With the job market showing signs of maturity, industries are getting smarter at rewarding states TeamLease Jobs & Salaries Primer Report – 2016-2017. As per the report, unlike last year double-digit salary growth will not be universal. Only 42% of the profiles will witness a significant increment in the pay package this fiscal. The average salary hike in FY’16-17 will range between 11-13% across industries and functions.
According to the report, Delhi seems to have dethroned Bangalore as the top-paying city. The city tops the growth chart in 6 of the 15 industries.
From a sector perspective, employees in IT, Agriculture and Agrochemicals, FMCG, FMCD, Healthcare & Pharma, Hospitality, Retail and Telecommunications will receive double-digit salary hikes. However, companies across Auto and allied industries, BFSI, BPO and IT enabled services, Construction & Real Estate and Power & Energy will remain conservative. With the highest annualized salary growth being a mere 9.28% Automobile & allied industries seems to be the lowest rewarding sector.
A detailed analysis governing the salaries of both perm and temp profiles, as per the report the while salary gap between temp and perm is virtually absent in the Industrial Manufacturing and Allied sector. The study also states that blue collar profiles will garner lofty salary increments.
The report also highlights that transformative skills (decision making, strategy and planning and business transactional skills (repeat sales, relationship building) will be highly valued skills at a workplace.
♣ An overhaul of the payout scenario shakes up sectors and redistributes rewards across profiles and cities. Unlike last year, double-digit salary growth is apparently elusive this year – but a closer look reveals that about 56% of the cities and 42% of profiles have actually reaped this distinction and are spread unevenly across sectors.
♣ Innovation captures the imagination of many a sector resulting in a 15% increase in the number of new types of jobs being generated. The previous year’s focus on analytical jobs is now broader based, with the need for design, usability and financial analysis being the drivers of new job creation. Just 3 (out of 15) sectors – Automobile and Allied, Construction and Real Estate and Healthcare and Pharmaceuticals – are exceptions.
♣ The gap in temp and perm salaries remains steady with sectors holding on to the differentials of the last year. There are some exceptional cases where the gap is virtually absent – Industrial Manufacturing and Allied, a key sector for blue collar employment, shaves this gap down to 0.76%, 1.02% and 1.06% in Chennai, Hyderabad and Chandigarh respectively.
♣ A plethora of sectors led by the seemingly invincible Information Technology – Agriculture and Agrochemicals, FMCG, FMCD, Healthcare and Pharma, Hospitality, Retail and Telecommunications all clock up salary growth rates upwards of 11% across multiple cities. Delhi, Bangalore, Pune, Mumbai, Hyderabad and Chennai are prominent on the scale of high increments.
♣ Many sectors pay top dollar to IT roles, which have bubbled up to be top paid roles for such sectors. The ubiquitous SAP Consultant / Developer is followed by IT Executive and Systems Administrator in FMCG, Industrial Manufacturing and Allied, Power and Energy and Retail.
♣ Delhi leads the hyper-growth city-sector clusters that dole out high salary increments. IT (13.65%), Healthcare and Pharma (13.28%) and Telecommunication (12.67%) choose Delhi as the city to reward talent in best. Pune-Retail (13.28%), Hyderabad-FMCD (12.19%), Bangalore-Construction and Real Estate (11.66%) and Pune-Agriculture and Agrochemicals (12.32%) are the other prominent city-industry clusters.
♣ Salaries in the Blue Collar domain see a steep rise for select profiles, with employers wanting to reward and retain specialized skills. Power and Energy (Electrician, Supervisor) and Hospitality (Gym Instructor, Housekeeping) are cases where blue collar job profiles have garnered lofty salary increments this year. The demand spurt for vocational skills is predominantly coming from a least likely sector – Ecommerce – and their direct employment is driven by the need for minimum standards of soft skills.
♣ Rewarding niche and rare skills by quantifying skill levels and correlating them with business value is a practice that caught on three years ago. Rigorous analysis in compensation design, advocated by TeamLease based on our own, trendsetting, modeling of the practice, is all-pervasive today. Transformative skills (decision making, strategy and planning) and Business Transactional skills (repeat sales, relationship building) are seen to be valued highly at the workplace in the skills analysis section of the report.
Commenting on the report, Rituparna Chakraborty, Senior Vice President TeamLease Services, said, “The current stagnancy in salary growth is more of a course correction. The renewed focus on talent acquisition coupled with improvement in a business scenario will bring back the buoyancy in reward and compensation structure.”