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Annual Compensation Trends Report 2014

Human Capital Advisory Services


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Introduction:
Deloitte Human Capital Consulting in India recently concluded a cross industry Compensation Trends Survey that provided key insights on salary increments, variable pay trends, attrition rates, key HR challenges, benefits provided by organizations and measures to manage and reward their critical talent. The online survey was launched for the first time and a total of 209 companies participated in the survey. The key survey highlights, followed by the detailed sector wise analysis is mentioned below:

Survey Highlights:
• The average salary increment across sectors is projected at 10.3% in FY 2014, which is 0.3% points lower than the previous FY 2013 (10.6%)
• The average variable pay percent across sectors is projected at 18.5% in FY 2014, which is 1.2% points higher than the previous FY 2013 (17.3%)
• The average voluntary attrition rate across sectors for FY 2013 is 13.4%, 0.8% points lower than the previous FY 2012 (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

Sectorial Overview:


Auto & Auto Components:
• The average salary increment in this sector is projected at 9.9% in FY 2014, which is 0.4% points lower than the previous FY 2013 (10.3%)
• The average variable pay percent in this sector is projected at 17.6% in FY 2014, which is 0.3% points higher than the previous FY 2013 (17.3%)
• The average voluntary attrition rate for this sector in FY 2013 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

Banking, Financial Services & Insurance
• The average salary increment across this sector is projected at 9.5% in FY 2014, which is 0.2% points lower than the previous FY 2013 (9.7%)
• The average variable pay percent across this sector is projected at 20.2% in FY 2014, which is 0.4% points higher than the previous FY 2013 (19.8%)
• Voluntary Attrition rate for this sector in FY 2013 on an average is 14.0%. Highest attrition rate is observed for the Clerical Cadre at 18.6%
• Organizations attribute Better Career Prospects, Personal 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

Chemical
• The average salary increment across this sector is projected at 11.6% in FY 2014, which is 0.3% points lower than the previous FY 2013 (11.9%)
• The average variable pay percent across this sector is projected at 17.8% in FY 2014, which is 0.4% points higher than the previous FY 2013 (17.4%)
• Voluntary Attrition rate for this sector in FY 2013 on an average is 12.2%. Highest attrition rate is observed for the Clerical Cadre at 14.6%
• Organizations attribute Better Career Prospects, Better Pay Opportunities and Personal Reasons as the main reasons for attrition
• Career Management, Developing Potential Leaders and Retaining and Rewarding the Critical Talent are the key HR challenges faced by this sector

Consumer Business

• The average salary increment across this sector is projected at 10.6% in FY 2014, which is 0.3% points lower than the previous FY 2013 (10.9%)
• The average variable pay percent across this sector is projected at 19.8% in FY 2014, which is 0.4% points higher than the previous FY 2013 (19.4%)
• Voluntary Attrition rate for this sector in FY 2013 on an average is 12.5%. Highest attrition rate is observed for the Clerical Cadre at 16.3%
• Organizations attribute Better Career Prospects, Personal 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

Engineering and Manufacturing

• The average salary increment across this sector is projected at 10.9% in FY 2014, which is 0.3% points lower than the previous FY 2013 (11.2%)
• The average variable pay percent across this sector is projected at 18.2% in FY 2014, which is 0.4% points higher than the previous FY 2013 (17.8%)
• Voluntary Attrition rate for this sector in FY 2013 on an average is 11.8%. Highest attrition rate is observed for the Clerical Cadre at 14.2%
• 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

Energy & Natural Resources

• The average salary increment across this sector is projected at 9.7% in FY 2014, which is 0.3% points lower than the previous FY 2013 (10%)
• The average variable pay percent across this sector is projected at 17.4% in FY 2014, which is 0.2% points higher than the previous FY 2013 (17.2%)
• Voluntary Attrition rate for this sector in FY 2013 on an average is 11.5%. Highest attrition rate is observed for the Clerical Cadre at 13.9%
• 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

Hi-Tech
• The average salary increment across this sector is projected at 11.5% in FY 2014, which is 0.2% points lower than the previous FY 2013 (11.7%)
• The average variable pay percent across this sector is projected at 18.8% in FY 2014, which is 0.2% points higher than the previous FY 2013 (18.6%)
• Voluntary Attrition rate for this sector in FY 2013 on an average is 14.2%. Highest attrition rate is observed for the Clerical Cadre at 20.2%
• Organizations attribute Better Career Prospects, 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 challenges faced by this sector

IT enabled Services
• The average salary increment across this sector is projected at 12.0% in FY 2014, which is 0.3% points lower than the previous FY 2013 (12.3%)
• The average variable pay percent across this sector is projected at 18.5% in FY 2014, which is 0.3% points higher than the previous FY 2013 (18.2%)
• Voluntary Attrition rate for this sector in FY 2013 on an average is 16.4%. Highest attrition rate is observed for the Clerical Cadre at 26.2%
• Organizations attribute Better Career Prospects, Personal Reasons and Better Pay Opportunities as the main reasons for attrition
• Developing Potential Leaders, Career Management and Retaining and Rewarding the Critical Talent are the key HR challenges faced by this sector

Infrastructure & Real Estate
• The average salary increment across this sector is projected at 9.4% in FY 2014, which is 0.3% points lower than the previous FY 2013 (9.7%)
• The average variable pay percent across this sector is projected at 17.1% in FY 2014, which is 0.3% points higher than the previous FY 2013 (16.8%)
• Voluntary Attrition rate for this sector in FY 2013 on an 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 reasons for attrition
• Developing Potential Leaders, Performance Management, and Retaining and Rewarding the Critical Talent are the key HR challenges faced by this sector

Logistics
• The average salary increment across this sector is projected at 9.2% in FY 2014, which is 0.2% points lower than the previous FY 2013 (9.4%)
• The average variable pay percent across this sector is projected at 16.9% in FY 2014, which is 0.3% points higher than the previous FY 2013 (16.6%)
• Average Attrition rate for this sector in FY 2013 on an average is 10.5%. Highest attrition rate is observed for the Clerical Cadre at 12.8%
• Organizations attribute Better Pay Opportunities, Personal Reasons and Better Career Prospects as the main reasons for attrition
• Developing Potential Leaders, Attraction and Retaining and Rewarding the Critical Talent are the key HR challenges faced by this sector

Media & Advertising
• The average salary increment across this sector is projected at 9.6% in FY 2014, which is 0.2% points lower than the previous FY 2013 (9.8%)
• The average variable pay percent across this sector is projected at 17.5% in FY 2014, which is 0.3% points higher than the previous FY 2013 (17.2%)
• Voluntary Attrition rate for this sector in FY 2013 on an average is 15.6%. Highest attrition rate is observed for the Clerical Cadre at 22.3%
• Organizations attribute Better Career Prospects, Pursuing Further Studies, Better Utilization of Current Skills as the main reasons for attrition
• Developing Potential Leaders, Career Management and Retaining and Rewarding the Critical Talent are the key HR challenges faced by this sector

Pharmaceutical, Life Sciences & Health Care
• The average salary increment across this sector is projected at 12.4% in FY 2014, which is 0.2% points lower than the previous FY 2013 (12.6%).
• The average variable pay percent across this sector is projected at 18.4% in FY 2014, which is 0.3% points higher than the previous FY 2013 (18.1%)
• Voluntary Attrition rate for this sector in FY 2013 on an average is 12.8%. Highest attrition rate is observed for the Clerical Cadre at 15.6%
• Organizations attribute Better Career Prospects, Personal Reasons and Pursuing Further Studies as the main reasons for attrition
• Developing Potential Leaders, Career Management and Retaining and Rewarding the Critical Talent are the key HR challenges faced by this sector

Retail
• The average salary increment across this sector is projected at 9.1% in FY 2014, which is 0.2% points lower than the previous FY 2013 (9.3%)
• The average variable pay percent across this sector is projected at 18.5% in FY 2014, which is 0.2% points higher than the previous FY 2013 (18.3%)
• Voluntary Attrition rate for this sector on an average in FY 2013 is 13.1%. Highest attrition rate is observed for the Clerical Cadre at 15.2%
• Organizations attribute Better Pay Opportunities, Better Career Prospects and Personal Reasons as the main reasons for attrition
• Developing Potential Leaders, Compensation Structuring and Employee Engagement are the key HR challenges faced by this sector