New Delhi, Apr 7: While the whole world is under the grip of recession, India will witness a moderate salary increase of 7.3 per cent this year according to global human resource consultancy firm Hay Group.
In its report Hay Group said, "Overall, the picture for India has deteriorated...Now, with large numbers of organizations freezing pay, and predictions overall of median pay inflation of around 7.3 per cent after years of double-digit growth, there is evidence that organizations are having to tighten their belts."
The report further said "the biggest concern for Indian companies is still the attraction and retention of talent as opposed to managing downsizing." This means that Indian companies would continue to invest in competitive salaries for high performing and high potential workers, but at the same time they need to develop a world culture and leadership style that will make the companies employers of choice.
The report added that in the fast growing economies like India and China the firms that are freezing pay are mostly the local operations of multinational companies (MNC).