Annual Compensation Trends Report FY 2014-15

8/11/2019 Annual Compensation Trends Report FY 2014-15

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Annual

Compensation & Benefits

Trends Survey

IndiaFY 2014-15

Human Capital Consulting

March 2014


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Table of ContentScope, Approach & Methodology

Executive Summary

Overall Industry Report

Detailed Sector-wise Analysis

About Deloitte Human Capital Consulting

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Executive Summary




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2014 Deloitte Touche Tohmatsu India Private Limited

Survey DetailsScope of the Survey

Increment & Variable

Pay projections for

FY 2014-15 and

comparison with FY

2013-14

Key Benefits given

across sectors

Attrition rates,

key reasons for

attrition and

mitigation

measures

Managing and

Rewarding Critical

Talent

Key Human

Resource

Challenges

faced by

Organizations

The Deloitte Compensation

Trends Survey is an annual

study conducted by Human

Capital Consulting.

The objective of the study is

to understand the key

compensation and benefits

trends across sectors in the

Indian market.

2014 Deloitte Touche Tohmatsu India Private Limited4

In this edition, the on-line survey was

launched for the firsttime and more than

60% of the companieshave submitted datathrough the on-line

portal

This is the fourthedition of the Annual

survey

Companies from morethan 18sectors have

participated this year ;detailed consolidatedreport prepared for 13

sectors

Data was collectedfrom January to

March, 2014


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SectorsCovered

Auto & Auto

ComponentsBFSI Chemical Consumer Business

Engineering &

Manufacturing

Logistics Media & Advertising Retail Others

Energy & Natural

ResourcesHi-Tech IT enabled Services

Infrastructure & Real

Estate

Pharma, Life Sciences

& Health Care


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Survey DetailsSurvey Methodology

Design the Survey InstrumentThe parameters of the study were finalized and astructured questionnaire was designed as aprimary data collection tool

Finalize the Target BasketThe sectors covered in the study were finalizedalong with the leading organizations from eachsector

Invite and Seek Consent for ParticipationA formal invitation e-mail and online questionnairewas sent to the Human Resources in the chosenorganizations requesting for participation

Collect and Validate DataThe responses received from all participantswere validated and checked for accuracy andintended interpretation

12

34

Generate the Compensation TrendsSurvey Report(FY 2014-15)

Analyze DataThe data received was collated and analyzedto get detailed insights on sector wisepractices, compensation and benefits trends

5

6



7/132 2014 Deloitte Touche Tohmatsu India Private Limited

Top

Management

SeniorManagement

Middle

Management

Junior

Management

The most senior executive in the organization (CEO), coordinating a full range of

functions, providing leadership, overall direction and control of company operations.

Also, includes key executives (direct reportees to CEO) within the organization, headingkey functions, businesses and geographies

Executives who directly report to the Top Management, and manage a range of

functions. However, they are not regarded as Top Management. This also includes

direct reportees to different key functional, business and geographical heads

Includes executives who directly report to Senior Management, with supervisoryresponsibility for a sub-function, part of a business, geography etc.

Includes supervisory staff usually involved in the day to day functioning of a small

team (First Level of Management Cadre). Also, includes entry level employees with

professional qualification

.

Includes non-management staff who work as individual contributors reporting to

Management

Survey DetailsManagement Definitions

Clerical

Cadre

10P/The lower decile position

(where one-tenth of the

sample has lower data)

25P/

The lower quartile position

(where one quarter of thesample has lower data)

50P/The middle position (where

half of the sample has lower

and half has higher data)

75P/The upper quartile position

(where three-quarters of the


90P/The upper decile position

(where nine-tenth of the


Percentile Definitions

Top Performers: Employees who are key

contributors, demonstrate high performance,

may be qualified for broader roles within the

same profession and have reached the

potential to move upward in a management

capacity

High Potentials: Employees who have been

identified as having the potential, ability and

aspiration for higher positions within the

company

Key Positions:Roles in the organization that

have a maximum impact on the business,

require expertise in terms of

technical knowledge and are difficult to

replace / find talent for in the external market

Critical Talent Definitions




** Others include companies in Hospitality, Professional Services, Agriculture, Aviation, Export and Social Services sectors. Considering the limited number of responsesfrom these sectors within the specified timelines, separate sector reports have not been published

209 organizations from 18 sectors have participated in the Compensation Trends Survey for FY 2014-15

5.3%(11) 5.3%(11)

8.6%(18)

4.8%(10)

3.8%(8)

12.4% (26)

3.8% (8)

10.5% (22)

2.9% (6)

3.8% (8)

10.5% (22)

4.3% (9)

8.6% (18)

15.3%(32)

Chemical Consumer

Business

Energy Hi-Tech ITeS Infrastructure& Real Estate

LogisticsAuto & AutoComp.

BFSI Media &Advertising

Pharma, Life

SciencesRetail Others**

Survey DetailsParticipant Profile

Annual

Revenue

Employee

Strength(20)

(38)

(21)

(44)

Engineering &

Manufacturing

12.0%

16.0%

10.0%

18.0%

44.0%

1000 Crore

(92)

(25)

(33)

(21)

(38)

23.0%

27.3%21.1%

10.0%

10.5%

8.1%< 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

(21)

(44)

(22) (48)

(57)

(17)


Participant List is for private circulation amongst participants of

Human Capital Compensation & Benefits Trends Survey FY 2014-15


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Executive Summary




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Executive SummaryKey Findings

The average variable pay percent across sectors is

projected at 18.5% in FY 2014-15, which is 1.2%points

higher than the previous FY 2013-14 (17.3%)

The average voluntary attrition rate across sectors for FY

2013-14 is 13.4%, 0.8% points lower than the previous FY

2012-13 (14.2%)

Organizations across sectors attribute Better Career

Prospects, Better Pay Opportunities and Personal

Reasons as the top three reasons for attrition

Career Management, Developing Potential Leaders and

Retaining and Rewarding Critical Talent are the top three

HR challenges faced by organizations across sectors

The average salary increment across sectors is projected

at 10.3% in FY 2014-15, which is 0.3%points lower than

the previous FY 2013-14 (10.6%)

01

02

03

04

05


The highest projectedincrement is in thePharma sector at

12.4%, and the lowestprojection is observedin the Retail sector at

9.1%

The highest projectedvariable pay is in the

BFSI sector at20.2%, while the

lowest is projectedin the Logisticssector at 16.9%

The highest attritionis projected in the

ITeS sector at 16.4%and the lowest is inthe Logistics sector

at 10.5%

The highest attritionis projected at the

Clerical Cadre in theITeS sector, followedby the Clerical Cadre

in the Media &Advertising Sector



Executive SummaryIndustry Snapshot

Sectors

Average Increments Average Variable Pay

Actual

FY 2013-14

Projected

FY 2014-15Change Actual

FY 2013-14

Projected

FY 2014-15Change

Auto & Auto components 10.3 9.9 -0.4 17.3 17.6 0.3

Banking & Financial Services 9.7 9.5 -0.2 19.8 20.2 0.4

Chemical 11.9 11.6 -0.3 17.4 17.8 0.4

Consumer Business 10.9 10.6 -0.3 19.4 19.8 0.4

Engineering & Manufacturing 11.2 10.9 -0.3 17.8 18.2 0.4

Energy 10.0 9.7 -0.3 17.2 17.4 0.2

Hi-Tech 11.7 11.5 -0.2 18.6 18.8 0.2

Information Technology Enabled

Services12.3 12.0 -0.3 18.2 18.5 0.3

Infrastructure & Real Estate 9.7 9.4 -0.3 16.8 17.1 0.3

Logistics 9.4 9.2 -0.2 16.6 16.9 0.3

Media & Advertising 9.8 9.6 -0.2 17.2 17.5 0.3

Pharmaceutical, Life Sciences &

Health Care12.6 12.4 -0.2 18.1 18.4 0.3

Retail 9.3 9.1 -0.2 18.3 18.5 0.2

Overall Industry 10.6 10.3 -0.3 17.3 18.5 1.2

In %

Average Projected Increments for

Key Positions and Performers

13.8%

16.2%

14.7%

High Potentials

Top Performers

Key Positions

Average Projected Increments

based on Organization Revenue

9.8%

10.1%

10.3%

< 100 Crore

100300 Crores

300500 Crore

10.2%

10.6%

5001000 Crore

> 1000 Crore



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13/132 2014 Deloitte Touche Tohmatsu India Private Limited 2014 Deloitte Touche Tohmatsu India Private Limited

Overall Industry AnalysisAverage Annual Increments FY 2014-15 (Projections) vis--vis FY 2013-14 (Actuals)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

OverallIndustry

Auto BFSI Chem CB Eng Energy Hi-Tech ITeS Infra Log Media Pharma Retail

FY 2013-14 FY 2014-15

10.6 10.3 9.7 11.9 10.9 11.2 10.0 11.7 12.3 9.7 9.4 9.8 12.6 9.3

10.3 9.9 9.5 11.6 10.6 10.9 9.7 11.5 12.0 9.4 9.2 9.6 12.4 9.1

FY 2013-14

FY 2014-15

In %

The overall

average annual

increment for FY

2014-15 is

projected at

10.3%. Overallthe increment has

decreased by

0.3%points fromFY 2013-14

1

The Retail

sector maintains a

conservative

estimate given the

overall mood of

the economy and

is expected to

have the lowest

average incrementat 9.1%

3

The highest

decrease in

projected

increment isobserved in the

Auto & Auto

Components sector2

In Logistics,

Retail and

Infrastructure

sectors, the

projected

increment is

significantly lower

than the industry

average

5

In Pharma, ITeS,

Chemical and Hi-

Tech sectors, the

projectedincrement is

significantly higher

than the industry

average

4

13



Overall Industry AnalysisAnnual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 7.2 8.8 10.1 11.5 13.0 10.0

JM 7.4 9.0 10.3 11.9 13.6 10.2

MM 7.4 8.7 10.4 12.3 13.8 10.6

SM 7.5 9.3 10.6 12.4 14.3 10.5

TM 8.1 9.6 11.4 13.2 15.1 11.3

Level-wise Increment Percentiles

In %

Comparison of Level-wise Average Increments Across Sectors

10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.411.3 10.6 10.7

9.811.2 11.9

9.3 8.7 9.611.8

8.9

10.6 10.0 9.6

11.5 10.7 10.89.9

11.412.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.910.8 11.1

10.3

11.712.6

9.7 9.410.2

12.6

9.3

11.310.8 10.3

12.611.7 11.8

10.7

12.913.3

10.59.9

10.4

13.2

9.5

Overall

Industry


TM

SM

MM

JM

CL


The average increment atClerical Cadre and Junior

Management level isexpected to be lower than

the overall averageincrement at 10.3%

The average increment atthe Top Managementlevel in the ITeS and

Pharmaceutical sectorsis significantly higher

than other sectors

The Retail sectorprojected the lowest

average increment at theClerical Cadre (8.6%)

The averageincrement at the TopManagement level issignificantly higher

than the overall

average increment at10.3%



Overall Industry AnalysisAverage Annual Increments FY 2014-15 (Projections) vis--vis FY 2013-14 (Actuals)

In % 10P 25P 50P 75P 90P Average

FY 2013-14 7.2 9.1 10.7 12.4 15.2 10.6

FY 2014-15 7.1 9.0 10.2 12.2 15.0 10.3

Average Increments Across Levels

10.0

10.2

10.6 10.5

11.3

10.2

10.4

10.9

10.7

11.5

9.0

9.5

10.0

10.5

11.0

11.5

12.0

Clerical JM MM SM TM

FY 2014-15 FY 2013-14

In %


Higher increments acrosssectors is expected to be

around the 15% mark.

However, on the lowerside, the increments have

also reduced to 7.1%

In comparison toother percentiles, a

significant reduction

has been observed inthe median (50P)

increment

Average annual

increment percentageshave reduced marginally

across levels; thereduction is highest at

the Middle Managementlevel

Majority of the

organizations havegiven increments toall their employees inthe range of 7.1-15%,

across all levels


16/132 2014 Deloitte Touche Tohmatsu India Private Limited 2014 Deloitte Touche Tohmatsu India Private Limited

Overall Industry AnalysisAverage Annual Variable Pay FY 2014-15 (Projections) vis--vis FY 2013-14 (Actuals)

0.0

5.0

10.0

15.0

20.0

25.0

OverallIndustry


FY 2013-14 FY 2014-15

17.3 17.3 19.8 17.4 19.4 17.8 17.2 18.6 18.2 16.8 16.6 17.2 18.1 18.3

18.5 17.6 20.2 17.8 19.8 18.2 17.4 18.8 18.5 17.1 16.9 17.5 18.4 18.5

FY 2013-14

FY 2014-15

In %

The overall

average annual

variable pay for

FY 2014-15 is

projected at

18.5%. Overall,the variable pay

has increased by

1.2%points fromFY 2013-14

1

The Logistics

sector maintains a

conservative

estimate and is

observed to have

the lowest

projected average

variable pay at

16.9%

3

The highest

increase in the

projected variable

pay is observed in

the BFSI,Chemicals,

Consumer Business

and Engineering &

Manufacturing

sectors

2In the Infrastructure

& Real Estate and

Energy & Natural

Resources sectors,

the projected

variable pay is

significantly lower

than the industryaverage

5

In the BFSI and

Consumer

Business sectors,

the projectedvariable pay is

significantly higher

than the industry

average

4

16

The average variable



Overall Industry AnalysisAnnual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 8.2 10.4 12.2 15.2 18.5 12.1

JM 10.7 13.5 16.6 20.2 23.4 16.7

MM 13.1 16.1 18.7 24.3 29.6 18.9

SM 15.2 18.6 22.3 28.3 34.0 22.4

TM 16.8 20.2 24.0 30.1 36.6 24.2

Level-wise Variable Pay Percentiles

In %

Comparison of Level-wise Average Variable Pay Across Sectors

12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.718.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7

16.4 16.4

18.9 17.420.2

17.919.7

18.117.3

18.7 18.617.3 16.7

17.2 18.6 18.7

22.4 21.6

26.5

21.7

24.3

22.9 20.9 23.7 23.2 20.1 20.221.3 23.4 23.2

24.2 25.3

29.5

25.6

27.627.2

25.2

27.426.9

23.6 23.225.8

27.1 26.8

Overall

Industry


TM

SM

MM

JM

CL


The average variablepay at the ClericalCadre and Junior

Management levels isexpected to be lower

than the overallaverage variable pay

at 18.5%

The averageincrement at the Top

Management level inthe BFSI sector is

significantly higherthan other sectors

The Logistics sectorprojected the lowestaverage variable at

the Clerical Cadre(11.1%)

The averageincrement at the TopManagement level issignificantly higher

than the overallaverage increment at

18.5%



Overall Industry AnalysisAverage Annual Variable Pay FY 2014-15 (Projections) vis--vis FY 2013-14 (Actuals)


FY 2013-14 7.5 13.1 17.4 27.0 35.6 17.3

FY 2014-15 8.1 13.4 18.6 28.2 36.4 18.5

Average Variable Pay Across Levels

12.1

16.7

18.9

22.4

24.2

11.6

16.217.6

21.323.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0


FY 2014-15 FY 2013-14

In %


Higher variable payacross sectors is

expected to be around

the 36% mark.Similarly, on the lowerside, the variable payhas also increased to

8.1%

In comparison to otherpercentiles, a

significant increase

has been observed inthe median (50th

percentile) and 75thpercentile variable pay

Average annualvariable pay

percentages haveincreased marginally

across levels; theincrease is highest at

the MiddleManagement level

Majority of theorganizations havegiven variable pay

to all theiremployees in the

range of 8.1-36.4%,across all levels


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Overall Industry AnalysisVoluntary Attrition Analysis

13.1

18.6

14.616.3

14.2 13.9

20.2

26.2

15.6

12.8

22.3

15.6 15.2

9.3

12.210.4

8.29.2 8.7

12.6 13.210.2

9.1

12.8 11.9 11.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0


CL JM MM SM TM

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

OverallIndustry


FY 2012-13 FY 2013-14

14.2 11.6 15.3 13.7 13.5 12.2 12.6 15.6 17.8 14.3 11.4 17.2 14.1 13.8

13.4 10.6 14.0 12.2 12.5 11.8 11.5 14.2 16.4 13.2 10.5 15.6 12.8 13.1

FY 2012-13

FY 2013-

14

In %

Comparison of Level-wise Voluntary Attrition Rate Across Sectors

Voluntary Attrition Rate Across Sectors

In %




Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent

Top three Reasons for Attrition

Better Career Prospects

Better Pay Opportunities

Personal Reasons (Marriage, Health, Family, Relocation etc.)

Top three Measures Taken to Curb Attrition

Recognition Awards (Monetary /Non-monetary)

Clearly defined Career Paths & Succession Plans

Development Programs for High Potentials and Top Performers

Top three Methods to Manage and Reward Critical Talent

Faster Growth Opportunities

Better Performance Linked Incentives

Skill Enhancement Training Programs

Overall Industry AnalysisAttrition Trends Reasons and Mitigation Measures


Highest attritionrate has been

recorded at theClerical Cadre inthe ITeS sector

(26.2%)

The Logisticssector has reportedthe lowest overallattrition at 10.5%

and also the lowestat the Clerical

Cadre at (12.8%)

Attrition rates havereduced marginallyacross sectors.

However, it continuesto be a concern in theBFSI, Hi-Tech, ITeS

and Media &Advertising sectors

The ConsumerBusiness sector hasreported the least

attrition at the TopManagement level

(8.2%)



Overall Industry AnalysisKey HR Challenges

Retaining & Rewarding the Critical TalentOrganizations are maximizing their rewards spend by identifying,

segmenting and rewarding individuals in the organization who have

maximum impact on the business

Career ManagementOrganizations are investing in a combination of structured planning

and identifying the employee aspirations to achieve career goals of

the employees in a changing economy

Attracting TalentOrganizations are increasingly focused on hiring talented

individuals as a critical ingredient in their talent acquisition process

Developing Potential LeadersOrganizations are developing potential leaders to lead with vision,

passion and integrity, inspiring the people around them to achieve

goals even in challenging times

Employee EngagementOrganizations support employee engagement to ensure that theemployees are committed to the organizations goals, motivated to

contribute to the organization's success, at the same timeenhancing their own sense of well-being

Developing

Potential Leaders

Career

Management

Attracting Talent

Average Age of Employees

31Clerical/

JM/

MM/

SM/

TM/

31

37

42

47

HR

Challenges

Measures Taken to Address HR Challenges



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Auto & AutoComponents


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Auto & Auto ComponentsExecutive Summary: Key Findings

The average variable pay percent in this sector is



The average voluntary attrition rate for this sector in FY

2013-14 is 10.6%. Highest attrition rate is observed for

the Clerical Cadre at 13.1%

Organizations attribute Better Career Prospects, Personal

Reasons and Better Utilization of Current Skills as the

main reasons for attrition

Employee Engagement, Developing Potential Leaders

and Retaining and Rewarding the Critical Talent are the

key HR challenges faced by this sector

The average salary increment in this sector is projected at

9.9% in FY 2014-15, which is 0.4%points lower than the

previous FY 2013-14 (10.3%)

Employee

Strength

Employee

Strength

18.2%

81.8%

1000 Crore

36.4%

45.5%

9.1%

9.1% < 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

01

02

03

04

05

Annual

Revenue

Employee

Strength

25

The average The average


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Auto & Auto ComponentsAnnual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 7.4 8.7 9.6 11.2 13.2 9.5

JM 7.6 8.9 9.8 11.5 13.6 9.6

MM 7.7 9.1 10.1 11.8 13.8 10.0

SM 8.1 9.0 10.4 12.7 14.5 10.2

TM 8.2 9.3 10.7 12.7 15.1 10.8

In %


10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.411.3 10.6 10.7

9.811.2 11.9

9.3 8.7 9.611.8

8.9

10.6 10.0 9.6

11.5 10.7 10.89.9

11.412.4

9.5 9.0 9.4

12.4

9.2

10.510.2 10.4

11.9 10.8 11.110.3

11.7

12.6

9.7 9.410.2

12.6

9.3

11.310.8 10.3

12.611.7 11.8

10.7

12.913.3

10.59.9

10.4

13.2

9.5

OverallIndustry


TMSM

MM

JM

CL


26

gincrement at Clerical

Cadre and JuniorManagement level isexpected to be lower


9.9% in this sector

The averageincrement at Top

Management level issignificantly higher

than the overallindustry averageincrement (10.3%)

Junior and MiddleManagement levelsreported maximumdecrease in average

increments comparedto the overall

industry

Senior Managementlevel reported minimum

decrease in averageincrements compared to

the overall industry


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Auto & Auto ComponentsAverage Annual Increments FY 2014-15 (Projections) vis--vis FY 2013-14 (Actuals)


FY 2013-14 7.5 9.1 10.5 12.7 15.3 10.3

FY 2014-15 7.3 8.7 9.8 12.5 15.0 9.9


9.59.6

10.0

10.2

10.8

9.7 9.7

10.210.3

11.0

8.5

9.0

9.5

10.0

10.5

11.0

11.5


FY 2014-15 FY 2013-14

In %

27

Higher increments acrossthis sector is expected to

be around the 15.0%

mark. However, on thelower side, the

increments have alsoreduced to 7.1%


significant reductionhas been observed inthe median (50P)

increment

Average annual

increment percentageshave reduced marginally

across levels; thereduction is highest at

the Middle Managementlevel

Majority of the

organizations havegiven increments toall their employees in

the range of 7.3-15.0%, across all

levels

The average variable pay The average variable


28/132


Auto & Auto ComponentsAnnual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 9.8 11.3 12.4 15.3 17.8 12.5

JM 11.4 13.8 15.9 19.2 22.1 15.7

MM 12.8 15.3 17.5 22.7 27.5 17.4

SM 15.9 18.6 21.6 27.2 32.6 21.6

TM 16.8 21.3 25.4 30.8 35.8 25.3

In %


12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.718.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7

16.4 16.4

18.9 17.420.2

17.919.7

18.117.3

18.7 18.617.3 16.7

17.218.6 18.7

22.4 21.6

26.5

21.724.3

22.920.9

23.7 23.220.1 20.2

21.323.4 23.2

24.2 25.3

29.5

25.6

27.627.2

25.2

27.426.9

23.6 23.225.8

27.1 26.8

OverallIndustry Auto BFSI Chem CB Eng Energy Hi-Tech ITeS Infra Log Media Pharma Retail

TMSM

MM

JM

CL


28

The average variable payat Clerical Cadre, Juniorand Middle Management

levels is expected to belower than the overall

average variable pay at17.6% in this sector

The average variablepay at Senior and TopManagement level is

significantly higher thanthe overall industryaverage variable pay

(18.5%)

The Clerical Cadre andTop Managementlevels reported an

increase in averagevariable pay comparedto the overall industry

The Clerical Cadrereported minimumincrease in average

variable pay comparedto the overall industry


29/132


Auto & Auto ComponentsAverage Annual Variable Pay FY 2014-15 (Projections) vis--vis FY 2013-14 (Actuals)


FY 2013-148.8 12.6 17.2 26.2 34.8 17.3

FY 2014-15 9.6 13.5 17.4 26.7 35.4 17.6


12.5

15.7

17.4

21.6

25.3

11.9

13.5

16.5

20.1

24.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0


FY 2014-15 FY 2013-14

In %

29

Higher variable payacross this sector is


the 35% mark. However,on the lower side, thevariable pay has also

increased to 9.6%

In comparison toother percentiles, asignificant increase

has been observed inthe 25thpercentile

variable pay

Average annual variable

pay percentages haveincreased marginally

across levels; theincrease is highest at the

Junior Management level

Majority of the

organizations havegiven variable pay toall their employees in


levels


30/132


Auto & Auto ComponentsKey Benefits

Car Policy Car Value

In % Clerical JM MM SM TM

< 3 Lacs - - - - -

3 - 5 Lacs - 18.2 36.4 9.1 -

5 - 8 Lacs - 18.2 45.5 18.2 -

8 -12 Lacs - - 18.2 54.5 9.1

> 12 Lacs - - - 18.2 90.9

N/A 100.0 63.6 - - -

Car Policy Fuel per Month Medical Insurance Premium Paid by Employer

Leave Encashment


< 5000 - 18.2 18.2 9.1 -

5000 - 8000 - 27.3 54.5 27.3 -

8000 -12000 - - 18.2 36.4 9.1

12000 - 15000 - - 9.1 18.2 18.2

> 15000 - - - 9.1 45.5

On Actuals - - - - 27.3

N/A 100.0 54.5 - - -

Car Policy Driver Allowance


Provided by - - 36.4% 54.5% 90.9%

Average

Amount per

Month

- - 8000-12000 8000-12000 10000-18000

Mobile Policy Bill Reimburse per Annum


< 5000 - - - - -

5000 - 10000 - 45.5 54.5 27.3 -

10000 - 15000 - 9.1 45.5 45.5 18.2

> 15000 - - - 18.2 36.4

On Actuals - - - 9.1 45.5

N/A 100.0 45.5 - - -

18.2%

36.4%

36.4%

9.0%Employee only

Employee & spouse

Employee, spouse anddependent childrenEmployee, spouse, dependentchildren and dependent parents

90.9% companies allow leave encashment

companies allow leave encashment during tenure36.4%

54.5% companies allow leave encashment only after separation

(2)

(4)

(4)

(1)

30


31/132


Auto & Auto ComponentsKey HR Challenges and Managing Attrition

Developing

Potential

Leaders

Employee

Engagement

Attracting Talent


32Clerical/

JM/

MM/

SM/

TM/

30

39

44

50

Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent



Personal Reasons (Marriage, Health, Family,

Relocation etc.)

Better Utilization of Current Skills


Cleary defined Career Paths & Succession Plans

Employee Higher Education Plan

Recognition Awards (Monetary/Non-Monetary)

Top three Methods to Manage and Reward Critical

Talent


Higher Salaries


HR

Challenges

31


32/132

Banking,

FinancialServices &

Insurance


33/132


BFSIExecutive Summary: Key Findings

The average variable pay percent across this sector is



Voluntary Attrition rate for this sector in FY 2013-14 on an

average is 14.0%. Highest attrition rate is observed for the

Clerical Cadre at 18.6%

Organizations attribute Better Career Prospects, Personal

Reasons and Better Pay Opportunities as the main

reasons for attrition

Compensation Structuring, Developing Potential Leaders

and Retaining and Rewarding the Critical Talent are the

key HR challenges faced by this sector

The average salary increment across this sector is


lower than the previous FY 2013-14 (9.7%)

Employee

Strength

22.2%

33.3%5.6%

5.6%

33.3%1000 Crore

38.9%

22.2%

5.6%

16.7%

16.7% < 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

Employee

Strength

01

02

03

04

05

Annual

Revenue

Employee

Strength

33

The average increment The average increment


34/132


BFSIAnnual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 7.4 8.5 9.2 11.3 13.0 9.3

JM 7.6 8.6 9.2 11.5 13.3 9.4

MM 7.8 8.5 9.5 11.7 13.4 9.6

SM 7.9 9.0 10.2 12.0 14.2 10.4

TM 8.1 9.1 10.5 12.6 15.1 10.3

In %


10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.411.3 10.6 10.7

9.811.2 11.9

9.3 8.7 9.611.8

8.9

10.6 10.0 9.6

11.5 10.7 10.89.9

11.412.4

9.5 9.0 9.4

12.4

9.2

10.510.2 10.4

11.9 10.8 11.110.3

11.7

12.6

9.7 9.410.2

12.6

9.3

11.310.8 10.3

12.611.7 11.8

10.7

12.913.3

10.59.9

10.4

13.2

9.5

OverallIndustry


TM

SM

MM

JM

CL


34

gat Clerical Cadre andJunior Managementlevel is expected to belower than the overallaverage increment at

9.5% in this sector

The average incrementat Top and Senior

Management levels ismarginally higher than

the overall industryaverage increment

(10.3%)

Top and MiddleManagement levelsreported maximumdecrease in average

increments compared tothe overall industry

Senior Management levelreported minimumdecrease in average



35/132


BFSIAverage Annual Increments FY 2014-15 (Projections) vis--vis FY 2013-14 (Actuals)


FY 2013-147.4 8.7 9.8 12.1 15.2 9.7

FY 2014-15 7.2 8.4 9.3 11.8 14.8 9.5


9.39.4

9.6

10.410.3

9.6 9.6

10.0

10.6 10.6

8.5

9.0

9.5

10.0

10.5

11.0


FY 2014-15 FY 2013-14

In %

35

Higher incrementsacross this sector is


the 15% mark. However,on the lower side, theincrements have also

reduced to 7.2%



has been observed inthe median (50P)

increment

Average annual

increment percentageshave reduced marginallyacross levels; the

reduction is highest atthe Middle Management

level

Majority of the

organizations havegiven increments toall their employees in


levels

h i blThe average variable


36/132



12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.718.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7

16.4 16.4

18.9 17.420.2

17.919.7

18.117.3

18.7 18.617.3 16.7

17.218.6 18.7

22.4 21.6

26.5

21.724.3

22.920.9

23.7 23.220.1 20.2

21.3 23.4 23.2

24.2 25.3

29.5

25.6

27.627.2

25.2

27.426.9

23.6 23.225.8

27.1 26.8

OverallIndustry


TMSM

MM

JM

CL

BFSIAnnual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 10.6 12.3 14.3 18.2 21.7 14.2

JM 13.4 15.9 18.8 23.6 28.2 18.6

MM 15.7 18.2 20.3 26.7 32.8 20.2

SM 17.8 22.5 26.7 31.7 36.5 26.5

TM 19.2 24.6 29.6 35.7 42.1 29.5

In %


36

The average variable payat Clerical Cadre and

Junior Management levelis expected to be lower

than the overall averagevariable pay at20.2% in

this sector

gpay at Senior and TopManagement levels is


(18.5%)

The Clerical Cadre andall the Management

levels reported anincrease in average

variable pay compared

to the overall industry

The MiddleManagement levelreported minimumincrease in average

variable pay compared

to the overall industry


37/132


BFSIAverage Annual Variable Pay FY 2014-15 (Projections) vis--vis FY 2013-14 (Actuals)


FY 2013-14 10.1 15.2 19.6 30.7 35.8 19.8

FY 2014-15 10.4 15.8 20.1 31.4 36.2 20.2


14.2

18.620.2

26.5

29.5

13.6

17.919.3

24.9

27.8

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0


FY 2014-15 FY 2013-14

In %

37




increased to 10.4%


has been observed inthe 75thpercentile

variable pay


pay percentages haveincreased marginallyacross levels; the

increase is highest at theTop Management level

Majority of the



levels


38/132


BFSIKey Benefits



< 3 Lacs - - - - -

3 - 5 Lacs - 33.3 33.3 11.1 -

5 - 8 Lacs - 27.8 50.0 22.2 -

8 -12 Lacs - - 16.7 50.0 5.6

> 12 Lacs - - - 16.7 94.4

N/A 100.0 38.9 - - -


Leave Encashment


< 5000 - 22.2 22.2 11.1 -

5000 - 8000 - 33.3 44.4 27.8 -

8000 -12000 - - 22.2 33.3 16.7

12000 - 15000 - - 11.1 16.7 22.2

> 15000 - - - 11.1 38.9

On Actuals - - - - 22.2

N/A 100.0 44.4 - - -



Provided by - - 38.9% 77.8% 88.9%

Average

Amount per

Month

- - 8000-12000 8000-14000 10000-16000



< 5000 - - - - -

5000 - 10000 - 16.7 38.9 27.8 -

10000 - 15000 - 33.3 33.3 44.4 22.2

> 15000 - 11.1 27.8 16.7 22.2

On Actuals - - - 11.1 55.6

N/A 100.0 38.9 - - -

16.7%

38.9%

27.7%

16.7%Employee only

Employee & spouse





(7)

(3) (3)

(5)

38


39/132


BFSIKey HR Challenges and Managing Attrition

Developing

Potential

Leaders

Compensation

Structuring

Attracting Talent


29Clerical/

JM/

MM/

SM/

TM/

31

36

42

46

Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent




Relocation etc.)




Profit Sharing


Top three Methods to Reward and Manage Critical

Talent

Higher Salaries



HR

Challenges

39


40/132

Chemical


41/132


ChemicalExecutive Summary: Key Findings



higher than the previous FY 2013-14 (17.4%)Voluntary Attrition rate for this sector in FY 2013-14 on an

average is 12.2%. Highest attrition rate is observed for


Organizations attribute Better Career Prospects, Better

Pay Opportunities and Personal Reasons as the main

reasons for attrition

Career Management, Developing Potential Leaders and

Retaining and Rewarding the Critical Talent are the key

HR challenges faced by this sector




Employee

Strength

18.2%

18.2%

63.6%

1000 Crore

Employee

Strength

18.2%

54.5%

27.3%

< 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

01

02

03

04

05

Annual

Revenue

Employee

Strength

41

The average incrementt Cl i l C d J i The average increment at


42/132


ChemicalAnnual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 7.5 8.9 10.9 12.2 13.9 10.7

JM 7.9 9.4 11.4 12.9 14.6 11.3

MM 8.1 10.1 11.7 13.2 15.1 11.5

SM 8.6 9.9 11.8 13.6 15.5 11.9

TM 8.8 10.6 12.7 14.3 16.2 12.6

In %


10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.411.3 10.6 10.7

9.811.2 11.9

9.3 8.7 9.611.8

8.9

10.6 10.0 9.6

11.5 10.7 10.89.9

11.412.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.9

10.811.1

10.3

11.712.6

9.79.4

10.2

12.6

9.3

11.310.8 10.3

12.611.7 11.8

10.7

12.913.3

10.59.9

10.4

13.2

9.5

OverallIndustry


TMSM

MM

JM

CL


42

at Clerical Cadre, Juniorand Middle


than the overall averageincrement at 11.6% in

this sector

The average increment atTop, Senior and MiddleManagement levels is

significantly higher thanthe overall industryaverage increment

(10.3%)


levels reported increasein average increments

compared to the overallindustry

The Clerical Cadrelevel reported

minimum increase inaverage increments

compared to theoverall industry


43/132


ChemicalAverage Annual Increments FY 2014-15 (Projections) vis--vis FY 2013-14 (Actuals)


FY 2013-14 7.9 9.4 11.9 13.7 15.6 11.9

FY 2014-15 7.5 9.2 11.6 13.4 15.3 11.6


10.711.3 11.5

11.912.611.1

11.511.9 12.1

12.9

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0


FY 2014-15 FY 2013-14

In %

43

Higher increments acrossthis sector is expected tobe around the 15% mark.However, on the lower

side, the increments havealso reduced to 7.5%



has been observed inthe 10thpercentileincrement

Average annual increment

percentages have reducedmarginally across levels;the reduction is highest at

the Clerical Cadre level

Majority of theorganizations have

given increments to alltheir employees in the


The average variablet Cl i l C d

The average variable


44/132


ChemicalAnnual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 9.6 11.1 13.0 15.8 18.1 13.1

JM 11.7 13.7 16.1 19.6 22.7 16.3

MM 13.0 15.2 17.8 23.2 29.0 17.9

SM 16.2 19.3 21.9 27.7 33.1 21.7

TM 17.1 21.3 25.8 31.2 36.2 25.6

In %


12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.718.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7

16.4 16.4

18.9 17.420.2

17.919.7

18.117.3

18.7 18.617.3 16.7

17.218.6 18.7

22.4 21.6

26.5

21.7

24.3

22.9 20.9 23.7 23.2 20.1 20.221.3 23.4 23.2

24.2 25.3

29.5

25.6

27.627.2

25.2

27.426.9

23.6 23.225.8

27.1 26.8

OverallIndustry


TM

SM

MM

JM

CL


44

pay at Clerical Cadreand Junior Management

level is expected to belower than the overall


gpay at Senior and TopManagement levels is

significantly higherthan the overallindustry average

variable pay (18.5%)

The Clerical Cadre andTop Management level

reported increase inaverage variable pay


The Middle Managementlevel reported maximum

decrease in averagevariable pay compared to



45/132


ChemicalAverage Annual Variable Pay FY 2014-15 (Projections) vis--vis FY 2013-14 (Actuals)


FY 2013-14 8.6 12.6 17.2 26.6 31.1 17.4

FY 2014-15 9.4 13.4 17.7 27.4 32.8 17.8


13.1

16.3

17.9

21.7

25.6

12.6

14.615.7

19.8

23.9

0.0

5.0

10.0

15.0

20.0

25.0

30.0


FY 2014-15 FY 2013-14

In %

45

Higher variable pay acrossthis sector is expected tobe around the 33% mark.However, on the lower

side, the variable pay hasalso increased to 9.4%


significant increase hasbeen observed in the

90th percentile variablepay

Average annual variablepay percentages have

increased marginallyacross levels; the increaseis highest at the Middle

Management level


given variable pay toall their employees inthe range of 9.4-32.8%,

across all levels


46/132


ChemicalKeyBenefits



< 3 Lacs - - - - -

3 - 5 Lacs - 18.2 45.5 9.1 -

5 - 8 Lacs - 18.2 36.4 27.3 -

8 -12 Lacs - - 18.2 45.5 9.1

> 12 Lacs - - - 18.2 90.9

N/A 100.0 63.6 - - -


Leave Encashment


< 5000 - 18.2 18.2 9.1 -

5000 - 8000 - 27.3 45.5 36.4 -

8000 -12000 - - 27.3 27.3 9.1

12000 - 15000 - - 9.1 18.2 18.2

> 15000 - - - 9.1 45.5

On Actuals - - - - 27.3

N/A 100.0 54.5 - - -



Provided by - - 27.3% 63.6% 90.9%

Average

Amount per

Month

- - 8000-12000 9000-14000 10000-18000



< 5000 - - - - -

5000 - 10000 - 45.5 54.5 27.3 -

10000 - 15000 - 18.2 45.5 45.5 27.3

> 15000 - - - 18.2 36.4

On Actuals - - - 9.1 36.4

N/A 100.0 36.4 - - -

18.2%

45.5%

27.3%

9.0%Employee only

Employee & spouse





(2)(1)

(3)

(5)

46


47/132


ChemicalKey HR Challenges and Managing Attrition

Developing

Potential

Leaders

Career

Management

Attracting Talent


33Clerical/

JM/

MM/

SM/

TM/

36

40

46

50

Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent





Relocation etc.)



Development Programs for High Potentials and Top

Performers



Talent

Higher Salaries



HR

Challenges

47


48/132

ConsumerBusiness


49/132

The average increment The average increment at


50/132


Consumer BusinessAnnual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 7.4 8.6 10.2 11.5 13.2 10.4

JM 7.8 8.9 10.5 12.4 13.8 10.6

MM 7.9 9.2 10.8 12.3 14.1 10.7

SM 8.2 9.4 10.9 12.6 14.7 10.8

TM 8.4 10.2 11.5 13.3 15.4 11.7

In %


10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.411.3 10.6 10.7

9.811.2 11.9

9.3 8.7 9.611.8

8.9

10.6 10.0 9.6

11.5 10.7 10.89.9

11.412.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.910.8 11.1

10.3

11.712.6

9.79.4

10.2

12.6

9.3

11.310.8 10.3

12.611.7 11.8

10.7

12.913.3

10.59.9

10.4

13.2

9.5

Overall

Industry


TM

SM

MM

JM

CL


50

The average incrementat Clerical Cadre levelis expected to be lower

than the overall averageincrement at 10.6% in

this sector

The average increment atTop Management level issignificantly higher than

the overall industryaverage increment (10.3%)




The Middle Managementlevel reported minimum

increase in averageincrements compared to



51/132


Consumer BusinessAverage Annual Increments FY 2014-15 (Projections) vis--vis FY 2013-14 (Actuals)


FY 2013-14 7.5 9.2 10.8 12.7 15.5 10.9

FY 2014-15 7.3 8.8 10.7 12.6 15.2 10.6


10.4

10.610.7

10.8

11.7

10.710.8 10.8

11.1

11.9

9.5

10.0

10.5

11.0

11.5

12.0

12.5


FY 2014-15 FY 2013-14

In %

51

Higher incrementsacross this sector is

expected to be aroundthe 15% mark.

However, on the lowerside, the incrementshave also reduced to

7.3%

In comparison to otherpercentiles, a significant

reduction has been

observed in the 25thpercentile increment

Average annualincrement percentages

have reduced marginallyacross levels; the

reduction is lowest atthe Middle Management

level

Majority of the

organizations havegiven increments to alltheir employees in the


C B i

The average variable payat Clerical Cadre Junior

The average variablepay at Senior and Top


52/132



12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.718.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7

16.4 16.4

18.9 17.420.2

17.919.7

18.117.3

18.7 18.617.3 16.7

17.218.6 18.7

22.4 21.6

26.5

21.7

24.3

22.9 20.9 23.7 23.2 20.1 20.221.3 23.4 23.2

24.2 25.3

29.5

25.6

27.627.2

25.2

27.426.9

23.6 23.225.8

27.1 26.8

Overall

Industry


TM

SM

MM

JM

CL

Consumer BusinessAnnual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 10.4 12.3 13.9 17.6 20.9 14.1

JM 13.7 16.3 18.4 23.3 27.7 18.2

MM 15.4 17.8 19.8 25.3 30.4 19.7

SM 17.6 20.7 24.2 29.2 34.6 24.3

TM 18.6 23.4 27.7 33.7 39.3 27.6

In %


52

at Clerical Cadre, Juniorand Middle Management



pay at Senior and TopManagement levels is


(18.5%)


levels reportedincrease in average

variable pay comparedto the overall industry

The Top Managementlevel reported maximum


C B i


53/132


Consumer BusinessAverage Annual Variable Pay FY 2014-15 (Projections) vis--vis FY 2013-14 (Actuals)


FY 2013-14 9.2 15.3 19.2 28.1 38.4 19.4

FY 2014-15 10.1 16.0 19.5 28.8 39.0 19.8


14.1

18.219.7

24.3

27.6

13.4

16.617.9

22.4

25.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0


FY 2014-15 FY 2013-14

In %

53


expected to be around the

39% mark. However, onthe lower side, the

variable pay has alsoincreased to 10.1%

In comparison to otherpercentiles, a significant

increase has been

observed in the 10thpercentile variable pay



across levels; the increaseis highest at the Seniorand Top Management

levels

Majority of the

organizations havegiven variable pay to alltheir employees in therange of 10.1-39.0%,

across all levels

C B i


54/132


Consumer BusinessKey Benefits



< 3 Lacs - - - - -

3 - 5 Lacs - 20.0 30.0 - -

5 - 8 Lacs - 30.0 50.0 20.0 -

8 -12 Lacs - - 20.0 60.0 10.0

> 12 Lacs - - - 20.0 90.0

N/A 100.0 50.0 - - -


Leave Encashment


< 5000 - 20.0 20.0 10.0 -

5000 - 8000 - 30.0 50.0 30.0 -

8000 -12000 - - 20.0 30.0 10.0

12000 - 15000 - - 10.0 20.0 10.0

> 15000 - - - 10.0 50.0

On Actuals - - - - 30.0

N/A 100.0 50.0 - - -



Provided by - - 50.0% 60.0% 100.0%

Average

Amount per

Month

- - 8000-12000 8000-14000 10000-18000



< 5000 - - - - -

5000 - 10000 - 60.0 60.0 30.0 -

10000 - 15000 - 20.0 40.0 40.0 20.0

> 15000 - - - 20.0 40.0

On Actuals - - - 10.0 40.0

N/A 100.0 20.0 - - -

20.0%

40.0%

30.0%

10.0%Employee only

Employee & spouse





(2)(1)

(3)

(4)

54

C B i


55/132


Consumer BusinessKey HR Challenges and Managing Attrition

Developing

Potential

Leaders

Developing

Potential

Leaders

Attracting Talent


32Clerical/

JM/

MM/

SM/

TM/

32

38

46

46

Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent




Relocation etc.)




Project Incentives



Talent

Higher Salaries



HR

Challenges

55


56/132

Engineering &Manufacturing


57/132

Engineering & Manufacturing

The average increment atClerical Cadre, Junior

The average incrementat Top and Senior


58/132


10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.411.3 10.6 10.7

9.811.2 11.9

9.3 8.7 9.611.8

8.9

10.6 10.0 9.6

11.5 10.7 10.89.9

11.412.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.910.8 11.1

10.3

11.712.6

9.79.4

10.2

12.6

9.3

11.310.8 10.3

12.611.7 11.8

10.7

12.913.3

10.59.9

10.4

13.2

9.5

Overall

Industry


TM

SM

MM

JM

CL


Engineering & ManufacturingAnnual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 7.5 8.8 10.4 11.7 13.4 10.5

JM 7.9 9.5 10.6 12.5 13.9 10.7

MM 7.7 9.1 10.9 12.8 14.2 10.8

SM 8.3 9.6 11.2 12.7 14.6 11.1

TM 8.5 9.1 11.7 13.5 15.7 11.8

In %


58

and Senior Managementlevels is expected to belower than the overallaverage increment at10.9% in this sector

pManagement levels is

significantly higher thanthe overall industryaverage increment

(10.3%)

The Clerical Cadre and allthe Management levels

reported increase inaverage increments


The Middle Managementlevel reported minimum




59/132

Engineering & ManufacturingThe average variable pay

t Cl i l C d J i

The average variablepay at Senior and Top


60/132



12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.718.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7

16.4 16.4

18.9 17.420.2

17.919.7

18.117.3

18.7 18.617.3 16.7

17.218.6 18.7

22.4 21.6

26.5

21.7

24.3

22.9 20.9

23.723.2

20.1 20.221.3 23.4 23.2

24.2 25.3

29.5

25.6

27.627.2

25.2

27.426.9

23.6 23.225.8

27.1 26.8

Overall

Industry


TM

SM

MM

JM

CL

Engineering & ManufacturingAnnual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 9.8 11.7 13.3 16.0 18.4 13.4

JM 12.0 14.2 16.0 19.7 22.9 16.2

MM 13.2 15.9 18.3 24.0 29.4 18.1

SM 16.4 19.8 22.8 28.6 33.9 22.9

TM 17.2 22.2 27.0 31.8 36.4 27.2

In %


60

at Clerical Cadre, Juniorand Middle Management



Management levels issignificantly higher than

the overall industryaverage variable pay

(18.5%)

The Clerical Cadre,Top and Senior

Management levelsreported increase in

average variable paycompared to the

overall industry





61/132


Engineering & ManufacturingAverageAnnual Variable Pay FY 2014-15 (Projections) vis--vis FY 2013-14 (Actuals)


FY 2013-14 9.1 13.2 17.5 26.2 34.8 17.8

FY 2014-15 9.7 14.0 18.0 28.4 36.1 18.2


13.4

16.2

18.1

22.9

27.2

11.6

14.315.5

21.2

24.4

0.0

5.0

10.0

15.0

20.0

25.0

30.0


FY 2014-15 FY 2013-14

In %

61


expected to be aroundthe 36% mark.

However, on the lowerside, the variable payhas also increased to

9.7%


significant increase hasbeen observed in the

75th percentile variablepay

Average annual variablepay percentages haveincreased marginally

across levels; the increaseis highest at the TopManagement level


given variable pay toall their employees inthe range of 9.7-36.1%,

across all levels



62/132


Engineering & ManufacturingKey Benefits



< 3 Lacs - - - - -

3 - 5 Lacs - 31.3 34.4 18.8 -

5 - 8 Lacs - 34.4 40.6 25.0 -

8 -12 Lacs - - 25.0 37.5 6.3

> 12 Lacs - - - 18.8 30.0

N/A 100.0 34.4 - - -


Leave Encashment


< 5000 - 28.1 25.0 15.6 -

5000 - 8000 - 34.4 34.4 25.0 -

8000 -12000 - - 25.0 28.1 21.9

12000 - 15000 - - 15.6 18.8 25.0

> 15000 - - - 12.5 34.4

On Actuals - - - - 18.8

N/A 100.0 37.5 - - -



Provided by - - 43.8% 62.5% 93.8%

Average

Amount per

Month

- - 8000-12000 8000-14000 10000-16000



< 5000 - - - - -

5000 - 10000 - 18.8 40.6 25.0-

10000 - 15000 - 31.3 34.4 34.4 31.3

> 15000 - 18.8 25.0 21.9 31.3

On Actuals - - - 18.8 37.5

N/A 100.0 31.3 - - -

25.0%

31.3%

28.1%

15.6%Employee only

Employee & spouse





(8)

(5)

(9)

(10)

62



63/132


Engineering & ManufacturingKey HR Challenges and Managing Attrition

Developing

Potential

Leaders

Career

Management

Attracting Talent


34Clerical/

JM/

MM/

SM/

TM/

34

40

45

48

Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent




Relocation etc.)




Development Programs for High Potentials and Top

Performers



Talent




HR

Challenges

63


64/132

Energy &

Natural

Resources

Energy & Natural Resources


65/132


Energy & Natural ResourcesExecutive Summary: Key Findings



higher than the previous FY 2013-14 (17.2%)Voluntary Attrition rate for this sector in FY 2013-14 on an



Organizations attribute Better Career Prospects, Better

Pay Opportunities and Better Utilization of Current Skills

as the main reasons for attrition

.Compensation Structuring, Performance Managementand Employee Engagement are the key HR challenges

faced by this sector



lower than the previous FY 2013-14 (10%)

Employee

Strength

12.5%

12.5%

62.5%

1000 Crore

Employee

Strength

37.5%

12.5%

50.0%

< 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

01

02

03

04

05

Annual

Revenue

Employee

Strength

65

Energy & Natural ResourcesThe average increment

at Clerical Cadre is

The average incrementat Top Management


66/132



10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.411.3 10.6 10.7

9.811.2 11.9

9.3 8.7 9.611.8

8.9

10.6 10.0 9.6

11.5 10.7 10.89.9

11.412.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.9

10.8 11.1 10.3

11.712.6

9.7 9.410.2

12.6

9.3

11.310.8 10.3

12.611.7 11.8

10.7

12.913.3

10.59.9

10.4

13.2

9.5

OverallIndustry Auto BFSI Chem CB Eng Energy Hi-Tech ITeS Infra Log Media Pharma Retail

TMSM

MM

JM

CL

Energy & Natural ResourcesAnnual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 7.2 8.5 9.4 11.6 13.3 9.2

JM 7.5 8.4 9.6 11.7 13.4 9.8

MM 7.4 8.4 9.8 11.5 13.6 9.9

SM 7.7 8.8 10.2 12.0 14.2 10.3

TM 8.0 9.5 10.5 12.6 15.0 10.7

In %


66

at Clerical Cadre isexpected to be lower


9.7% in this sector

at Top Managementlevel is higher thanthe overall industryaverage increment

(10.3%)


levels reporteddecrease in average


The Senior Managementlevel reported minimum

decrease in averageincrements compared to



67/132


The average variablepay at Clerical Cadre,

Junior and Middle

The average variable payat Senior and Top


68/132



12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.718.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7

16.4 16.4

18.9 17.420.2

17.919.7

18.117.3

18.7 18.617.3 16.7

17.218.6 18.7

22.4 21.6

26.5

21.7

24.3

22.9 20.9

23.723.2 20.1 20.2

21.323.4

23.2

24.2 25.3

29.5

25.6

27.627.2

25.2

27.426.9

23.6 23.225.8

27.1 26.8

Overall

Industry


TM

SM

MM

JM

CL

Energy & Natural ResourcesAnnual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 9.1 10.7 12.1 14.4 16.4 12.2

JM 11.0 12.7 14.8 18.5 21.8 14.7

MM 11.9 14.8 17.4 22.3 26.8 17.3

SM 14.2 17.7 20.8 26.8 32.8 20.9

TM 15.6 20.7 25.4 31.0 36.3 25.2

In %


68

JManagement levels is

expected to be lowerthan the overall

average variable payat 17.4% in this sector

pManagement levels is

significantly higher thanthe overall industry

average variable pay(18.5%)

The Clerical Cadre andTop Management level

reported increase inaverage variable pay


The Junior Managementlevel reported maximum

decrease in averagevariable pay compared to




69/132


Energy & Natural ResourcesAverage Annual Variable Pay FY 2014-15 (Projections) vis--vis FY 2013-14 (Actuals)


FY 2013-14 8.4 12.1 17.0 25.7 30.6 17.2

FY 2014-15 8.9 12.5 17.2 26.5 32.0 17.4


12.2

14.7

17.3

20.9

25.2

10.5

12.814.3

18.6

22.9

0.0

5.0

10.0

15.0

20.0

25.0

30.0


FY 2014-15 FY 2013-14

In %

69




increased to 8.9%


has been observed inthe 90th percentilevariable pay



across levels; theincrease is highest at the

Middle Managementlevel

Majority of the



levels



70/132


Energy & Natural ResourcesKey Benefits



< 3 Lacs - - - - -

3 - 5 Lacs - 25.0 37.5 - -

5 - 8 Lacs - 25.0 37.5 25.0 -

8 -12 Lacs - - 25.0 50.0 12.5

> 12 Lacs - - - 25.0 87.5

N/A 100.0 50.0 - - -


Leave Encashment


< 5000 - 25.0 12.5 12.5 -

5000 - 8000 - 25.0 50.0 25.0 -

8000 -12000 - - 25.0 25.0 12.5

12000 - 15000 - - 12.5 25.0 12.5

> 15000 - - - 12.5 37.5

On Actuals - - - - 37.5

N/A 100.0 50.0 - - -



Provided by - - 62.5% 75.0% 100%

Average

Amount per

Month

- - 8000-12000 8000-1400010000-

18000



< 5000 - - - - -

5000 - 10000 - 50.0 50.0 37.5 -

10000 - 15000 - 25.0 50.0 25.0 25.0

> 15000 - - - 25.0 37.5

On Actuals - - - 12.5 37.5

N/A 100.0 25.0 - - -

25.0%

37.5%

25.0%

12.5%Employee only

Employee & spouse


100% companies allow leave encashment

companies allow leave encashment during tenure

companies allow leave encashment only after separation

37.5%

62.5%

In %

In % In %

(2)(1)

(2)

(3)

70



71/132


Energy & Natural ResourcesKey HR Challenges and Managing Attrition

Developing

Potential

Leaders

Compensation

Structuring

Attracting Talent


30Clerical/

JM/

MM/

SM/

TM/

31

39

45

48

Key Reasons for

Attrition

Measures Taken

to Curb Attrition

Interventions to

Manage & Reward

Critical Talent








Project Incentives


Talent



Higher Salaries

HR

Challenges

71


72/132

Hi-Tech

Hi-Tech


73/132


Executive Summary: Key Findings

Employee

Strength

15.4%

11.5%

11.5%

19.2%

42.3%

1000 Crore

15.4%

15.4%

11.5%

19.2%

15.4%

23.1%< 500

500 - 2000

2000 - 5000

5000 - 10000

10000 - 25000

> 25000

Employee

Strength




Voluntary Attrition rate for this sector in FY 2013-14 on an



Organizations attribute Better Career Prospects,

Pursuing Further Studies and Better Utilization of Current

Skills as the main reasons for attrition

Career Management, Retaining and Rewarding theCritical Talent and Employee Engagement are the key HR

challenges faced by this sector




01

02

03

04

05

Annual

Revenue

Employee

Strength

73

Hi-Tech

The average incrementat Clerical Cadre,

Junior and Middle

The average incrementat Clerical Cadre andll M t l l i


74/132


Annual Increments FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 7.6 8.9 10.8 12.4 13.7 10.7

JM 7.8 9.3 11.3 12.7 14.4 11.2

MM 7.8 9.5 11.6 13.2 14.9 11.4

SM 8.4 10.3 11.9 13.5 15.4 11.7

TM 8.7 10.6 12.8 14.2 16.0 12.9

In %Comparison of Level-wise Average Increments Across Sectors

10.0 9.5 9.3 10.7 10.4 10.5 9.2 10.7 11.4 9.2 8.9 9.2 11.7 8.6

10.2 9.6 9.411.3 10.6 10.7

9.811.2 11.9

9.3 8.7 9.611.8

8.9

10.6 10.0 9.6

11.5 10.7 10.89.9

11.412.4

9.5 9.0 9.4

12.4

9.2

10.5 10.2 10.4

11.9

10.8 11.1 10.3

11.712.6

9.7 9.410.2

12.6

9.3

11.310.8 10.3

12.611.7 11.8

10.7

12.913.3

10.59.9

10.4

13.2

9.5

OverallIndustry


TMSM

MM

JM

CL


74


than the overallaverage increment at11.5% in this sector

all Management level ishigher than the overall

industry averageincrement (10.3%)



compared to the overall

industry





75/132

Hi-Tech

The average variablepay at Clerical Cadre,

Junior and Middle

The average variablepay at Senior andTop Management


76/132



12.1 12.5 14.2 13.1 14.1 13.4 12.2 12.5 12.1 11.7 11.1 12.4 13.6 12.3

16.7 15.718.6 16.3 18.2 16.2 14.7 18.1 16.3 14.1 14.2 15.7

16.4 16.4

18.9 17.420.2

17.919.7

18.117.3

18.7 18.617.3 16.7

17.218.6 18.7

22.4 21.6

26.5

21.7

24.3

22.9 20.9

23.7

23.2 20.1 20.2 21.323.4

23.2

24.2 25.3

29.5

25.6

27.627.2

25.2

27.426.9

23.6 23.225.8

27.1 26.8

Overall

Industry


TM

SM

MM

JM

CL

Annual Variable Pay FY 2014-15 (Projections)

In % 10P 25P 50P 75P 90P Avg

Clerical 10.2 11.2 12.6 16.2 20.1 12.5

JM 13.4 15.9 18.2 21.1 24.4 18.1

MM 14.9 16.7 18.9 24.5 30.4 18.7

SM 17.2 20.2 23.6 28.7 34.2 23.7

TM 18.1 22.8 27.2 32.9 38.4 27.4

In %


76

JManagement levels is

expected to be lowerthan the overall averagevariable pay at 18.8% in

this sector

levels issignificantly higher

than the overallindustry average

variable pay (18.5%)

The Middle Managementlevel reported decrease in

average variable paycompared to the overall

industry


increase in averagevariable pay compared to


Hi-Tech


77/132


Average Annual Variable Pay FY 2014-15 (Projections) vis--vis FY 2013-14 (Actuals)


FY 2013-14 9.0 14.7 18.5 27.2 36.7 18.6

FY 2014-15 10.1 15.6 18.8 28.5 38.1 18.8


12.5

18.1 18.7

23.7

27.4

12.1

15.516.8

20.6

25.1

Documents

Annual Compensation Trends Report FY 2014-15