New Delhi, Aug 19 (UNI) With mounting inflationary pressure and economic slowdown, India Inc is expected to be less generous with saalary hikes in 2009, says a Hewitt survey.
Global HR consultancy major Hewitt Associates today said that a survey of 150 leading corporates in India has revealed that a majority of companies are taking into account inflation and rising input costs for their planned salary hike budget for the next year.
The survey was conducted to understand the impact of economic slowdown on compensation and salary trends in the country.
While the year 2008 has still seen a strong average salary increase of 14.8 per cent, the global economic slowdown, US sub-prime crisis and rising inflation have caused Indian companies to revisit budget plans for 2009 and the average salary projections for the coming year are lower by a percentage point at 13.9 per cent, the study says.
About 63 per cent of the organisations surveyed said inflation and rising input costs have been discussed and considered in the context of their salary increase budgets for 2009.
So far, salary increases have remained insulated from the economic slowdown, Hewitt said, adding that India Inc is not reducing salaries but tightening the HR processes.
According to the survey, firms are looking to balance the pressures of inflation and lower HR budgets by increasing productivity (57 per cent) and redeployment of manpower (31 per cent).
About 30 per cent of the respondents said they have increased performance linkages to counter fixed pay increases, whereas only 20 per cent of the organisations surveyed mentioned a hiring freeze or slowdown.
UNI SR AK BST2054