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Intense Competition, Talent Crunch Push Companies to Hand Out 15-20% Pay Hikes

Indian employees have never had it so good. Intense competition and rising attrition levels are forcing companies to hand out 15-20% mid-term salary hikes. Reliance Industries, Marico and Dabur have offered mid-term increments and out-of-turn hikes of 15-20% to top performers in recent months. This is over and above the 15-20% salary hikes handed out during annual appraisals last year. This comes at a time when India Inc. is desperately trying to hold back talent, especially in telecom, IT, BPO and retail. A massive recruitment spree in sunrise sectors like BPO, telecom and retail has led to a demand-supply mismatch and mid-term hikes going up to 40%. Average attrition rates in IT have moved up to 22% from 18% and those in BPOs to 50% from 46%. In the manufacturing sector, talent exodus is averaging 8-12%. Several corporates are even offering bonuses and increments on a quarterly basis to top teams. An HR head said, "Although it is a short-term reaction, we have to react proactively to the market scenario and retain our performers. If one loses an employee, the average time taken for a new person to pick up the skills is up to six months, which is critical time lost for a company. Also, replacement costs like hiring consultants would in any case add up to a huge expense and a lot of pressure on HR," said Dabur India HR chief. Company are identifying people who may be tempted to leave and are devising ways of retaining such talent – offering learning and development facilities for freshers, sending them abroad on one-year bonds (for six-months postings), etc

Intense Competition, Talent Crunch Push Companies to Hand Out 15-20% Pay Hikes

Indian employees have never had it so good. Intense competition and rising attrition levels are forcing companies to hand out 15-20% mid-term salary hikes. Reliance Industries, Marico and Dabur have offered mid-term increments and out-of-turn hikes of 15-20% to top performers in recent months. This is over and above the 15-20% salary hikes handed out during annual appraisals last year. This comes at a time when India Inc. is desperately trying to hold back talent, especially in telecom, IT, BPO and retail. A massive recruitment spree in sunrise sectors like BPO, telecom and retail has led to a demand-supply mismatch and mid-term hikes going up to 40%. Average attrition rates in IT have moved up to 22% from 18% and those in BPOs to 50% from 46%. In the manufacturing sector, talent exodus is averaging 8-12%. Several corporates are even offering bonuses and increments on a quarterly basis to top teams. An HR head said, "Although it is a short-term reaction, we have to react proactively to the market scenario and retain our performers. If one loses an employee, the average time taken for a new person to pick up the skills is up to six months, which is critical time lost for a company. Also, replacement costs like hiring consultants would in any case add up to a huge expense and a lot of pressure on HR," said Dabur India HR chief. Company are identifying people who may be tempted to leave and are devising ways of retaining such talent – offering learning and development facilities for freshers, sending them abroad on one-year bonds (for six-months postings), etc

Intense Competition, Talent Crunch Push Companies to Hand Out 15-20% Pay Hikes

Indian employees have never had it so good. Intense competition and rising attrition levels are forcing companies to hand out 15-20% mid-term salary hikes. Reliance Industries, Marico and Dabur have offered mid-term increments and out-of-turn hikes of 15-20% to top performers in recent months. This is over and above the 15-20% salary hikes handed out during annual appraisals last year. This comes at a time when India Inc. is desperately trying to hold back talent, especially in telecom, IT, BPO and retail. A massive recruitment spree in sunrise sectors like BPO, telecom and retail has led to a demand-supply mismatch and mid-term hikes going up to 40%. Average attrition rates in IT have moved up to 22% from 18% and those in BPOs to 50% from 46%. In the manufacturing sector, talent exodus is averaging 8-12%. Several corporates are even offering bonuses and increments on a quarterly basis to top teams. An HR head said, "Although it is a short-term reaction, we have to react proactively to the market scenario and retain our performers. If one loses an employee, the average time taken for a new person to pick up the skills is up to six months, which is critical time lost for a company. Also, replacement costs like hiring consultants would in any case add up to a huge expense and a lot of pressure on HR," said Dabur India HR chief. Company are identifying people who may be tempted to leave and are devising ways of retaining such talent – offering learning and development facilities for freshers, sending them abroad on one-year bonds (for six-months postings), etc

Intense Competition, Talent Crunch Push Companies to Hand Out 15-20% Pay Hikes

Indian employees have never had it so good. Intense competition and rising attrition levels are forcing companies to hand out 15-20% mid-term salary hikes. Reliance Industries, Marico and Dabur have offered mid-term increments and out-of-turn hikes of 15-20% to top performers in recent months. This is over and above the 15-20% salary hikes handed out during annual appraisals last year. This comes at a time when India Inc. is desperately trying to hold back talent, especially in telecom, IT, BPO and retail. A massive recruitment spree in sunrise sectors like BPO, telecom and retail has led to a demand-supply mismatch and mid-term hikes going up to 40%. Average attrition rates in IT have moved up to 22% from 18% and those in BPOs to 50% from 46%. In the manufacturing sector, talent exodus is averaging 8-12%. Several corporates are even offering bonuses and increments on a quarterly basis to top teams. An HR head said, "Although it is a short-term reaction, we have to react proactively to the market scenario and retain our performers. If one loses an employee, the average time taken for a new person to pick up the skills is up to six months, which is critical time lost for a company. Also, replacement costs like hiring consultants would in any case add up to a huge expense and a lot of pressure on HR," said Dabur India HR chief. Company are identifying people who may be tempted to leave and are devising ways of retaining such talent – offering learning and development facilities for freshers, sending them abroad on one-year bonds (for six-months postings), etc

Intense Competition, Talent Crunch Push Companies to Hand Out 15-20% Pay Hikes

Indian employees have never had it so good. Intense competition and rising attrition levels are forcing companies to hand out 15-20% mid-term salary hikes. Reliance Industries, Marico and Dabur have offered mid-term increments and out-of-turn hikes of 15-20% to top performers in recent months. This is over and above the 15-20% salary hikes handed out during annual appraisals last year. This comes at a time when India Inc. is desperately trying to hold back talent, especially in telecom, IT, BPO and retail. A massive recruitment spree in sunrise sectors like BPO, telecom and retail has led to a demand-supply mismatch and mid-term hikes going up to 40%. Average attrition rates in IT have moved up to 22% from 18% and those in BPOs to 50% from 46%. In the manufacturing sector, talent exodus is averaging 8-12%. Several corporates are even offering bonuses and increments on a quarterly basis to top teams. An HR head said, "Although it is a short-term reaction, we have to react proactively to the market scenario and retain our performers. If one loses an employee, the average time taken for a new person to pick up the skills is up to six months, which is critical time lost for a company. Also, replacement costs like hiring consultants would in any case add up to a huge expense and a lot of pressure on HR," said Dabur India HR chief. Company are identifying people who may be tempted to leave and are devising ways of retaining such talent – offering learning and development facilities for freshers, sending them abroad on one-year bonds (for six-months postings), etc

M/s Zeman Ltd. deals in consumer goods. It employs 100 workers and 10 operative managers who give guidance and support to the workers while operating the machinery. The company has a policy of granting leave as per the requirements of the workers. Workers are generally granted leave on festivals and special occasions. Recently, at the Puja festival, it received a big order. Workers were keen to take Puja holidays while management was pressing hard for overtime. This matter was placed before the Personnel Manager, who called the meeting of operative manager by circulating a circular among the operative managers. Operative managers were told to inform the workers about the changes in the incentive plan which states payment of double wages for working overtime and triple wages for working on holidays. Workers, without any pressure, voluntarily took limited holidays and were able to increase their earnings by working overtime and on holidays. During the Board of Directors meeting, the Personnel Manager was asked to update the management to achieve higher output, meeting timely supplies without any confrontation with workers. The personnel manager replied, "I just used a carrot with a no-sticks approach".

M/s Zeman Ltd. deals in consumer goods. It employs 100 workers and 10 operative managers who give guidance and support to the workers while operating the machinery. The company has a policy of granting leave as per the requirements of the workers. Workers are generally granted leave on festivals and special occasions. Recently, at the Puja festival, it received a big order. Workers were keen to take Puja holidays while management was pressing hard for overtime. This matter was placed before the Personnel Manager, who called the meeting of operative manager by circulating a circular among the operative managers. Operative managers were told to inform the workers about the changes in the incentive plan which states payment of double wages for working overtime and triple wages for working on holidays. Workers, without any pressure, voluntarily took limited holidays and were able to increase their earnings by working overtime and on holidays. During the Board of Directors meeting, the Personnel Manager was asked to update the management to achieve higher output, meeting timely supplies without any confrontation with workers. The personnel manager replied, "I just used a carrot with a no-sticks approach".

M/s Zeman Ltd. deals in consumer goods. It employs 100 workers and 10 operative managers who give guidance and support to the workers while operating the machinery. The company has a policy of granting leave as per the requirements of the workers. Workers are generally granted leave on festivals and special occasions. Recently, at the Puja festival, it received a big order. Workers were keen to take Puja holidays while management was pressing hard for overtime. This matter was placed before the Personnel Manager, who called the meeting of operative manager by circulating a circular among the operative managers. Operative managers were told to inform the workers about the changes in the incentive plan which states payment of double wages for working overtime and triple wages for working on holidays. Workers, without any pressure, voluntarily took limited holidays and were able to increase their earnings by working overtime and on holidays. During the Board of Directors meeting, the Personnel Manager was asked to update the management to achieve higher output, meeting timely supplies without any confrontation with workers. The personnel manager replied, "I just used a carrot with a no-sticks approach".

M/s Zeman Ltd. deals in consumer goods. It employs 100 workers and 10 operative managers who give guidance and support to the workers while operating the machinery. The company has a policy of granting leave as per the requirements of the workers. Workers are generally granted leave on festivals and special occasions. Recently, at the Puja festival, it received a big order. Workers were keen to take Puja holidays while management was pressing hard for overtime. This matter was placed before the Personnel Manager, who called the meeting of operative manager by circulating a circular among the operative managers. Operative managers were told to inform the workers about the changes in the incentive plan which states payment of double wages for working overtime and triple wages for working on holidays. Workers, without any pressure, voluntarily took limited holidays and were able to increase their earnings by working overtime and on holidays. During the Board of Directors meeting, the Personnel Manager was asked to update the management to achieve higher output, meeting timely supplies without any confrontation with workers. The personnel manager replied, "I just used a carrot with a no-sticks approach".

M/s Zeman Ltd. deals in consumer goods. It employs 100 workers and 10 operative managers who give guidance and support to the workers while operating the machinery. The company has a policy of granting leave as per the requirements of the workers. Workers are generally granted leave on festivals and special occasions. Recently, at the Puja festival, it received a big order. Workers were keen to take Puja holidays while management was pressing hard for overtime. This matter was placed before the Personnel Manager, who called the meeting of operative manager by circulating a circular among the operative managers. Operative managers were told to inform the workers about the changes in the incentive plan which states payment of double wages for working overtime and triple wages for working on holidays. Workers, without any pressure, voluntarily took limited holidays and were able to increase their earnings by working overtime and on holidays. During the Board of Directors meeting, the Personnel Manager was asked to update the management to achieve higher output, meeting timely supplies without any confrontation with workers. The personnel manager replied, "I just used a carrot with a no-sticks approach".

Ford has always attracted and nurtured capable managers and technicians, but it has failed to do the same for change agents and leaders. So, as part of the automaker’s cultural overhaul, Ford is embarking on a sweeping attempt to mass-manufacture leaders. It wants to build an army of “warrior entrepreneurs” — people who have the courage and skills to topple old ideas, and who believe in change passionately enough to make it happen. Ford Motor Company announced key changes to its senior management team as it continues to strengthen its automotive business, improve the company’s operational fitness, and accelerate a strategic shift to capitalize on emerging opportunities. In announcing the leadership changes, Ford President and CEO Jim Hackett said Form is “very fortunate to have an experienced and committed executive team in place to significantly strengthen their business while building towards their vision of becoming the world’s most trusted mobility company. Their objective is to lead business to new levels of operational fitness, product and brand excellence and profitability”. Ford views grassroot leadership as the best vehicle for creating a successful business

Ford has always attracted and nurtured capable managers and technicians, but it has failed to do the same for change agents and leaders. So, as part of the automaker’s cultural overhaul, Ford is embarking on a sweeping attempt to mass-manufacture leaders. It wants to build an army of “warrior entrepreneurs” — people who have the courage and skills to topple old ideas, and who believe in change passionately enough to make it happen. Ford Motor Company announced key changes to its senior management team as it continues to strengthen its automotive business, improve the company’s operational fitness, and accelerate a strategic shift to capitalize on emerging opportunities. In announcing the leadership changes, Ford President and CEO Jim Hackett said Form is “very fortunate to have an experienced and committed executive team in place to significantly strengthen their business while building towards their vision of becoming the world’s most trusted mobility company. Their objective is to lead business to new levels of operational fitness, product and brand excellence and profitability”. Ford views grassroot leadership as the best vehicle for creating a successful business

Ford has always attracted and nurtured capable managers and technicians, but it has failed to do the same for change agents and leaders. So, as part of the automaker’s cultural overhaul, Ford is embarking on a sweeping attempt to mass-manufacture leaders. It wants to build an army of “warrior entrepreneurs” — people who have the courage and skills to topple old ideas, and who believe in change passionately enough to make it happen. Ford Motor Company announced key changes to its senior management team as it continues to strengthen its automotive business, improve the company’s operational fitness, and accelerate a strategic shift to capitalize on emerging opportunities. In announcing the leadership changes, Ford President and CEO Jim Hackett said Form is “very fortunate to have an experienced and committed executive team in place to significantly strengthen their business while building towards their vision of becoming the world’s most trusted mobility company. Their objective is to lead business to new levels of operational fitness, product and brand excellence and profitability”. Ford views grassroot leadership as the best vehicle for creating a successful business

Ford has always attracted and nurtured capable managers and technicians, but it has failed to do the same for change agents and leaders. So, as part of the automaker’s cultural overhaul, Ford is embarking on a sweeping attempt to mass-manufacture leaders. It wants to build an army of “warrior entrepreneurs” — people who have the courage and skills to topple old ideas, and who believe in change passionately enough to make it happen. Ford Motor Company announced key changes to its senior management team as it continues to strengthen its automotive business, improve the company’s operational fitness, and accelerate a strategic shift to capitalize on emerging opportunities. In announcing the leadership changes, Ford President and CEO Jim Hackett said Form is “very fortunate to have an experienced and committed executive team in place to significantly strengthen their business while building towards their vision of becoming the world’s most trusted mobility company. Their objective is to lead business to new levels of operational fitness, product and brand excellence and profitability”. Ford views grassroot leadership as the best vehicle for creating a successful business

Ford has always attracted and nurtured capable managers and technicians, but it has failed to do the same for change agents and leaders. So, as part of the automaker’s cultural overhaul, Ford is embarking on a sweeping attempt to mass-manufacture leaders. It wants to build an army of “warrior entrepreneurs” — people who have the courage and skills to topple old ideas, and who believe in change passionately enough to make it happen. Ford Motor Company announced key changes to its senior management team as it continues to strengthen its automotive business, improve the company’s operational fitness, and accelerate a strategic shift to capitalize on emerging opportunities. In announcing the leadership changes, Ford President and CEO Jim Hackett said Form is “very fortunate to have an experienced and committed executive team in place to significantly strengthen their business while building towards their vision of becoming the world’s most trusted mobility company. Their objective is to lead business to new levels of operational fitness, product and brand excellence and profitability”. Ford views grassroot leadership as the best vehicle for creating a successful business