2015/16 INDIA SALARY & EMPLOYMENT OUTLOOK

OUTLOOKS A L A R Y & E M P L O Y M E N T

2015/16 INDIA

Worldwide leaders in specialist recruitmentwww.michaelpage.co.in

2015/16 INDIA SALARY & EMPLOYMENT OUTLOOK

THE MICHAEL PAGE SALARY & EMPLOYMENT OUTLOOK COMBINES QUALITATIVE AND QUANTITATIVE RESEARCH, AS WELL AS EXPERT INSIGHTS AND COMMENTARY FROM OUR EXTENSIVE INVOLVEMENT IN THE SENIOR EXECUTIVE AND PROFESSIONAL EMPLOYMENT MARKET.

“

“

2015/16 INDIA SALARY & EMPLOYMENT OUTLOOK

INTRODUCTIONSEBASTIEN HAMPARTZOUMIAN

Sébastien Hampartzoumian Senior Managing Director, Singapore and India

Welcome to the 2015/16 Michael Page Salary & Employment Outlook. This year’s survey was completed by more than 240 employers and covers a range of trends and issues relevant to today’s recruitment landscape.

The Michael Page Salary & Employment Outlook combines qualitative and quantitative research, as well as expert insights and commentary from our extensive involvement in the senior executive and professional employment market. Our clients come from all major industry sectors and range from market-leading multinationals to small and medium-sized enterprises.

Our specialist approach to recruitment sees us have dedicated teams of recruitment professionals servicing all of our industry sectors or functions. Similarly, this report provides in-depth market insights as well as detailed salary guides with tables divided into job types, years of experience or company size and state, to show accurate and concise salary ranges.

Alongside this report, we also provide a range of salary tools, advice and information on our website including; salary calculators, the latest salary rates and a salary appraisal service. Go to michaelpage.co.in/salary-centre to find these features.

Thank you to everyone who contributed to this year’s Salary & Employment Outlook, I hope you find it helpful and informative. We welcome your feedback and encourage you to contact us at michaelpage.co.in/contact-us for further information and advice.

2015/16 INDIA SALARY & EMPLOYMENT OUTLOOK

MARKET OVERVIEW

2015/16 INDIA SALARY & EMPLOYMENT OUTLOOK

We are seeing the diversion of talent to e-commerce from other sectors such as retail, FMCG and FMCD.

“

“

2015/16 INDIA SALARY & EMPLOYMENT OUTLOOK 7

With the Indian market continuing to grow, confidence across the board is high, and this is further bolstered by the high levels of investment and interest we have observed in emerging sectors such as e-commerce and the continued strength of areas such as healthcare and infrastructure. However, the infrastructure sector is yet to deliver the returns that were expected mainly due to delay in execution of policies but we anticipate these organisations to shore up operations and funding over the coming quarters.

The half-year point marks 18 months since the new government took office, and there is an expectation that we will start seeing the results of their initiatives soon, such as the “Make in India” campaign which seeks to encourage investment in India’s manufacturing sectors as a means of realising the potential of India’s resources and labour pool.

One sector that has been the recipient of high levels of investment and attention is the e-commerce sector, which is experiencing rapid growth and has become very attractive to candidates. As a result, we are seeing the diversion of talent to e-commerce from other sectors such as retail, FMCG and FMCD. The question now is whether this massive investment, in terms of both money and people, is sustainable or whether we will start to see consolidation over the coming quarters. The healthcare sector is also experiencing a period of solid growth at an average rate of 9% according to the India Brand Equity Foundation (IBEF). The relative low cost of pharmaceutical talent in India, combined with the market dominance of cheaper generic medicines and encouragement from the government to manufacture more APIs, semi-finished and finished pharmaceutical products in India, has helped facilitate this growth.

In regards to salary and remuneration, 99% of respondents indicated that their direct employees will receive a salary increase in the next 12 months, and 62% of these increases are in the range of 10-15%. We are also seeing a strong reward culture, with 86% of respondents stating that their direct employees will receive a bonus as part of their remuneration, with almost half (49%) of these again in the 10-15% range. This is consistent with the overall trend we are seeing of companies making more efforts to retain their good employees and

stem talent loss. In addition, we have observed a large numbers of counter offers extended to employees who are considering external offers. However, we do advise workers to consider more than just the salary when weighing up offers as, once your decision is made to move on it, is rarely a good option to be retained solely for more money. Instead, workers should consider the role, the employer and the growth potential on offer when making a decision.

When looking at the factors that influence a candidate’s opinion of a potential employer and their decision to accept a new role, brand reputation, career progression and international opportunity are consistently mentioned. In order to attract and retain top talent, particularly when it comes to younger workers, organisations will need to be able to present candidates with a clear path of career growth that includes opportunities for development, overseas secondments and promotion. Companies should also invest time in ensuring they have a clearly defined brand strategy and strong online presence in order to appeal to candidates’ desire to work for a recognisable and reputable organisation.

A strong online presence, particularly on social media, also helps facilitate talent acquisition as Indian workers become increasingly comfortable utilising platforms such as LinkedIn to grow their careers. These platforms allow workers to passively ‘keep tabs’ on brands they may aspire to work with, while also allowing hiring managers to easily search for specialist or niche skills. Currently, we are seeing a large demand for workers with skills in analytics and big data, financial/product control and sales development, with workers who possess these skills able to command a premium salary.

One of the most interesting shifts we are observing is the move towards aptitude-based hiring. Where traditionally India workplaces have given preference to experience and length of service when considering candidates, we are seeing more and more calls for hiring managers to evaluate candidates purely on their own merit and abilities, regardless of how their experience stacks up. While this is a challenge to many entrenched attitudes towards hiring, this is reflective of the increasing modernisation of attitudes towards work in India.

MARKET OVERVIEW

KEY INSIGHTS

StrongerSlightlyweaker

22%Weaker5%

Slightlystronger

22%

6%

Steady45%

Strength of current overall hiring activity as compared to the last 12 months

Top 5 skills in demand*

* Respondents could select more than one answer.

Analytics & Big Data52%

Sales Development42%

Product Management22%

Project Management22%

Financial Control22%

For companies increasing headcount, how much will it increase by?

38%1-10%

36%11-20%

11%21-30%

6%31-40%

4%41-50%

5%More than 50%

Companies expecting to increase headcount in the next 12 months

No16%

Unsure8%

Yes76%

RECRUITMENT ACTIVITY

MARKET OVERVIEW

2015/16 INDIA SALARY & EMPLOYMENT OUTLOOK

KEY INSIGHTS

SALARY & REMUNERATION

Average bonus as a percentage of total salary

19%Less than 10%

49%10-15%

19%16-20%

4%26% or above

9%21-25%

Do direct reports receive a bonus?

No14%

Yes86%

Average salary increase percentage that direct reports can expect to get

25%Less than 10%

62%10-15%

11%16-20%

1%21-25%

1%26% or above

Do direct reports receive a salary increase?

No1%

Yes99%

MARKET OVERVIEW

2015/16 INDIA SALARY & EMPLOYMENT OUTLOOK 9

2015/16 INDIA SALARY & EMPLOYMENT OUTLOOK

2015/16 INDIA SALARY & EMPLOYMENT OUTLOOK

KEY INSIGHTS

Top talent attraction methods used*

* Respondents could select more than one answer.

60%Strong company culture

50%Structured career progression

44%Financial incentives

42%Recognition and rewards

34%Work/life balance initiatives

33%Global career opportunities

29%Training and mentoring partnerships

Work/life balance options offered in current company*

6%My company does not offer any work/life balance options at the moment

61%Flexible working hours

11%Sabbaticals

29%Increased maternity/paternity leave

41%Team building/offsite activities

13%Alternate leave options (e.g. volunteering)

42%Work from home options

16%

Other: Employee engagement activities, career breaks, early dismissal from work, compulsory leave, 5 day work week

* Respondents could select more than one answer.

Key reasons why employees will leave their current company

Improve salary36%

Gain more seniority20%

Broaden experience/opportunity to learn21%

Overseas opportunities8%

Other: Company culture, higher positions, better career progression7%

Better training & development2%

Achieve better work/life balance6%

Top talent retention methods used*

* Respondents could select more than one answer.

63%Recognition and rewards

60%Structured career progression

48%Financial incentives

36%Work/life balance initiatives

32%Global career opportunities

47%Training and mentoring partnerships

43%Strong company culture

MARKET OVERVIEW

ATTRACTION & RETENTION

2015/16 INDIA SALARY & EMPLOYMENT OUTLOOK

Gurgaon10th floor , Tower C, Building No. 8, DLF Phase - IIDLF CybercityHaryana Gurgaon 122002Tel +91 1244525500Fax +91 244525555enquiries@michaelpage.co.in

Mumbai5th Floor, 2 North Avenue,Maker Maxity, Bandra-Kurla Complex, Bandra (E),Mumbai BKC 400051Tel +91 2242363300Fax +91 2242363301enquiries@michaelpage.co.in

CONTACT US

Get Connected. Stay Ahead.