 9.6

11.5 10.7 10.8 9.9

11.4 12.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.9 10.8 11.1

10.3

11.7 12.6

9.7 9.4

10.2

12.6

9.3

11.3 10.8 10.3

12.6 11.7 11.8

10.7

12.9 13.3

10.5 9.9

10.4

13.2

9.5

OverallIndustry


TM

SM

MM

JM

CL


98


and Middle Management levels is expected to be lower than the overall average increment at

9.2% in this sector

The average increment at Clerical Cadre and

all Management levels is lower than the overall industry

average increment (10.3%)







Logistics Average Annual Increments FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 7.2 8.2 9.4 11.6 14.8 9.4

FY 2014-15 6.7 8.0 9.1 11.4 14.5 9.2


8.9

8.7

9.0

9.4

9.9

9.1 9.0

9.2

9.6

10.0

8.0

8.5

9.0

9.5

10.0

10.5


FY 2014-15 FY 2013-14

In %

99






Average annual increment percentages have reduced marginally across levels; the reduction is lowest at

the Top Management level


all their employees in the range of 6.7-14.5%,

across all levels


Logistics Annual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 7.8 9.7 11.2 13.6 15.8 11.1

JM 10.4 12.4 14.0 17.4 20.4 14.2

MM 12.9 15.0 16.8 20.7 24.2 16.7

SM 14.8 17.6 20.0 25.3 30.1 20.2

TM 15.4 19.2 23.4 28.8 34.4 23.2

In %


12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.7 18.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7 16.4 16.4

18.9 17.4 20.2

17.9 19.7

18.1 17.3

18.7 18.6 17.3 16.7

17.2 18.6 18.7

22.4 21.6

26.5

21.7 24.3

22.9 20.9

23.7 23.2 20.1 20.2

21.3 23.4 23.2

24.2 25.3

29.5

25.6

27.6 27.2

25.2

27.4 26.9

23.6 23.2 25.8

27.1 26.8

OverallIndustry


TM

SM

MM

JM

CL


100

The average variable pay at Clerical Cadre, Middle and Junior Management levels is expected to be lower than the overall





(18.5%)


levels reported decrease in average variable pay


The Junior Management level reported maximum

decrease in average variable pay compared to the overall industry


Logistics Average Annual Variable Pay FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 7.1 11.7 16.4 24.4 30.4 16.6

FY 2014-15 7.5 12.1 16.7 25.0 32.0 16.9


11.1

14.2

16.7

20.2

23.2

9.5

12.4

14.3

18.5

21.0

0.0

5.0

10.0

15.0

20.0

25.0


FY 2014-15 FY 2013-14

In %

101




increased to 7.5%



variable pay







levels


Logistics Key Benefits



< 3 Lacs - - - - -

3 - 5 Lacs - 16.7 33.3 - -

5 - 8 Lacs - 16.7 33.3 33.3 -

8 -12 Lacs - - 16.7 50.0 16.7

> 12 Lacs - - 16.7 16.7 83.3

N/A 100.0 66.7 - - -



< 5000 - 16.7 16.7 16.7 -

5000 - 8000 - 33.3 33.3 16.7 -

8000 -12000 - - 33.3 33.3 16.7

12000 - 15000 - - 16.7 16.7 16.7

> 15000 - - - 16.7 33.3

On Actuals - - - - 33.3

N/A 100.0 50.0 - - -



Provided by - - 66.7% 83.3% 100.0%

Average

Amount per

Month

- - 8000-12000 8000-12000 10000-16000



< 5000 - - - - -

5000 - 10000 - 50.0 50.0 33.3 -

10000 - 15000 - 16.7 50.0 33.3 33.3

> 15000 - - - 16.7 33.3

On Actuals - - - 16.7 33.3

N/A 100.0 33.3 - - -

33.3%

33.3%

16.7%

16.7% Employee only

Employee & spouse





Leave Encashment

100.0%

(2)

(2)

(1)

(1)

102


Logistics Key HR Challenges and Managing Attrition

Developing

Potential

Leaders

Developing

Potential

Leaders

Attracting Talent


29 Clerical/

JM/

MM/

SM/

TM/

32

36

41

45

Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent




Relocation etc.)





Three/ Five Year Deferred Incentive Plan


Talent


Higher Salaries


HR

Challenges

103

Media &

Advertising


Media & Advertising Executive Summary: Key Findings

Employee

Strength







Organizations attribute Better Career Prospects, Pursuing

Further Studies, Better Utilization of Current Skills as the








12.5%

37.5%

12.5%

12.5%

25.0% <100 Crore

100-300 Crore

300-500 Crore

500-1000 Crore

>1000 Crore

Employee

Strength

37.5%

37.5%

12.5%

12.5% < 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

01

02

03

04

05

Annual

Revenue

Employee

Strength

105


Media & Advertising Annual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 7.1 8.4 9.3 11.4 13.1 9.2

JM 7.4 8.2 9.4 11.6 13.3 9.6

MM 7.6 8.8 9.6 11.4 13.5 9.4

SM 7.6 8.7 10.0 12.0 14.4 10.2

TM 7.9 9.2 10.6 12.7 15.2 10.4


10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.4 11.3 10.6 10.7

9.8 11.2 11.9

9.3 8.7 9.6 11.8

8.9

10.6 10.0 9.6

11.5 10.7 10.8 9.9

11.4 12.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.9 10.8 11.1

10.3

11.7 12.6

9.7 9.4

10.2

12.6

9.3

11.3 10.8 10.3

12.6 11.7 11.8

10.7

12.9 13.3

10.5 9.9

10.4

13.2

9.5

OverallIndustry


TM

SM

MM

JM

CL


106

The average increment at Clerical Cadre and Middle Management

levels is expected to be lower than the overall average increment at

9.6% in this sector

The average increment at Clerical Cadre and all

Management levels (except Top

Management) is lower than the overall industry average increment (10.3%)


levels reported decrease in average increments


The Middle Management level reported maximum




Media & Advertising Average Annual Increments FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 7.4 8.6 9.8 11.9 15.2 9.8

FY 2014-15 6.9 8.1 9.6 11.6 14.9 9.6


9.2

9.6

9.4

10.2

10.4

9.4

9.9

9.6

10.4

10.6

8.5

9.0

9.5

10.0

10.5

11.0


FY 2014-15 FY 2013-14

In %

107





the 10th and 25th percentile increments



reduction is highest at the Junior Management

level



levels


Media & Advertising Annual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 9.3 10.7 12.3 14.7 16.9 12.4

JM 11.2 13.2 15.6 19.6 23.2 15.7

MM 12.3 14.8 17.4 22.6 27.3 17.2

SM 14.8 18.2 21.2 27.2 33.0 21.3

TM 16.2 20.8 25.7 31.3 37.2 25.8

In %


12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.7 18.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7 16.4 16.4

18.9 17.4 20.2

17.9 19.7

18.1 17.3

18.7 18.6 17.3 16.7

17.2 18.6 18.7

22.4 21.6

26.5

21.7 24.3

22.9 20.9

23.7 23.2 20.1 20.2

21.3 23.4 23.2

24.2 25.3

29.5

25.6

27.6 27.2

25.2

27.4 26.9

23.6 23.2 25.8

27.1 26.8

OverallIndustry


TM

SM

MM

JM

CL


108

The average variable pay at Clerical Cadre, Middle and Junior Management levels is expected to be lower than the overall




(18.5%)

The Clerical Cadre and Top Management level reported increase

in average variable pay compared to the

overall industry




Media & Advertising Average Annual Variable Pay FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 8.7 12.1 17.1 25.6 30.8 17.2

FY 2014-15 9.1 13.0 17.4 27.0 32.6 17.5


12.4

15.7 17.2

21.3

25.8

10.5

12.8

15.4

18.7

22.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0


FY 2014-15 FY 2013-14

In %

109




increased to 9.1%



variable pay





across all levels


Media & Advertising Key Benefits



< 3 Lacs - - - - -

3 - 5 Lacs - 25.0 37.5 - -

5 - 8 Lacs - 25.0 37.5 25.0 -

8 -12 Lacs - - 12.5 50.0 12.5

> 12 Lacs - - 12.5 25.0 87.5

N/A 100.0 50.0 - - -



< 5000 - 25.0 12.5 12.5 -

5000 - 8000 - 37.5 37.5 12.5 -

8000 -12000 - - 37.5 37.5 12.5

12000 - 15000 - - 12.5 25.0 12.5

> 15000 - - - 12.5 37.5

On Actuals - - - - 37.5

N/A 100.0 37.5 - - -



Provided by - - 62.5% 87.5% 100.0%

Average

Amount per

Month

- - 8000-12000 8000-12000 10000-16000



< 5000 - - - - -

5000 - 10000 - 62.5 50.0 37.5 -

10000 - 15000 - 25.0 50.0 25.0 25.0

> 15000 - - - 25.0 37.5

On Actuals - - - 12.5 37.5

N/A 100.0 12.5 - - -

25.0%

37.5%

25.0%

12.5% Employee only

Employee & spouse





Leave Encashment

100.0%

(2)

(2)

(1)

(3)

110


Media & Advertising Key HR Challenges and Managing Attrition

Developing

Potential

Leaders

Developing

Potential

Leaders

Attracting Talent


28 Clerical/

JM/

MM/

SM/

TM/

30

34

41

46

Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent








Performers



Talent

Higher Salaries



HR

Challenges

111

Pharmaceutical,

Life Sciences &

Health Care


Pharma, Life Sciences & Health Care Executive Summary: Key Findings

Employee

Strength








Reasons and Pursuing Further Studies as the main reasons

for attrition


Retaining and Rewarding the Critical Talent are the key HR


The average salary increment across this sector is projected at

12.4% in FY 2014-15, which is 0.2% points lower than the

previous FY 2013-14 (12.6%).

9.1%

31.8%

9.1% 18.2%

31.8% <100 Crore

100-300 Crore

300-500 Crore

500-1000 Crore

>1000 Crore

18.2%

36.4%

36.4%

9.1% < 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

01

02

03

04

05

Annual

Revenue

Employee

Strength

113


Pharma, Life Sciences & Health Care Annual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 8.2 9.7 11.6 13.2 14.6 11.7

JM 8.4 10.4 11.9 13.8 15.4 11.8

MM 8.5 10.7 12.5 14.4 16.1 12.4

SM 8.7 10.7 12.8 14.9 16.8 12.6

TM 9.3 11.5 13.4 15.5 17.4 13.2


10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.4 11.3 10.6 10.7

9.8 11.2 11.9

9.3 8.7 9.6 11.8

8.9

10.6 10.0 9.6

11.5 10.7 10.8 9.9

11.4 12.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.9 10.8 11.1

10.3

11.7 12.6

9.7 9.4

10.2

12.6

9.3

11.3 10.8 10.3

12.6 11.7 11.8

10.7

12.9 13.3

10.5 9.9

10.4

13.2

9.5

OverallIndustry


TM

SM

MM

JM

CL


114


level is expected to be lower than the overall average increment at 12.4% in this sector

The average increment at Clerical Cadre and all Management levels is

higher than the overall industry average increment (10.3%)




The Senior Management level reported maximum




Pharma, Life Sciences & Health Care Average Annual Increments FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 8.2 10.6 12.7 14.9 17.6 12.6

FY 2014-15 8.1 10.2 12.4 14.6 17.2 12.4


11.7 11.8

12.4

12.6

13.2

12.0

12.2

12.6

12.9

13.4

10.5

11.0

11.5

12.0

12.5

13.0

13.5

14.0


FY 2014-15 FY 2013-14

In %

115



In comparison to other percentiles, a marginal




reduction is highest at the Junior Management

level



levels


12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.7 18.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7 16.4 16.4

18.9 17.4 20.2

17.9 19.7

18.1 17.3

18.7 18.6 17.3 16.7

17.2 18.6 18.7

22.4 21.6

26.5

21.7 24.3

22.9 20.9

23.7 23.2 20.1 20.2

21.3 23.4 23.2

24.2 25.3

29.5

25.6

27.6 27.2

25.2

27.4 26.9

23.6 23.2 25.8

27.1 26.8

OverallIndustry


TM

SM

MM

JM

CL


Pharma, Life Sciences & Health Care Annual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 10.3 11.7 13.5 16.2 19.6 13.6

JM 12.4 14.3 16.2 19.9 23.4 16.4

MM 13.4 15.9 18.5 24.3 29.8 18.6

SM 16.8 20.2 23.2 28.8 34.1 23.4

TM 18.3 22.7 27.3 32.3 36.8 27.1

In %


116




this sector




(18.5%)

The Junior and Middle Management level

reported decrease in average variable pay






Pharma, Life Sciences & Health Care Average Annual Variable Pay FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 9.1 13.7 17.8 27.1 35.8 18.1

FY 2014-15 10.1 14.1 18.2 28.4 36.4 18.4


13.6

16.4

18.6

23.4

27.1

11.0

14.7 15.9

21.5

24.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0


FY 2014-15 FY 2013-14

In %

117




increased to 10.1%



variable pay






levels


Pharma, Life Sciences & Health Care Key Benefits



< 3 Lacs - - - - -

3 - 5 Lacs - 36.4 31.8 18.2 -

5 - 8 Lacs - 31.8 50.0 18.2 -

8 -12 Lacs - - 18.2 45.5 4.5

> 12 Lacs - - - 18.2 95.5

N/A 100.0 31.8 - - -



< 5000 - 27.3 22.7 13.6 -

5000 - 8000 - 27.3 45.5 27.3 -

8000 -12000 - - 18.2 27.3 18.2

12000 - 15000 - - 13.6 18.2 27.3

> 15000 - - - 13.6 31.8

On Actuals - - - - 22.7

N/A 100.0 45.5 - - -



Provided by - - 36.4% 68.2% 90.9%

Average

Amount per

Month

- - 8000-12000 8000-12000 10000-16000



< 5000 - - - - -

5000 - 10000 - 22.7 40.9 31.8 -

10000 - 15000 - 27.3 36.4 36.4 31.8

> 15000 - 13.6 22.7 18.2 22.7

On Actuals - - - 13.6 45.5

N/A 100.0 36.4 - - -

18.2%

36.4%

31.8%

13.6% Employee only

Employee & spouse





Leave Encashment

(4) (3)

(7)

(8)

118


Pharma, Life Sciences & Health Care Key HR Challenges and Managing Attrition

Developing

Potential

Leaders

Developing

Potential

Leaders

Attracting Talent


31 Clerical/

JM/

MM/

SM/

TM/

31

37

43

48

Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent




Relocation etc.)




Retention Bonus



Talent

Higher Salaries



HR

Challenges

119

Retail


Retail Executive Summary: Key Findings

Employee

Strength




Voluntary Attrition rate for this sector on an average in FY

2013-14 is 13.1%. Highest attrition rate is observed for the


Organizations attribute Better Pay Opportunities, Better

Career Prospects and Personal Reasons as the main


Developing Potential Leaders, Compensation Structuring

and Employee Engagement are the key HR challenges

faced by this sector




22.2%

22.2%

22.2%

55.6%

<100 Crore

100-300 Crore

300-500 Crore

500-1000 Crore

>1000 Crore

33.3%

55.6%

22.2% < 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

01

02

03

04

05

Annual

Revenue

Employee

Strength

121


Retail Annual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 6.9 7.9 8.5 10.7 12.5 8.6

JM 7.0 7.7 8.7 10.9 12.6 8.9

MM 7.2 7.9 9.0 10.8 12.9 9.2

SM 7.4 8.2 9.4 11.6 13.4 9.3

TM 7.6 8.8 9.6 11.7 14.1 9.5


10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.4 11.3 10.6 10.7

9.8 11.2 11.9

9.3 8.7 9.6 11.8

8.9

10.6 10.0 9.6

11.5 10.7 10.8 9.9

11.4 12.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.9 10.8 11.1

10.3

11.7 12.6

9.7 9.4 10.2

12.6

9.3

11.3 10.8 10.3

12.6 11.7 11.8

10.7

12.9 13.3

10.5 9.9

10.4

13.2

9.5

OverallIndustry


TM

SM

MM

JM

CL


122


level is expected to be lower than the overall average increment at

9.1% in this sector

The average increment at Clerical Cadre and all Management levels is lower than the overall

industry average increment (10.3%)


levels reported decrease in average increments






Retail Average Annual Increments FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 7.3 8.2 9.3 11.5 14.3 9.3

FY 2014-15 6.8 7.9 9.1 11.2 14.1 9.1


8.6

8.9

9.2 9.3

9.5

8.7

9.1

9.3

9.5

9.9

7.5

8.0

8.5

9.0

9.5

10.0


FY 2014-15 FY 2013-14

In %

123







reduction is highest at the Top Management

level



levels


Retail Annual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 10.0 11.3 12.4 15.5 18.8 12.3

JM 12.2 14.5 16.3 20.2 23.7 16.4

MM 13.8 16.5 18.8 24.2 30.0 18.7

SM 17.0 20.4 23.4 28.6 34.0 23.2

TM 17.8 22.6 27.0 32.8 38.2 26.8

In %


12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.7 18.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7 16.4 16.4

18.9 17.4 20.2

17.9 19.7

18.1 17.3

18.7 18.6 17.3 16.7

17.2 18.6 18.7

22.4 21.6

26.5

21.7 24.3

22.9 20.9

23.7 23.2 20.1 20.2

21.3 23.4 23.2

24.2 25.3

29.5

25.6

27.6 27.2

25.2

27.4 26.9

23.6 23.2 25.8

27.1 26.8

OverallIndustry


TM

SM

MM

JM

CL


124




this sector




(18.5%)

The Junior and Middle Management level

reported decrease in average variable pay






Retail Average Annual Variable Pay FY 2014-15 (Projections) vis-à-vis FY 2013-14 (Actuals)


FY 2013-14 9.2 13.2 17.8 26.7 35.2 18.3

FY 2014-15 9.7 14.1 18.1 28.2 37.8 18.5


12.3

16.4

18.7

23.2

26.8

10.8

14.8

16.9

21.0

23.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0


FY 2014-15 FY 2013-14

In %

125

Higher variable pay across this sector is expected to be around the 38% mark. However, on the lower

side, the variable pay has also increased to 9.7%








across all levels


Retail Key Benefits



< 3 Lacs - - - - -

3 - 5 Lacs - 22.2 33.3 - -

5 - 8 Lacs - 33.3 44.4 22.2 -

8 -12 Lacs - - 22.2 55.6 11.1

> 12 Lacs - - - 22.2 88.9

N/A 100.0 44.4 - - -



< 5000 - 22.2 22.2 11.1 -

5000 - 8000 - 22.2 44.4 22.2 -

8000 -12000 - - 22.2 33.3 11.1

12000 - 15000 - - 11.1 22.2 11.1

> 15000 - - - 11.1 44.4

On Actuals - - - - 33.3

N/A 100.0 55.6 - - -



Provided by - - 55.6% 66.7% 100.0%

Average

Amount per

Month

- - 8000-12000 8000-12000 10000-18000



< 5000 - - - - -

5000 - 10000 - 55.6 55.6 33.3 -

10000 - 15000 - 11.1 44.4 33.3 22.2

> 15000 - 33.3 - 22.2 44.4

On Actuals - - - 11.1 33.3

N/A 100.0 - - - -

22.2%

33.3%

33.3%

11.1% Employee only

Employee & spouse





Leave Encashment

100.0%

(2) (1)

(3)

(3)

126


Retail Key HR Challenges and Managing Attrition

Developing

Potential

Leaders

Developing

Potential

Leaders

Attracting Talent


28 Clerical/

JM/

MM/

SM/

TM/

31

35

40

47

Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent





Relocation etc.)



Profit Sharing

Retention Bonus


Talent

Higher Salaries



HR

Challenges

127


Executive Summary




Contact Us


About Us Deloitte Human Capital Consulting Deloitte Consulting’s Human Capital practice is a leading global advisor and implementation partner working with companies, governments, and

organizations around the world. Our goal is to improve our clients’ organizational results and impact by focusing on challenges at the intersection

of business and people.

Our global network of more than 5,000 Human Capital professionals serves 100 countries. The scale of our global Human Capital partner and

practitioner network allows us to provide global and national clients with a network, which can respond quickly, flexibly, and at scale to meet client

challenges. Our practice goes to market applying deep industry experience and globally recognized HR, talent, and organization transformation

skills and capabilities. We offer a focused combination of breadth and expertise across HR service lines.

Our India Offerings:

Strategic Change &

Organization Transformation

Talent, Performance

& Rewards

HR

Transformation

Merger and Acquisitions (M&A)

Organization Design

• Organization Structure

• Role Profiling

HR Audit

• HR Effectiveness Review

HR Policies and Procedures

• Plan and Design HR Policies

• Development of Standard Operating

Processes in HR

HR Strategy

• Define HR Strategy

• Design of HR Structure Roles & Core

Processes

Job Evaluation

Compensation & Benefits

• Structuring & Benchmarking

• Incentive Plan Design

Employee Stock Options

Talent Management

• Identify Critical Workforce

• Competency Modeling

• Assessment Centers

Performance Management System

Learning and Development

• Training Needs Assessment

• Training Design & Delivery

Leadership Development

• 360 Degree Feedback

• Succession Planning

• Capability Development

HR Systems

• Design, Review and Benchmarking

India Operations Setup

• India Office Setup – Location feasibility

Study

• Key Elements of India – Rules And

Regulations

• End-to-End HR Interventions

• Employment Contract Letter

Merger & Acquisitions

• Due Diligence

• Post-announcement phase

• Integration

• Communication Workshop

Culture

• Organization Culture Assessment

• Employee Engagement Survey

Change Management

• Readiness Assessment

• Communication

• Stakeholder Impact Assessment

129


Executive Summary




Contact Us


Contact Us

P Thiruvengadam

Sr. Director

National Practice

Leader

Human Capital Consulting,

Deloitte Touche Tohmatsu India Private Limited,

100/2, Anchorage II,

Richmond Road, Bengaluru,

Karnataka – 560025, India

Tel/Direct: +91 (80) 6627 6108

Mobile: +91 98 4503 6566

E-mail: [email protected]

Dr. Vishalli Dongrie

Sr. Director

Head – Talent,

Performance and

Rewards



India Bulls Finance Centre, Tower 3,

27 – 32nd Floor, Senapati Bapat Marg,

Elphinstone Road ( West ),

Mumbai – 400013, India

Tel/Direct: +91 (22) 6185 4280

Mobile: +91 98 3397 3458


F o r t e c h n i c a l q u e r i e s , p l e a s e

r e a c h o u t t o :

Saptarshi Chatterjee

Manager







Tel/Direct: +91 (22) 6185 4549

Mobile: +91 98 1995 1648


Malvika Sharma

Senior Analyst







Tel/Direct: +91 (22) 6185 4508

Mobile: +91 98 1991 2990


131

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