Downturn effect: Double-digit salary hikes a thing of past!

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Posted: Tuesday, May 05, 2009 at 1752 hrs IST
Updated: Tuesday, May 05, 2009 at 1752 hrs IST

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New Delhi: India Inc may have been spiraling salaries in the recent years but not anymore, as double-digit pay hikes can well be a "thing of the past", thanks to the financial crunch forcing corporates to embark on cost cutting spree.

According to Global HR services firm Manpower, companies have become cautious about increases in salaries and are seeking new ways to answer the downturn which include handling the talent in a more efficient manner.

"High double-digit salary hikes are a thing of the past. India Inc will have a cautious approach towards salary increases in FY'10. Even if a company performs extraordinarily better, it will still be conservative with any pay hikes,"

Manpower India Managing Director Naresh Malhan said.

Malhan added that the companies are under the cash conservation syndrome following the economic downturn, which would discourage them from going for significant rise in salaries this year.

Industry experts believe that companies are looking for innovative ways to handle their talent rather than just layoffs which include multi-skills training and consciously looking at filling up gaps in the organisation. "Manpower also provides over 4,300 courses on training and development courses for candidates, which will help in enhancing their skills across various levels," Malhan added.

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» IT Reporting

Posted by Sandeep Gaur on 2009-05-05 23:39:47.50935+05:30
I would like to raise two concerns:-- If you want to show a report on impact of downturn on salaries go and ask competitive authorities. Hike and new joining are two different things. Hike is given when you had been in your current job for a while and then you are appraised. Organizations like Manpower earn money because they got commission when someone whom they referred joined a particular organization and stay there for more than say 3 months. Once a particular guy has joined then his hike will not be known to Manpower. So he is not the right guy to approach.- IT and BPO are two separate entities. So please in future if you say there is a down turn in IT please do not quote examples only from BPO. If you do not know the difference between the two then do not show your report.You are doing no good by gathering information from non desired sources and then printing in your paper. Please stop spreading False rumour as they are not healthy.

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