Co's pay Rs 4.8 Lakh and Earn Rs 6 Lakh

New Delhi, Apr 19: According to a study conducted by Pricewaterhouse Coopers (PwC) -- Measuring Human Capital - Driving Business Results -- organisations in India pay an average remuneration of Rs 4.8 lakh and earn Rs 6 lakh of profit per employee, which makes the human capital return ratio on investment to 1.79 for organisations in the country.

This is besides the fact that companies make an investment of Rs 7,000 on learning and development (L&D) per employee.

The report said that Indian companies make a pure profit of Rs 15 from every Rs 100-worth revenue generated by their each employee.

Sankar Ramamurthy, PwC India Leader People and Change practice said, "With India being the fastest growing economy, organisations that would maximise their human capital contribution to business performance, would be the ones to best leverage the positive economic environment".

Among all the sectors, engineering and manufacturing generate maximum revenues and profits per employee. The third spot was followed by fast moving consumer goods (FMCG) and the pharmaceutical space.

Moreover, organisations with higher revenue base incur 1.3 times higher cost per employee but they earn 1.4 times higher profit per employee organisations compared with lower revenue base companies.

This report is based on a survey of 37 firms across different sectors noted that Indian organisations spend about Rs 25,500 per hire on an average.

However, FMCG and other unclassified sectors spend more than double the amount towards their recruitment. This could be because of the high cost of their recruitment teams.

The report stated that information technology and information technology enabled services (IT/ITeS) sector recruits the highest number of graduates. When it comes to retaining entry level talent it is the engineering and manufacturing sectors which leads the industry.

Not surprisingly, the common complaint that we keep hearing was also confirmed by this study. IT/ITeS has the lowest spend on L&D per employee, but this sector suffers from the highest termination and resignation rate as well.

OneIndia News