Deloitte Compensation Trends 2013

Compensation Trends Survey 2013 – 14 Deloitte

Human Capital Consulting

March 2013

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Contents

Survey Details

Survey Highlights

General Industry Analysis

Detailed Sector-wise Analysis

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Contents

Survey Details

Survey Highlights



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© 2013 Deloitte Touche Tohmatsu India Private Limited. All rights reserved.

Survey Details Scope of the Survey

The Deloitte Compensation Trends Survey is an annual

study conducted by Deloitte Human Capital Consulting.

The aim of the survey is to understand key

compensation trends across sectors in the Indian

market. This is the third edition of this survey

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Elements detailed in the Compensation Trends

Survey 2013 – 14

• Salary Increase for 2013 – 2014

• Variable Pay given / to be given for 2013 – 2014

• Key Benefits given across sectors

• Attrition rate and key reasons for attrition faced by

organizations

• Key Human Resource Challenges faced by organizations


Survey Details Survey Methodology

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Design the Survey Instrument

The parameters of the study were finalized and a structured questionnaire was designed as a primary data collection tool

Finalization of Target Basket

The sectors covered in the study were finalized along with the leading organizations from each sector

Invite and Seek Consent for Participation

A formal invitation e-mail was sent to the Human Resources in the chosen organizations requesting for participation

Data Collection and Validation

The responses received from all participants were validated and checked for accuracy and intended interpretation

Data Analysis

The data received was collated and analyzed to get detailed insights on sector wise practices and compensation trends

Compensation Trends Survey 2013 – 14 Report


10%

15%

19% 50%

6%

<100 Cr. 100 - 300 Cr. 300 - 500 Cr. 500 - 1000 Cr. >1000 Cr.

26%

27% 23%

11%

6% 6%

<500 500 - 2000 2000 - 5000

5000 - 10000 10000 - 25000 >25000

Survey Details Participant Profile

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Industry-wise participation

155 organizations participated in the Compensation Trends Survey for 2013 – 2014

Annual Revenue

Employee Strength

• The greatest participation in this survey came from the Manufacturing

sector, followed by Financial Services, IT and ITeS sectors

• Annual revenue of majority of the organizations (50%) is ` 500 – 1000

Cr. This is followed by 19% in ` 300 – 500 Cr. range and 15% in the

` 100 – 300 Cr. range

• Majority of the organizations (27%) who participated in the survey

have employees between 500 – 2000

7%

24%

7%

10% 12%

8%

9%

5%

7%

6% 5%

Consumer Business & Retail

Manufacturing

Infrastructure & Real Estate

Pharmaceuticals

Financial Services

Information Technology

ITeS

Advertising & Media

Energy & Natural Resources

Hospitality

Logistics

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Survey Highlights Executive Summary

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• The median salary increments across sectors is projected at 11.3% • Highest increment figures have been reported in the Pharmaceuticals, Health Care and Life Sciences sector at

13.1% • The Financial Services sector continues its trend from last year, of being the most conservative sector in terms

of increment projections for 2013 – 2014 at 9.6%

• Overall Variable Pay (as a % of CTC) across sectors is 17.3 % which is an increase of 1.3% points over

last year

• The highest variable pay percent median is observed in the Financial Services sector at 20.1%

• The overall average attrition rate across industries is 14%. Better career opportunities and better pay have

been cited as the key reasons for attrition across most sectors

• The highest attrition rates have been recorded in the ITeS (17%), Advertising & Media (16%) and IT (15%)

sectors. These sectors are followed closely by Pharmaceuticals (14%) and the Infrastructure & Real Estate

sectors (14%)

• Hiring and Retaining skilled talent has been identified as a perennial challenge for organizations across most

sectors. Developing potential future leaders is an emerging concern in many sectors

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General Industry Analysis Market Overview

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• The Indian Economy is currently going through a challenging phase as GDP

growth slowed down to nearly a decade low in 2012-13 with domestic as well as

external factors playing a part in this downfall

• Macroeconomic issues such as high public expenditure, depleting investment and

saving levels, worsening current account balance as well as depreciation of the

Rupee have added to the present economic pressures over-shadowing positive

aspects such as moderation in inflation and recovery of stock markets during the

year

• Since the global financial crisis of 2008-09, the Indian economy grew to a healthy

8.6% till 2010-11. Since then, growth started declining. The trend continued in

2012-13 with a disappointing growth rate of 5.4% in the first half, resulting in

lowering of expectations. The second quarter’s growth at 5.3% is one of the lowest

quarterly growth rates seen in the last decade and the annual growth of 5% will be

the lowest since 2002-03

• The latest Index of Industrial Production (IIP) figures indicate that the industrial

sector has grown at a rate of 0.7% during the period April ’12 to December’12

compared with a growth rate of 3.7% in the corresponding period last year, overall

far lower than the annual growth of 6.8% in 2010-11. Worrying figures primarily in

the mining and manufacturing sectors have contributed to this

• The Government is focusing on cutting costs to curb rising inflation. At the same

time, it is planning on introducing proposals to induce more investments by

encouraging Infrastructure Debt Funds and providing incentives for the

manufacturing sector undertakings to invest more in plant and machinery

• This state of the Indian economic environment should shed some light on the

reason behind increment and variable pay decisions taken by organizations this

year

Source:

Economic Outlook 2012 – 13

Deloitte Budget Publication


General Industry Analysis Annual Increments 2013 – 14 (Projections) vis-à-vis 2012 – 13 (Actuals)

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• The overall annual increment median for this year is projected at 11.3%

• Highest increment for this year is expected in the Pharmaceuticals industry at 13.1%. It is the only sector where

increments are expected to be higher than last year

• Financial services sector maintains a conservative estimate given the overall mood of the economy and is expected to

have the lowest increment median at 9.6%

• This year, two new sectors have also been introduced – Hospitality (11.1%) and Logistics (9.8%)

• The most significant decline in increment medians is observed in the Manufacturing and Infrastructure & Real Estate

sectors

• Employers have shown a trend this year of an increased focus on variable pay percent to compensate for the low annual

increments projected in most of the sectors

12.0%

15.0% 15.0%

12.0%

10.0%

11.0%

12.0%

11.0%

13.8%

11.5% 10.6%

10.0%

11.2% 10.6%

13.1%

9.6%

10.7% 10.3% 10.2%

12.4%

11.1%

9.8%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

ConsumerBusiness & Retail

Manufacturing Infrastructure &Real Estate

Pharmaceuticals FinancialServices

InformationTechnology

ITeS Advertising &Media

Energy &Resources

Hospitality Logistics

2012-13 2013-14


General Industry Analysis Annual Increment 2013 – 14

12 Please Note: JM – Junior Management; MM – Middle Management; SM – Senior Management; TM – Top Management

• The median levels of Junior and Middle Management increments

are expected to be lower than the overall median level increment

of 11.3%

• There is not much variation seen between Junior and Middle

Management increments across the ranges

• Increments for the Top Management in the Pharmaceutical sector

are significantly higher than the cross-sector median increment for

Top Management

Increment Percentiles

10th 25th 50th 75th 90th

JM 7.1% 8.4% 9.8% 11.6% 13.9%

MM 7.9% 9.2% 10.9% 12.1% 14.4%

SM 8.3% 10.1% 11.6% 13.8% 15.0%

TM 9.1% 11.7% 12.5% 14.7% 16.1%

Organizations across industries are expected to continue their trend of being conservative, especially given

the reserved outlook of the economy

Comparison of Level-wise Median Increments Across Sectors

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10

11

12

13

14

15

16

JM

MM

SM

TM


General Industry Analysis Annual Increments 2013 – 14 (Projections) vis-à-vis 2012 – 13 (Actuals)


• At the median level, the increments across sectors are

expected at 11.3%, displaying a slight reduction compared

to last year’s median

• Most organizations across sectors have adopted a

cautious approach to increments this year

• A significant decline of 2.2% points has been witnessed at

the Junior Management level over last year’s increment

figures for the same level

• Higher increments across sectors are still expected around

the 15% mark. However, on the lower side, the increments

have also reduced to 7.5%

• All in all, companies are giving lower increases this year

and higher variable pay percentages, so that the risk of

nonperformance is mitigated

Median Increments Across Levels

10th Percentile 25th Percentile Median 75th Percentile 90th Percentile

2012-13 9.0% 10.0% 12.0% 14.1% 15.1%

2013-14 7.5% 9.8% 11.3% 13.2% 14.9%

Increments have reduced across the ranges; highest decline projected for Junior Management and a

corresponding increase seen for Top Management

12.0% 12.0%

11.0%

10.0% 9.8%

10.9%

11.6% 12.5%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

JM MM SM TM

2012 - 13 2013 - 14


General Industry Analysis Annual Variable Pay Trends

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• The median variable pay percent projected across all industries is 17.3%

• Across most industries, variable pay percent at the median level has increased, indicating a focus of organizations on

building competitiveness within their markets to maintain profitability and steady growth rates in an environment that is not

currently conducive for the same

• Although the Manufacturing sector is showing a slight decline in the variable pay percent, this level is still higher than the

cross-sector median

• Financial Services sector is expected to provide the highest median variable pay at 20.1%

• Similarly high levels of variable pay are observed in all service oriented sectors

18.2%

20.0%

15.0% 15.0%

20.0%

15.1%

13.5%

10.5%

13.3%

18.8% 17.8%

15.4%

18.0%

20.1%

16.3% 16.1%

14.4%

16.5% 17.5%

15.6%

0%

5%

10%

15%

20%

25%



Pharmaceuticals Financial Services IT ITeS Advertising &Media

Energy &Resources


2012-13 2013-14

Hospitality and Logistics are

new sectors in this survey.

Hence, variable pay percent

projections are not available


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10

12

14

16

18

20

22

24

JM

MM

SM

TM

General Industry Analysis Variable Pay 2013 – 14


• The overall median variable pay percent across sectors is 17.3% -

an increase of more than 1% point over last year

• Across all levels, the spread of variable pay percent is relatively

wide with Junior Management getting variable pay from 8.9% -

26.4% and Top Management receiving 10.9% - 31.2%

• Lowest variable pay percent at the Junior Management is

expected in the Infrastructure & Real Estate sector

• Median variable pay percent for Junior, Middle and Senior

Management in the Financial Services sector projected to have

marginal variation

Variable Pay Percentiles


JM 8.9% 11.9% 16.4% 22.2% 26.4%

MM 9.4% 12.7% 17.1% 23.8% 27.1%

SM 10.1% 13.4% 17.7% 24.6% 29.3%

TM 10.9% 14.1% 18.5% 25.1% 31.2%

Variable pay projections expected to increase across all ranges compared to last year

Comparison of Level-wise Variable Pay Percent Across Sectors


General Industry Analysis Variable Pay 2013 – 14 vis-à-vis 2012 – 13

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• The trend lines seen for the annual increments across levels

this year are countered here. Junior Management has

witnessed an increase in the median variable pay percent, with

a corresponding decline at the Top Management level

• A decrease of 4% points is expected in the median variable pay

percent at the Top Management level

• The higher range of variable pay across sectors is expected at

30.8%, and on the lower side the variable pay percent is

projected at 9.2%

Please Note: JM – Junior Management; MM – Middle Management; SM – Senior Management; TM – Top Management


2012-13 8.9% 12.0% 16.2% 20.1% 30.1%

2013-14 9.2% 12.7% 17.3% 23.4% 30.8%

Variable pay percent increase opted for by many organizations; increased focus on higher performance under

the current economic circumstances, especially at the Junior Management level

14.0% 15.1%

20.0%

22.5%

16.4% 17.1%

17.7% 18.5%

0%

10%

20%

30%

40%

50%

JM MM SM TM

Median Annual Variable Pay (as % CTC)

2012 - 13 2013 - 14


General Industry Analysis Key Benefits

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Leave encashment allowed by 40% companies, with median of 34 Days; Mobile Allowance not provided to

many companies to Junior Management, provided on actuals to Top Management by 60% companies

Vehicle Allowance - Car

Car Value JM MM SM TM

3 – 5 Lacs 4.8 11.7 13.4 -

5 – 8 Lacs 1.2 8.5 20.6 14.2

8 – 12 Lacs - 1.4 32.6 25.1

> 12 Lacs - - 1.0 54.0

Not Applicable 94.0 78.3 32.4 6.6

Vehicle Allowance - Fuel

Amount (`) JM MM SM TM

5000 – 8000 7.1 23.5 7.4 -

8000 – 12000 1.7 12.1 19.1 5.2

12000 – 15000 - 3.8 32.7 18.1

> 15000 - - 11.1 35.1

On Actuals 0.8 1.4 10.4 25.8

Not Applicable 90.4 59.2 19.3 15.9

Driver: 61.5% and 45% of the companies across all sectors

provide Driver or Driver Allowance for the Top and Senior

Management respectively

24.5% of the companies across sectors provide LTIPs to their

employees. The most frequently provided LTIPs are ESOPs and

Deferred Cash

Long Term Incentive Plan

Mobile Allowance (Bill Reimbursement)


0 - 5000 52.0 48.0 33.3 10.3

5000 - 10000 9.9 17.7 16.1 6.9

10000 - 15000 1.3 15.9 43.3 22.8

On Actuals - - 6.5 60.0

Not Applicable 36.8 18.4 0.8 -

All figures provided are in terms of % of companies providing the benefit

amount at the particular level

Medical Insurance

Percentage of companies allowing leave encashment: 40%

Median number of days encashable across sectors: 34 Days

Leave Encashment

10%

1%

54%

35%

Employee Only

Employee & Spouse

Employee, Spouse &Children

Employeee, Spouse,Children & Parents


General Industry Analysis Attrition

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• Attrition rates have reduced slightly across sectors. However, it continues to be a

concern at the Junior Management level

• Highest attrition rate recorded at the Junior Management level in the ITeS sector

(25%)

• This sector also faces the highest overall attrition rates (17%), closely followed by IT,

Pharmaceutical and Infrastructure & Real Estate sectors

• The most prevalent reason employees leave organizations is better career

opportunities – entry into the market of many foreign players across sectors has

increased the job opportunities especially at Junior Management level, allowing easy

movement of the workforce

• Employees are also leaving for better pay elsewhere as well as for personal reasons

and better work-life balance

Key Reasons for Attrition

1 Better career opportunities

2 Better pay elsewhere

3 Personal reasons

15%

13% 14%

18%

21%

18%

25%

23%

13% 14% 14%

15%

11%

13%

17% 16%

15%

18% 18%

12%

14%

11% 12%

10%

12% 12% 12% 11%

14% 15%

12% 13%

10% 9%

12%

14% 13%

11% 10%

13%

15%

13% 12%

9%

0%

5%

10%

15%

20%

25%

30%



Pharmaceuticals Financial Services IT ITeS Advertising &Media

Energy &Resources


Junior Management Middle Management Senior Management Top Management

13% 12% 14% 14% 15% 15% 17% 16% 12% 13% 11%

Average Attrition Rate


General Industry Analysis HR Challenges

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• Across all sectors there is an intense competition for hiring the right talent with the

right skill sets

• Given the diverse skill-sets available in the market, several sectors vie for the same

talent pool as these people possess transferable skill-sets

• Retaining critical talent is also becoming an increasing challenge for organizations as

there are a vast number of organizations looking to recruit from the same talent pool.

Employees are likely to leave organizations for even the slightest pay hike

• Under the current economic climate of the country and the need for stabilization as

well as innovation, organizations are finding it a challenge to develop potential leaders

for the future; leaders who will be able to innovate and lead from the front and

spearhead a resurgence for these companies

• As one can see, the critical challenges lie within the employee talent lifecycle,

signaling that increased focus and investment on talent initiatives is a necessity in

order to gear up for future growth plans within all sectors

Key HR Challenges

1 Hiring skilled talent

2 Retaining critical talent

3 Developing potential leaders

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Consumer Business &

Retail


Consumer Business & Retail Executive Summary

The median annual increment in this sector is

10% - significantly lower across most levels

as compared to last year

The variable pay percent in the sector stands

at 18.8% at the median level – a slight

increase over that of last year

Attrition rate for this sector on average is

13%. Highest attrition rates for Junior and

Middle Management – 15% - which is mainly

due to the attrition rates in Retail

Organizations attribute attrition mainly to

Better Career Opportunities and Better Pay

Elsewhere

Hiring and Retaining Talent is a key challenge

faced by the sector

22


Consumer Business & Retail Sector Snapshot

23

Industry Overview Key Challenges

• India’s FMCG sector was able to perform relatively well despite

the slowdown in the overall Indian economy during 2012

• The outlook for Indian FMCG is positive because of growing

sales, strong financials of leading players and ever increasing

urbanization

• The Indian Retail sector contributes to 22% of the country’s

GDP and also accounts for approximately 8% of the total

employment in the country

• The biggest highlight for the Retail sector in India in 2012 was

the decision of the Indian Government to allow Foreign Direct

Investment (FDI) in Multi-Brand Retail formats

• Rising per capita income is helping the sector grow. Our Deloitte

research shows a constant increase in per capita spend since

2010. The total retail spending is estimated to double in the next

five years

• E-tailing is showing a high promise for exponential growth over

the next few years

• Diverse spread of customers requires stores to stock a wide and

varied mix of merchandise to cater to such a broad demographic

• People prefer to buy most of the fruits and vegetables on a daily

basis and approaching a corner store for groceries still, thereby

creating a challenge for supermarkets / hypermarkets

• It is difficult to find suitable properties in central locations for

retail, primarily due to fragmented private holdings, infrequent

auctioning of large government owned vacant lands and

litigation disputes between owners

• The indirect taxation structure is complex in India with varying

tax rates, multiplicity of taxes and multiple tax enforcement

authorities. This has a significant impact on the Retail set up

• Challenge to mom-and-pop stores’ revenues by big foreign

brands entering the market and selling goods at discounted

rates

Source : Deloitte Retail POV “Opening More Doors”; GRDI 2012; IBEF; www.emergingmarketsdirect.com;

• India's retail sector is expected to grow to about US$ 600 billion by 2015 and to US$ 850 billion by 2020

• Traditional retail is expected to grow at 7% and reach a size of US$ 650 billion (about 76%), while organized retail is

expected to grow at 25% and reach a size of US$ 200 billion by 2020

• The FMCG sector in India has grown at 17% over the last five years and is expected to grow to US$ 100 billion by 2025

Performance Highlights


Consumer Business & Retail Participant Profile

24

• 64% of the companies participating in this sector

had an annual revenue between 500 – 1000 Cr.

• The second highest number of participants fell in

the 100 – 300 Cr. range

Annual Revenue Wise Break Up

Employee Strength

• 45% of the companies participating from this

sector have an employee strength of 500 –

2000

• The second highest participation came from

organizations who had an employee strength

between 2000 – 5000 and less than 500

18%

9%

64%

9%

100 - 300 Cr. 300 - 500 Cr. 500 - 1000 Cr. >1000 Cr.

9%

45% 18%

18%

9%

<500 500 - 2000 2000 - 5000 5000 - 10000 10000 - 25000


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12

13

14

15

16

JM

MM

SM

TM

Consumer Business & Retail Annual Increments 2013 – 14

25

• The median annual increment projected for this sector is 10.0%

• The range between the Junior and Top Management increment

medians is one of the largest of any sectors

• When compared to other sectors, the increments for Junior

Management are lowest at the median level at 8.4%



JM 7.1% 7.9% 8.4% 11.7% 12.5%

MM 8.0% 9.1% 9.6% 12.9% 13.8%

SM 9.3% 9.9% 10.3% 13.1% 14.6%

TM 10.7% 11.6% 12.0% 14.2% 15.4%


Median annual increment in this sector projected to be one of the lowest this year



Consumer Business & Retail Annual Increments 2013 – 14 (Projections) vis-à-vis 2012 – 13 (Actuals)

26

• The conservative outlook of the market is expected to

continue to influence the increment levels in this sector

with the median increments of Junior, Middle and Senior

Management expected to be lower than last year

• The highest reduction in increment is at Junior

Management level – a 3.6% point drop

• This is followed by Middle Management – a 2.4% point

drop, and Senior Management – 1.5% points below last

year’s median level


2012-13 9.0% 10.8% 12.0% 12.8% 15.3%

2013-14 7.4% 8.6% 10.0% 12.8% 13.9%


The annual increment median for this sector is projected to be 2% points lower than last year’s median


12.0% 12.0% 11.8%

10.0%

8.4%

9.6% 10.3%

12.0%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

JM MM SM TM

2012 - 13 2013 - 14


Consumer Business & Retail Variable Pay 2013 – 14

27

• Median variable pay percent for this sector is expected to be at

18.8%

• This is significantly higher than the cross-sector median and

slightly higher than last year’s median for the same sector

• Top Management median levels for variable pay percent is

projected to be 21.2%

• The variable pay percent for this sector ranges from 8.9% to

34.8% across levels



JM 8.9% 13.7% 16.3% 22.3% 28.6%

MM 10.4% 14.1% 17.9% 23.7% 30.3%

SM 12.4% 15.5% 19.4% 24.4% 32.7%

TM 14.3% 17.9% 21.2% 26.1% 34.8%


Range of variable pay percent across levels is very wide; variable pay at all levels expected to be second

highest across sectors


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14

16

18

20

22

24

JM

MM

SM

TM


Consumer Business & Retail Variable Pay 2013 – 14 vis-à-vis 2012 – 13

28


2012-13 10.0% 14.3% 18.2% 19.0% 28.0%

2013-14 9.8% 13.9% 18.8% 24.7% 30.2%


Variable pay has marginally increased across levels as compared to last year; almost no change at Top

Management level

• The median variable pay percent has increased marginally from

18.2% last year to 18.8% this year

• Considering the high turnover rates in this sector, the high

variable pay percent may indicate that there is a continued

focus within the sector of linking performance with pay across

cadres to motivate employees across levels and maintain

competitiveness

• Through this, we can also infer that organizations are

considering lower increments leading to lower fixed

components of employees’ salary and a greater emphasis on

the performance linked incentives

15.0% 14.0%

19.0%

25.0%

16.3% 17.9%

19.4%

21.2%

0%

10%

20%

30%

40%

50%

JM MM SM TM


2012 - 13 2013 - 14


Most of Top Management and almost half of Senior Management receive Driver allowance; Mobile allowance

not made available to Junior Management by some companies

Consumer Business & Retail

Key Benefits

29



3 – 5 Lacs 9.1 18.2 18.2 -

5 – 8 Lacs - - 27.3 9.1

8 – 12 Lacs - - 18.2 45.5

> 12 Lacs - - - 45.5




5000 – 8000 9.1 9.1 - -

8000 – 12000 9.1 18.2 18.2 -

12000 – 15000 - 18.2 27.3 18.2

> 15000 - - 27.3 36.4

On Actuals - - 9.1 -

Not Applicable 81.8 54.5 18.2 45.5

Driver: 81.8% and 45.5% of the companies in this sector

provide Driver or Driver Allowance for the Top Management

and Senior Management respectively

18.2% of the companies in this sector provide LTIPs to their

employees. The most preferred LTIP is Cash Plan




0 - 5000 81.8 72.7 36.4 9.1

5000 - 10000 - 9.1 18.2 18.2

10000 - 15000 - 9.1 18.2 27.3

On Actuals - - 18.2 45.5




Medical Insurance

Percentage of companies allowing leave encashment: 72.7 %

Median number of days encashable in the industry: 26 Days

Leave Encashment

64%

36% Employee, Spouse &Children



Consumer Business & Retail Human Capital Trends

30

• Attrition rates in this sector are highest at the Junior

Management level

• Given this turnover, attracting and retaining skilled talent

is the most immediate concern for organizations

• Engaging and motivating the employees to remain with

the organization as well as to perform at ever increasing

level is another significant HR Challenge

• This also explains the increases in variable pay across

grades as organizations are trying to motivate employees

and incentivize loyalty as well as high performance

Human Resource Challenges



3

Reasons for Attrition

Better career opportunities

Better pay elsewhere

Pursue further studies

• With the introduction of international players in the

industry, organizations in this sector are finding it

increasingly difficult to retain their employees

• The most common reason for attrition is better career

opportunities elsewhere as employees have a lot of

options to choose from given that their skills can be easily

transferable

• Better pay elsewhere is also a frequent reason for attrition

as employees are likely to move even for the slightest pay

increase to get more cash in hand

• Personal reasons is the third highest reason for attrition.

This may be because many employees at the lower levels

consider this sector, like the ITeS sector, as a stop-gap

solution while pursuing other avenues in their personal

lives

1

2

3 Engaging and Motivating Employees

Manufacturing


Manufacturing Executive Summary

The increments in the Manufacturing sector

are expected to be around 11.2% - the same

level as the overall cross-sector median

increment

Variable pay percent median for this sector is

projected at 17.8%

The overall attrition rate for this sector is 12%.

The highest attrition rate is at the Junior

Management level (14%)

Hiring skilled talent and developing potential

future leaders are key HR focus areas for

organizations in this sector

32


Manufacturing Sector Snapshot

33


• Deloitte’s global index, 2013, for 38 nations, has ranked India

the fourth most competitive manufacturing nation, behind China,

the US and Germany

• The Global Manufacturing Competitiveness Index, 2013, based

on a survey of CEOs, executives and other officials of 550

global manufacturing companies, has positioned India as

second five years down the line, next only to China

• India’s manufacturing sector, which accounts for around 16 per

cent of the country’s GDP, also accounts for 1.8% of the global

manufacturing pie

• Corporate India reported an average overall attrition of 19.3%

for 2012

• Manufacturing industry in India took a hit in FY2012 in terms of

growth given the ever rising fuel costs, production cuts and

temporary plant shutdowns

Source : Deloitte 2013 Global Manufacturing Competitiveness Index; IBEF

• Purchasing Managers' Index (PMI) - a measure of factory production - stood at 53.7 in November 2012, up from 52.9 in

October 2012, indicating an improvement in the overall health of the Indian manufacturing sector

• Manufacturing exports from India could increase from US$ 40 billion in 2002 to about US$ 300 billion by 2015, such an

expansion would make India rake-in a share of approximately 3.5 per cent in the world manufacturing trade



Manufacturing Participant Profile

34

• 55% of the participating companies have an

annual revenue between 500 – 1000 Cr.

• The second highest participation is accounted for

by companies between 300 – 500 Cr., followed by

the 100 – 300 Cr., and less than 100 Cr. brackets


Employee Strength

• The highest percentage of companies

participating have an employee strength of less

than 500 and between 500 – 2000

• This is followed by 26% of the companies

having employee strength between 2000 - 5000

8%

11%

21%

55%

5%

<100 Cr. 100 - 300 Cr. 300 - 500 Cr. 500 - 1000 Cr. >1000 Cr.

32%

32%

26%

3% 5% 3%

<500 500 - 2000 2000 - 5000 5000 - 10000 10000 - 25000 >25000


8

9

10

11

12

13

14

15

16

JM

MM

SM

TM

Manufacturing Annual Increments 2013 – 14

35

• The median increment for this sector is 11.2%, which is at par

with the cross-sector median

• The increment ranges across levels for this sector are quite

narrow, ranging from 9.3% to 15.9%

• Top Management median level increments are expected to be

around 12.8% which is the third highest increment across all

sectors



JM 9.3% 9.8% 10.1% 11.8% 13.4%

MM 9.9% 10.2% 10.9% 12.6% 14.0%

SM 10.4% 11.0% 11.5% 13.3% 15.2%

TM 10.8% 11.9% 12.8% 14.1% 15.9%


This sector is expecting a median annual increment of 11.2% - at the same level as the overall cross-sector

median increments



Manufacturing Annual Increments 2013 – 14 (Projections) vis-à-vis 2012 – 13 (Actuals)

36

• Rising inflation impacting fuel, transport and wage bills has

impacted the bottom lines of most organizations. This in

turn has led to a significant review of the increments given

and a conscious effort has been made to provide

increments at a lower median level in this sector. The

increments have come down from 15.0% last year to

11.2% this year

• The range of increments from 10th to 90th percentiles has

also shrunk from 9.0% - 17.0% last year to 9.5% - 13.9%

this year

• The highest decline is seen at the Junior and Middle

Management levels where the median increment levels

have witnessed a 3.9% points and 4.1% points decline

• The increment given to Top Management remains the

same as the previous two years – in the vicinity of 12.8%


2012-13 9.0% 12.0% 15.0% 15.0% 17.0%

2013-14 9.5% 10.6% 11.2% 12.7% 13.9%


Annual increment level has shown a significant decline at the median level; highest decline at Junior and

Middle Management levels


14.0%

15.0%

13.0% 13.0%

10.1% 10.9%

11.5%

12.8%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

JM MM SM TM

2012 - 13 2013 - 14


8

10

12

14

16

18

20

22

24

JM

MM

SM

TM

Manufacturing Variable Pay 2013 – 14

37


17.8%

• This is approximately 0.5% point higher than the cross-sector

median variable pay percent

• The range of variable pay at all levels has also significantly

expanded, especially at Junior Management level where the

variable pay percent ranges from 9.8% to 27.1%

• There is a significant leap of 1.6% points in the median variable

pay percent of Junior and Middle Management



JM 9.8% 13.1% 15.9% 21.7% 27.1%

MM 11.1% 14.8% 17.5% 22.4% 27.8%

SM 13.9% 16.2% 18.4% 23.3% 28.9%

TM 15.2% 17.5% 19.8% 25.5% 31.4%


Variable pay percent for this sector are projected to be more than competitive with the market level variable pay

projected



Manufacturing Variable Pay 2013 – 14 vis-à-vis 2012 – 13

38


2012-13 12.0% 16.3% 20.0% 25.0% 30.0%

2013-14 10.1% 13.6% 17.8% 22.9% 27.7%


Variable pay percent projection has seen a decline in this sector; Median variable pay across levels largely

unchanged

• The range of variable pay percent for the overall sector has

remained the same, albeit it has declined by a couple of

percentage points at all percentiles

• The variable pay percent median levels for Junior and Middle

management show a slight increase over last year’s figures,

while those for the Senior and Top Management show a

corresponding decrease over the same period

• The lower variable pay projections can be explained by the

conservative approach that organizations are bound to be

adopting for the coming year in the manufacturing sector, as

the industry as a whole witnessed a slowdown in the growth

rate

15.0% 15.0%

20.0% 21.8%

15.9% 17.5%

18.4% 19.8%

0%

10%

20%

30%

40%

50%

JM MM SM TM


2012 - 13 2013 - 14


Car provided to some Junior and Middle Management in the sector; Leave encashment median at 30 Days

Manufacturing

Key Benefits

39



3 – 5 Lacs 7.9 13.2 7.9 -

5 – 8 Lacs 13.2 18.4 23.7 26.3

8 – 12 Lacs - 15.8 26.3 36.8

> 12 Lacs - - 10.5 23.7

Not Applicable 78.9 52.6 31.6 13.2



5000 – 8000 26.3 36.8 26.3 -

8000 – 12000 - 15.8 21.1 15.8

12000 – 15000 - 5.3 15.8 21.1

> 15000 - - 15.8 31.6

On Actuals 2.6 2.6 10.5 31.6






employees. The most frequently provided LTIP is Restricted

Stock Units




0 - 5000 15.8 21.1 10.5 -

5000 - 10000 5.3 21.1 23.7 15.8

10000 - 15000 5.3 26.3 34.2 26.3

On Actuals - - 31.6 57.9

Not Applicable 73.7 31.6 - -



Medical Insurance

Percentage of companies allowing leave encashment: 44.7%


Leave Encashment

13%

53%

34% Employee Only




Manufacturing Human Capital Trends

40

• There is a challenge hiring skilled talent in manufacturing

industry as the skilled talent is more likely to choose

working in the Hi-tech industry because of better pay and

other benefits

• Identifying and developing potential leaders for future, in

order to ensure the long term success of the organizations

and increased growth of the sector, is a major challenge

in manufacturing industry

• Due to better pay in IT and other Hi-tech industry, talent is

also likely to shift from manufacturing industry to these

other sectors, making retaining critical talent a key HR

focus area for the sector



2 Developing Potential Leaders

3





• Attrition at the Junior management level is relatively low

compared to the other sectors. However, it is still a

concern for organizations in this sector

• Due to the competitive nature of the market, companies

are losing employees to better pay elsewhere mostly in

sales sector

• Pursuing higher studies is another key factor for attrition.

Employees in the engineer cadre are likely to pursue

management degrees in order to increase their chances of

rising up the management ranks

1

2

3 Retaining Critical Talent

Infrastructure &

Real Estate


Infrastructure & Real Estate Executive Summary

Increments have been conservative at 10.6%;

increments have dropped considerably at the

median level for this sector

The median variable pay for this sector is

15.4% - almost 2% points lower than the

cross-sector median

Annual average attrition rates for this sector

have been indicated to be 13% - this is

consistent across all levels of management

Career management, retaining critical talent,

etc. cited as key HR challenges in this sector

42


Infrastructure & Real Estate Sector Snapshot

43


• In 2012, the real estate and infrastructure sector accounted for

25 per cent of the total FDI inflows into India which is expected

to grow even further in 2013. Construction is expected to

account for a major chunk of this investment

• Construction development sector (including townships, housing,

built-up infrastructure & construction-development projects) has

attracted a cumulative FDI worth USD 21,765.55 million from

April 2000 to November 2012.

• Total revenue from real estate sector is around USD 75 Billion

which has been growing at a CAGR of 10%

• India has seen a high demand for residential space, commercial

space, retail space and space for hospitality industry. This can

be attributed to urbanization, growing economy, easy financing

options and growth in tourism

• Challenges to the Real Estate industry continue to revolve

around transparency of dealings, an inability to forecast

accurately as well as off-the-books deals and improper

maintenance of land records. This is further affected by the lack

of proper and systematic, urban and rural planning and

development activities by the Government

• With the slowing Indian economy and reduced consumer

interest, real estate firms are facing a difficult time. They are

increasingly turning to private equity investors to fund their

business as the traditional means of funding from banks are

getting tougher

Source : Deloitte POV “End Use Monitoring for Real Estate Industry”; IBEF; www.investindia.gov.in

• This sector is expected to grow at the rate of 30% over the next 10 years

• Increasing Government support for FDI in the real estate and infrastructure sector is expected to give a major boost for the

exponential growth predicted for this sector



Infrastructure & Real Estate Participant Profile

44

• Half of the companies participating have an

annual revenue between 500 – 1000 Cr.


companies with an annual revenue between 100 –

300 Cr. and less than 500 Cr.


Employee Strength

• 50% of the companies participating from this

sector in the survey have an employee strength

of 500 – 2000

• 40 % of the companies have less than 500

employees

20%

20%

10%

50%

<100 Cr. 100 - 300 Cr. 300 - 500 Cr. 500 - 1000 Cr.

40%

50%

10%

<500 500 - 2000 >25000


8

9

10

11

12

13

14

15

16

JM

MM

SM

TM

Infrastructure & Real Estate Annual Increments 2013 – 14

45

• The overall median increment for this sector is 10.6% - lower than

the overall cross-sector median increment level

• Senior and Top Management levels in this sector are set to

receive increments that are in the range of the overall cross-

sector median of 11.3% at the median level

• While increments in this sector vary from 7.6% to 15.6%, when

compared to the rest of the sectors, this sector fares somewhat

well on an average



JM 7.6% 8.4% 9.7% 11.8% 13.1%

MM 8.5% 9.7% 10.4% 12.4% 13.9%

SM 9.3% 10.0% 11.3% 13.1% 14.7%

TM 10.9% 11.5% 12.2% 13.9% 15.6%


Projected median annual increment for this sector is 10.6%; Junior Management expecting an increment of

9.7% at median level



Infrastructure & Real Estate Annual Increments 2013 – 14 (Projections) vis-à-vis 2012 – 13 (Actuals)

46

• Increments have declined across all levels except for Top

Management, where the increments, after falling

considerably last year, are beginning to look upwards

again

• The highest decline is witnessed at the Senior

Management level which was otherwise consistent at

around 15% for the last two years


2012-13 6.4% 10.0% 15.0% 15.9% 16.8%

2013-14 7.9% 9.2% 10.6% 12.2% 13.5%


Increments have significantly declined at the median level – from 15.0% last year to 10.6% this year


12.0% 12.5%

15.0%

10.0% 9.7%

10.4% 11.3%

12.2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

JM MM SM TM

2012 - 13 2013 - 14


8

10

12

14

16

18

20

22

24

JM

MM

SM

TM

Infrastructure & Real Estate Variable Pay 2013 – 14

47

• There has been a marginal increase in the overall median variable

pay percent level from 15.0% to 15.4%

• At Junior Management level, the sector has one of the lowest

variable pay percent medians compared to all the other sectors

• The range of variable pay percent at the Junior Management level

is also wide, going from 7.9% to 20.3%



JM 7.9% 10.0% 12.2% 17.1% 20.3%

MM 9.8% 12.5% 14.8% 17.8% 21.8%

SM 11.1% 13.8% 15.9% 19.1% 23.4%

TM 12.9% 14.7% 17.0% 21.4% 24.7%


Junior Management expected to receive lowest variable pay percent at median level when compared to rest of

the sectors



Infrastructure & Real Estate Variable Pay 2013 – 14 vis-à-vis 2012 – 13

48


2012-13 9.5% 12.8% 15.0% 15.8% 18.5%

2013-14 8.2% 11.0% 15.4% 19.1% 22.5%


Variable pay percent increase seen at Junior Management level; unchanged at the Top Management level

• The overall variable pay percent range for this sector goes from

8.2% to 22.5%

• Junior and Middle Management have seen virtually no change

in their variable pay percent levels at the median mark

• At the Senior and Top Management level, the variable pay

percent has seen a significant decline of 4.1% points and 3%

points respectively

• Last year’s trend, shown by companies in this sector, of moving

away from ad-hoc payments and more structured and planned

variable pay policies seems to be continuing. Especially at the

Senior and Top Management levels, variable pay seems to be

becoming more standardized across the sector 12.0%

15.0%

20.0% 20.0%

12.2%

14.8% 15.9% 17.0%

0%

10%

20%

30%

40%

50%

JM MM SM TM


2012 - 13 2013 - 14


LTIP not a common practice; Fuel Allowance by half the companies to Middle Management and by 90% of the

companies to Senior Management; 40% companies allow leave encashment

Infrastructure & Real Estate

Key Benefits

49



3 – 5 Lacs - 10.0 20.0 -

5 – 8 Lacs - - 30.0 10.0

8 – 12 Lacs - - 30.0 20.0

> 12 Lacs - - - 70.0




5000 – 8000 10.0 20.0 10.0 -

8000 – 12000 10.0 30.0 20.0 -

12000 – 15000 - - 40.0 10.0

> 15000 - - 10.0 30.0

On Actuals - - 10.0 60.0

Not Applicable 80.0 50.0 10 -

Driver: 90% and 70% of the companies in this sector provide

Driver or Driver Allowance for the Top Management and

Senior Management respectively

None of the participating companies provide a Long Term

Incentive Plan in this sector




0 - 5000 50.0 50.0 50.0 -

5000 - 10000 40.0 - - -

10000 - 15000 - 40.0 50.0 10.0

On Actuals - - - 90.0




Medical Insurance



Leave Encashment

20%

60%

20% Employee Only




Infrastructure & Real Estate Human Capital Trends

50

• Hiring talent has become a key challenge for the

Infrastructure players. The reason for this can be

attributed to better salaries and growth opportunities

offered by the foreign players

• Infrastructure sector has been facing a middle

management crisis where the middle management is not

groomed for the future roles. This results in attrition at

middle management due to lack of development

opportunities. As a result, developing potential leaders is

a key HR challenge

• Most of the companies are also struggling to define a

career path for the junior management




3




Better work life balance

• Increasing FDI in infrastructure and consistent growth rate

could be the key drivers for the better career opportunities

in the sector

• 70% of the participants think Better pay elsewhere

provided by competitors is one of the key reason for

attrition

• Some of the participants also believe that better work life

balance could be one of the reason for the attrition in

infrastructure and real estate sector

1

2

3 Career management

Pharmaceuticals,

Health Care and

Life Sciences


Pharmaceuticals, Health Care and

Life Sciences Executive Summary The median annual increment in this sector is

the highest across all sectors – at 13.1%

At 18%, the variable pay percent median of

this sector is also higher than the cross-

sector median

The average attrition rate for this sector is

14%. This is due to the attrition rate at the

Junior Management level which includes

Sales staff (17%)

Retaining and Engaging / Motivating

employees is a key challenge faced by this

sector

52


Pharmaceuticals, Health Care and Life Sciences Sector Snapshot

53


• The expected CAGR from 2012-16 for the Indian

pharmaceutical market is 14-17%

• At the same time, the domestic pharmaceutical market is

expected grow at a fast pace of 13-14% in 2013

• The Ministry of Commerce has proposed an ambitious Strategy

Plan to double pharmaceutical exports from US$ 10.4 billion in

2009-10 to US$ 25 billion by 2013-14

• The Government has also planned a 'Pharma India' brand

promotion action plan spanning over a three-year period to give

an impetus to generic exports

• There is a need felt within the sector for improvements in

workforce training and development, integration of information

technologies, upgrades and expansions of clinical services,

physician alignment and cost reduction

• The GDUFA (Generic Drug User Fee Act) has been introduced

in the US. As per this act, the generic companies are required to

pay user fees to USFDA, for application of drugs and

manufacturing facilities. This fee will be utilized by USFDA to

engage additional resources in order to reduce current and

pending applications and speed up the approval process. This

act was passed in 2011, which was signed into Law in July 2012

• The threat of controlled licenses being awarded to companies to

manufacture patented drugs at cheaper rates

• There is a major challenge for small and mid sized companies

who are losing their patents.

• Another challenge is the rising influence of retail in the Indian

market. This will have a result in the shift from Physicians and

manufacturers to retail over the counter medicines

Source : IBEF; Department of Industrial Policy and Promotion (DIPP) Report; Pharmaceutical Exports Council of India

• The cumulative drugs and pharmaceuticals sector attracted foreign direct investments (FDI) worth US$ 9.78 billion

between April 2000 to November 2012

• India's exports of drugs, pharmaceutical and fine chemicals grew by 27% to USD 11.19 billion for the year ended March

2012



Pharmaceuticals, Health Care and Life Sciences Participant Profile

54

• Majority of the companies participating in this

survey have a revenue between 500 – 1000 Cr.,

followed by 100 – 300 Cr.

• A small percentage of companies also have

revenues of less than 100 and between 300 – 500

Cr.


Employee Strength

• Companies with an employee strength of 2000

– 5000 account for 40% of the participants in

this sector

• The second highest participation (20%) comes

from companies with an employee strength of

less than 500 and between 500 – 2000

7%

40%

7%

47%

<100 Cr. 100 - 300 Cr. 300 - 500 Cr. 500 - 1000 Cr.

20%

20%

40%

13%

7%

<500 500 - 2000 2000 - 5000 5000 - 10000 10000 - 25000


Pharmaceuticals, Health Care and Life Sciences Annual Increments 2013 – 14

55

• At 13.1%, the median annual increment level for this sector is the

highest across all sectors this year

• Across all levels, increments are the highest as compared to any

other sector

• Increments in this sector range from 10.5% to 15.0% for Junior

Management, 10.8% to 15.9% for Middle Management, 11.2% to

16.7% for Senior Management and 12.3% to 17.5% for Top

Management



JM 10.5% 11.7% 12.4% 13.9% 15.0%

MM 10.8% 11.9% 12.8% 14.5% 15.9%

SM 11.2% 12.8% 13.7% 15.3% 16.7%

TM 12.3% 13.6% 15.1% 16.2% 17.5%


Median annual increment in this sector projected to be the highest across all sectors at 13.1%


8

9

10

11

12

13

14

15

16

JM

MM

SM

TM


Pharmaceuticals, Health Care and Life Sciences Annual Increments 2013 – 14 (Projections) vis-à-vis 2012 – 13 (Actuals)

56

• When compared to the increment range from last year, the

range this year has increased from 11.0% to 16.1% for the

overall sector

• While the increments were standard across all sectors last

year, a sharp increase in Top Management increments can

be observed this year – a jump from 12.0% to 15.1%

• Senior Management has also received considerably high

increments this year (13.7%), while those for Junior and

Middle Management have increased within the range of

1% point


2012-13 10.4% 11.5% 12.0% 12.8% 13.8%

2013-14 11.0% 12.3% 13.1% 15.0% 16.1%


Across all ranges, the increments for this sector have risen considerably, with the highest increase seen at Top

Management level


12.0% 12.0% 12.0% 12.0%

12.4% 12.8%

13.7%

15.1%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

JM MM SM TM

2012 - 13 2013 - 14


8

10

12

14

16

18

20

22

24

JM

MM

SM

TM

Pharmaceuticals, Health Care and Life Sciences Variable Pay 2013 – 14

57


18.0%

• This is significantly higher than the cross-sector median and

slightly higher than last year’s median for the same sector

• Top Management median levels for variable pay percent is

projected to be 21.2%

• The variable pay percent for this sector ranges from 8.9% to

34.8% across levels



JM 9.8% 12.5% 16.0% 21.0% 25.2%

MM 10.7% 13.4% 17.2% 22.5% 26.1%

SM 11.3% 14.1% 18.9% 23.8% 27.5%

TM 12.0% 15.2% 20.1% 24.9% 28.8%


Variable pay percent for this sector are projected to be competitive with the market



Pharmaceuticals, Health Care and Life Sciences Variable Pay 2013 – 14 vis-à-vis 2012 – 13

58


2012-13 8.7% 9.5% 15.0% 16.5% 32.0%

2013-14 10.5% 14.1% 18.0% 23.0% 27.9%


Variable pay percent increase seen at Junior Management level; unchanged at the Top Management level

• At 18%, the median variable pay percent for this sector is

higher than the cross-sector median variable pay percent

• While Junior Management has received lower increments than

the rest of the levels, the variable pay percent for this level has

witnessed a significant leap to 16.0%, indicating a push from

the companies in this sector towards greater competitiveness

• Sales incentives and performance linked pay has been

identified as the most suitable way of retaining critical sales

force employees as well as driving higher growth rates of the

organizations as well as the sector

11.0%

15.0%

20.0% 20.0%

16.0% 17.2%

18.9% 20.1%

0%

10%

20%

30%

40%

50%

JM MM SM TM


2012 - 13 2013 - 14


Leave encashment not a popular benefit in the sector; Mobile allowance for Top Management indicated to be

relatively low by 40% companies; varying medical coverage provided across the sector

Pharmaceuticals, Health Care and Life Sciences

Key Benefits

59



3 – 5 Lacs 6.7 20.0 13.3 -

5 – 8 Lacs - 6.7 26.7 13.3

8 – 12 Lacs - - 40.0 26.7

> 12 Lacs - - - 46.7

Not Applicable 93.3 73.3 20.0 13.3



5000 – 8000 - 26.7 6.7 -

8000 – 12000 - 6.7 20.0 26.7

12000 – 15000 - - 26.7 26.7

> 15000 - - 6.7 6.7

On Actuals 6.7 13.3 26.7 26.7

Not Applicable 93.3 53.3 13.3 13.3





employees. The most frequently provided LTIP is Deferred Cash




0 - 5000 66.7 66.7 60.0 40.0

5000 - 10000 13.3 13.3 - -

10000 - 15000 - 13.3 40.0 13.3





Medical Insurance

Percentage of companies allowing leave encashment: 20 %


Leave Encashment

13%

7%

47%

33%

Employee Only

Employee & Spouse




Pharmaceuticals, Health Care and Life Sciences Human Capital Trends

60

• High technology changes and advancements in the

medical field has made it difficult to get skilled talent in the

industry

• Employee turnover in this sector has made Engaging and

Retaining talent a perennial burning priority in this sector

• Due to increasing competition for developing new patents

there is an increasing pressure on the employees to

perform. This in turn has affected the motivation of

employees

• Retaining employees, especially at the sales force level,

is a critical challenge for this sector, as sales employees

find it easy to switch jobs due to easily transferable skills




3





• As many MNCs are investing directly in India and are

opening many operations, career opportunities have

widened for people in this industry

• This, coupled with the easy mobility and transferability of

skills that the sales force especially enjoys in this sector,

has led to relatively high attrition levels in this sector at the

Junior Management level

• Such employees are also likely to switch companies for

even the slightest added benefit, or pay, making “better

pay elsewhere” a key reason for attrition

• Pursuing further studies is the third key reason for attrition

indicated in this sector

1

2

3 Engaging and Motivating Employees

Financial Services


Financial Services Executive Summary


9.6%

This is a slight decrease over last year’s

increment

The variable pay in this sector stands at

20.1% at the median level

The overall attrition rate for this sector is 15%

- especially being a concern at the junior

management level where it is 21%

The key HR challenges in this sector are

hiring and retaining skilled talent, and

developing potential leaders

62


Financial Services Sector Snapshot

63


• The growth of financial sector in India at present is nearly 8.5%

per year. The rise in the growth rate suggests the growth of the

economy. The financial policies and the monetary policies are

able to sustain a stable growth rate

• The financial sector in India had an overall growth of 15%,

which has exhibited stability over the last few years although

several other markets across the Asian region were going

through a turmoil

• The opening of the financial market’s variety of products and

services were introduced to suit the need of the customer. The

Reserve Bank of India (RBI) played a dynamic role in the growth

of the financial sector of India

• The number of foreign financial institutions are on the rise as

India’s long-term potential makes it an attractive market for them

• As their counterparts do in other countries, various regulatory

authorities, including the RBI and the Ministry of Finance, play

major roles in the Indian financial services system. While many

of the proposed changes have yet to be made, central

government and RBI officials have stated their intention to

reform and open the Indian financial services sector gradually,

especially the banking sector.

• The financial services industry is expected to grow at about 9% per annum

• The recently concluded annual budget laid down various new initiatives for the financial services industry especially in the

banking sector


Source: Deloitte 2013 Financial Services Industry Outlook


Financial Services Participant Profile

64

• 55.6% of the participating companies indicated an

annual revenue of between 500 – 1000 Cr.


organizations with annual revenue between 300-

500 Cr.


Employee Strength

• The highest participation in this sector was

accounted for by companies having between

5000 – 10000 employees

• This was followed by 22% of the organizations

having between 2000 – 5000 and between

10000 – 25000 employees

10%

15%

19%

50%

<100 Cr. 100 - 300 Cr. 300 - 500 Cr. 500 - 1000 Cr.

17%

6%

22%

28%

22%

6%

<500 500 - 2000 2000 - 5000 5000 - 10000 10000 - 25000 >25000


8

9

10

11

12

13

14

15

16

JM

MM

SM

TM

Financial Services Annual Increments 2013 – 14

65

• The median increments across levels for this sector range from

9.1% for Junior Management, to 10.8% for Top Management

• The increments in this sector are the lowest across all levels and

ranges

• The focus for this sector has been directed at performance linked

incentives this year. Hence, there has been a conscious decision

of setting annual increments at a lower level by companies across

the sector



JM 6.9% 7.8% 9.1% 11.3% 13.0%

MM 7.2% 8.5% 9.4% 11.7% 14.3%

SM 7.9% 8.7% 9.9% 12.4% 15.2%

TM 8.2% 9.4% 10.8% 13.1% 15.7%


Increments in the Financial Services industry are projected to be the lowest across all sectors at 9.6%



Financial Services Annual Increments 2013 – 14 (Projections) vis-à-vis 2012 – 13 (Actuals)

66

• Compared to 2012-13, the industry as a whole has

witnessed a marginal decrease increments

• While increments for Junior and Middle Management are

lower than last year, Top Management increments have

shown a slight increase by 1.5% points

• The general mood of this sector has been quite

conservative resulting in increments considerably lower

than the overall cross-sector median level increment


2012-13 7.6% 9.3% 10.0% 11.0% 12.9%

2013-14 7.1% 8.5% 9.6% 11.5% 12.3%


Annual Increments this year have shown a marginal change from those of 2012 – 13; the highest difference is

seen at the Top Management level

10.0% 10.0% 10.0%

9.3% 9.1% 9.4%

9.9%

10.8%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

JM MM SM TM

2012 - 13 2013 - 14



8

10

12

14

16

18

20

22

24

JM

MM

SM

TM

Financial Services Variable Pay 2013 – 14

67

• Variable pay % for this sector are the highest out of all the sectors

with the median across levels ranging from 19.2% to 22.3%

• The range of variable pay across levels is very wide – ranging

from 13.1% to 45.1%

• The median variable pay percent for Junior, Middle and Senior

Management are quite close to each other

• This sector by far has the highest median variable pay across

levels when compared with all the other sectors



JM 13.1% 16.4% 19.2% 28.4% 39.7%

MM 13.7% 17.5% 19.8% 29.3% 40.6%

SM 14.8% 18.3% 20.5% 32.6% 42.7%

TM 15.5% 18.9% 22.3% 34.9% 45.1%


Variable Pay is the highest in the Financial Services sector at 20.1%



Financial Services Variable Pay 2013 – 14 vis-à-vis 2012 – 13

68


2012-13 13.1% 15.8% 20.0% 26.3% 48.0%

2013-14 13.4% 16.6% 20.1% 33.9% 42.4%


Median Variable Pay has increased for Junior Management, but reduced marginally for Top Management

15.0%

20.0% 22.0% 25.0%

19.2% 19.8% 20.5%

22.3%

0%

10%

20%

30%

40%

50%

JM MM SM TM


2012 - 13 2013 - 14

• The spread of variable pay range has remained almost the

same as in 2012-13; across the sector the variable pay range

between 10th & 90th percentile is 13.4 – 42.4% as compared to

13.1 – 48% last year

• At the median level, the variable pay has not changed. This

may also indicate that the sector is continuing its focus on

performance linked incentives rather than increasing fixed pay

components, given the intense competition that is a feature of

this industry

• The increase in Junior Management variable pay indicates that

the focus is now shifting on increasingly inducting junior

management to the performance driven culture of the

companies in the sector


ESOPs are a common form of LTIP in this sector; Leave encashment is not allowed in most organizations;

Value of Car Amount provided to Top Management in majority of the organizations in this sector

Financial Services

Key Benefits

69



3 – 5 Lacs 5.6 11.1 16.7 -

5 – 8 Lacs - - 27.8 11.1

8 – 12 Lacs - - 22.2 11.1

> 12 Lacs - - - 77.8




5000 – 8000 5.6 5.6 - -

8000 – 12000 - 16.7 11.1 -

12000 – 15000 - 5.6 27.8 11.1

> 15000 - - 27.8 16.7

On Actuals - - 11.1 72.2


Driver: 88.5 and 61.1% of the companies in this sector




employees. The most preferred LTIP is ESOPs




0 - 5000 38.9 50.0 33.3 -

5000 - 10000 16.7 27.8 38.9 5.6

10000 - 15000 - 11.1 16.7 11.1

On Actuals - - 11.1 83.3




Medical Insurance



Leave Encashment

11%

50%

39%

Employee Only




Financial Services Human Capital Trends

70

• The turnover rate in this sector is high especially at the junior

management level making hiring and retaining skilled talent a

key concern for this industry

• The highly competitive nature of the industry and easy

transferability of skills of the talent pool plays an important

role creating a challenge for organization to engage and

retain talent on a long-term basis.

• This challenge in retaining talent also has a knock-on effect

on the ability to prepare and develop future leaders within the

organization, thus making this another key HR challenge for

organizations in this sector




3




Personal reasons

• Attrition is a challenge faced by this sector primarily in the

Junior Management level

• Better career opportunities ranked as the number one reason

for attrition. This may be explained by the fact that employees,

especially at the junior level, may be in the habit of changing

companies frequently in order to move upwards through the

ranks at a quicker pace

• While organizations try and have competitive pay, they are

still losing employees to better pay elsewhere within, as well

as outside the sector

• Personal reasons also ranks high as a reason for attrition in

this sector

1

2



Information Technology Executive Summary


projected at 10.7% which is slightly lower

than last year’s increment (11%)

At a median of 16.3%, the variable pay this

year for this sector has seen a considerable

increase from last year (15.1%)

This sector has seen overall attrition of 15%

across all levels. The highest attrition is seen

at Junior and Middle Management levels –

18% and 15% respectively

Given the attrition rates, hiring and retaining

skilled talent are the major concerns for this

sector

72


Information Technology Sector Snapshot

73


• The IT sector has seen the emergence of full service players

offering not just traditional services such as application

development, maintenance and testing, but also infrastructure

facilities, consulting and system integration.

• The focus of the sector is also now shifting to a vertical-driven

approach so that the depth of services are also concentrated

upon – not just the breadth of services offered

• With the emerging focus on applications of Cloud Computing

and new platforms within the domestic market, the services

provided by the sector are getting increasingly diversified and

this represents an immense growth opportunity for the sector as

a whole

• Hiring and retaining critical talent is a perennial challenge for

this industry

• The sector also faces a concern of the skill-levels of the talent

pool that it sources employees from. Although there is an

increasing number of institutions that are providing engineering

education in the country, the skill level of the graduates remains

a concern due to the quality of the education that is imparted in

these institutions

• The western markets – especially Europe – have been slow in

their path to recovery after the economic slowdown. Hence, this

has in turn affected the performance of the sector which is as

dependent on the demand from foreign markets as it is on

domestic markets

• IT outsourcing market is set to grow at a CAGR of about 8% over 2011 to 2013

• The market for enterprise mobility solutions alone is expected to grow to USD 17 billion by 2015


Source : NASSCOM; Deloitte POV “Technology, Media & Telecommunications India Predictions 2013”


Information Technology Participant Profile

74

• At 38%, the highest participation in this sector

came from companies with annual revenues

between 500 – 1000 Cr.

• The second highest participation (31%) was that

of organizations with revenues between 300 – 500

Cr., followed by 23% falling below 100 Cr.


Employee Strength

• There was equal amount of participation (23%)

by companies with employee strengths below

500, between 2000 – 5000 and greater than

25000

• This was followed by equal participation (15%)

by companies having between 500 – 2000 and

between 5000 – 10000 employees

23%

8%

31%

38%

<100 Cr. 100 - 300 Cr. 300 - 500 Cr. 500 - 1000 Cr.

23%

15%

23%

15%

23%

<500 500 - 2000 2000 - 5000 5000 - 10000 >25000


8

9

10

11

12

13

14

15

16

JM

MM

SM

TM

Information Technology Annual Increments 2013 – 14

75

• Across all levels except Top Management, the median annual

increment ranges are projected to be lower than the overall

industry median

• Middle and Senior Management increments from the 10th – 75th

percentiles do not show much variation



JM 7.5% 8.6% 9.9% 11.1% 13.9%

MM 8.1% 9.3% 10.5% 12.7% 14.8%

SM 8.6% 9.8% 10.9% 13.2% 15.6%

TM 8.9% 10.1% 11.6% 13.9% 16.2%


Median annual increments in this sector at the Junior and Top Management level are expected to be 9.9% and

11.6% respectively



Information Technology Annual Increments 2013 – 14 (Projections) vis-à-vis 2012 – 13 (Actuals)

76

• The Information Technology sector has shown a significant

decline in the projected annual increments for Junior

Management from 12.0% last year to 9.9% this year

• At the Middle and Senior Management levels, the

increments have risen only marginally. However, at the

Top Management level the increments projected have

gone up from 9.0% last year to 11.6% this year

• The overall outlook for this sector is relatively restrained

and expected to be slightly lower than the market median.

However, this sector has fared slightly better than the ITeS

sector


2012-13 8.9% 9.8% 11.0% 12.0% 13.3%

2013-14 7.7% 9.0% 10.7% 11.9% 13.1%


Overall annual increments in this sector are expected to remain almost consistent with last year, albeit

displaying a fractional decline

12.0%

10.0% 10.0%

9.0%

9.9%

10.5% 10.9%

11.6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

JM MM SM TM

2012 - 13 2013 - 14



Information Technology Variable Pay 2013 – 14

77

• The overall median variable pay percent for this sector is 16.3%

• Across all levels, the spread of variable pay percent is relatively

wide with Junior Management getting variable pay from 9.1% -

23.2% and Top Management receiving 11.9% - 25.3%

• The variable pay median received by Junior Management in this

sector is relatively low compared to many other sectors



JM 9.1% 11.5% 14.9% 18.3% 23.2%

MM 10.7% 13.1% 16.1% 19.9% 23.9%

SM 11.6% 14.4% 17.5% 20.2% 24.6%

TM 11.9% 15.2% 18.7% 21.4% 25.3%


Variable pay ranges in this sector have shown a significantly wide spread across all levels


8

10

12

14

16

18

20

22

24

JM

MM

SM

TM


Information Technology Variable Pay 2013 – 14 vis-à-vis 2012 – 13

78


2012-13 8.4% 11.9% 15.1% 19.0% 27.5%

2013-14 9.4% 12.8% 16.3% 20.5% 24.7%


Across the sector, variable pay has shown a pattern of leveling out across management levels

• The sector median for variable pay percent is 16.3%, This is

considerably higher than last year’s 15.1%

• Across all levels, variable pay percent median for Top

Management is down to 18.7% from last year’s 25%, Senior

Management is down to 17.5% from 20%, Middle Management

has a slight increase from 15.0% to 16.1% and Junior

Management has spiked from 10.5% to 14.9%

10.5%

15.0%

20.0%

25.0%

14.9% 16.1%

17.5% 18.7%

0%

10%

20%

30%

40%

50%

JM MM SM TM


2012 - 13 2013 - 14


Medical coverage extended to close family as well by majority companies; Fuel Allowance not provided at

Junior and Middle Management; Leave encashment practice not followed by many companies


Key Benefits

79



3 – 5 Lacs - 7.7 7.7 -

5 – 8 Lacs - - 15.4 23.1

8 – 12 Lacs - - 23.1 38.5

> 12 Lacs - - - 38.5




5000 – 8000 - 7.7 15.4 -

8000 – 12000 - 7.7 15.4 7.7

12000 – 15000 - - 23.1 15.4

> 15000 - - 7.7 38.5

On Actuals - - 7.7 38.5










0 - 5000 61.5 46.2 23.1 7.7

5000 - 10000 - 15.4 15.4 15.4

10000 - 15000 - 7.7 61.5 38.5





Medical Insurance



Leave Encashment

46%

54%




Information Technology Human Capital Trends

80

• Given the growth prospects of this sector, and the job

opportunities available to employees, retaining critical

talent is emerging as the key challenge for HR in this

sector

• There is an increasing need witnessed in this sector for

developing a robust talent strategy in order to not just

retain talent but also source top quality talent from the

best schools and then developing them to go on to

become future leaders of the organizations

• Organizations in this sector are poised at a crossroad

where they have an opportunity to deal with these

challenges in time to be prepared for the growth predicted




3




Personal reasons

• Employees in this sector are well aware of the global

opportunities that are available for IT professionals from

India. As a result of this demand, they face no problems in

finding employment elsewhere and changing companies

for a better opportunity

• These opportunities are not only limited to international

transfers to other organizations, but also domestically

where a marginal increase in pay and other fringe benefits

can persuade a jump from one organization to another

• Personal reasons also rank high in the causes for attrition

and these may include marriage, further education (e.g.

MBAs), etc.

1

2


Information Technology-

enabled Services (ITeS)


ITeS Executive Summary

This sector is expecting a median annual

increment of 10.3% - a considerable decrease

from the 12.0% median increments observed

last year

At the median level, the variable pay in this

sector has risen significantly to 16.1% -

almost at par with the overall cross-sector

median

The highest attrition levels across all sectors

is seen in the ITeS industry – 17% overall and

25% at the Junior Management level on

average

Key reasons for attrition noted in this sector

are better career opportunities and better pay

82


ITeS Sector Snapshot

83


• According to a NASSCOM report, the Indian ITeS industry

continues to be the most cost-competitive provider of offshore

services

• One of the main reasons for this is the ready availability of a

large and qualified talent pool that is required for this industry to

source its people from

• Non-captive organizations are able to tailor their services to the

various needs of the clients and this flexibility in operations as

well as the round-the-clock services offered to cater to global

companies is a major advantage for this sector in India

• The increasing computer literacy in the country’s youth also

contributes to the increasing skill level of the talent pool that this

sector can tap into

• Increasing competition from other low-cost countries like China,

Brazil, Mexico, Indonesia which has made India a less favored

market for the ITeS sector

• Exposure to US and Europe slowdown has considerably

affected the ITeS sector and it is currently recuperating from the

after-effects of the same

• Changing policies in the host countries in Europe and the US

are also affecting the ITeS sector by creating an environment of

uncertainty with regards to the future business plans

• Economic uncertainties are also currently forcing organizations

to reset their operational costs and technology related spending

• Compliance to standardized processes, regional statutory

norms and internal controls is another hurdle that the sector has

to deal with

Source : NASSCOM, IBEF

• India's BPO sector exports are expected to grow by 12-14% in FY14 to touch USD 84 billion - USD 87 billion

• The industry is moving towards a “Platform BPO” approach where service delivery is more platform-centric than people

centric and on a pay-per-use model



ITeS Participant Profile

84

• Companies with an annual revenue of 500 – 1000

Cr. account for 50% of the total organizations

participating in this sector

• The second highest participation is of

organizations falling in the 300 – 500 Cr. revenue

bracket


Employee Strength

• The highest participation of companies in this

survey from an employee strength perspective,

comes from organizations who have between

500 – 2000 and more than 25000 employees

• This is followed by organizations who have

between 2000 – 5000 employees and then less

than 500 employees

14.3

28.6

50.0

7.1

<100 Cr. 300 - 500 Cr. 500 - 1000 Cr. >1000 Cr.

14.3

21.4

21.4 7.1

7.1

28.6

<500 500 - 2000 2000 - 5000 5000 - 10000 10000 - 25000 >25000


ITeS Annual Increments 2013 – 14

85

• The median increment for this sector is expected to be 10.3% this

year

• Increments for this sector are marginally lower than those for the

IT sector, across all levels

• The range of median increment across levels in this sector is

narrow, ranging from 9.5% to 11.2%

• Top Management is expected to receive some of the lowest

increment percentages across all sectors



JM 7.2% 8.1% 9.5% 11.8% 13.3%

MM 7.8% 8.9% 10.1% 12.7% 14.5%

SM 8.4% 9.3% 10.7% 13.6% 15.3%

TM 8.7% 9.8% 11.2% 14.4% 16.1%


Increments have been conservative; organizations in this sector continue to remain cautious


8

9

10

11

12

13

14

15

16

JM

MM

SM

TM


ITeS Annual Increments 2013 – 14 (Projections) vis-à-vis 2012 – 13 (Actuals)

86

• Increments this year have been cautious. This may be

attributable to the degree of uncertainty that organizations

in this sector are currently operating in

• Outsourcing policy reviews in the host countries of

organizations, in a bid to increase employment in those

countries is a threat to this sector. As a result,

organizations are adopting a conservative approach to the

increments, in order to optimize costs

• Marginally higher increments are expected at Top

Management level. However, Junior and Middle

Management have seen a significant decline in the

increment levels


2012-13 9.8% 10.0% 12.0% 14.0% 15.0%

2013-14 7.5% 8.7% 10.3% 11.8% 12.7%


Overall annual increments across the range show a significant decline from last year

12.0%

13.0%

11.0%

10.0% 9.5%

10.1% 10.7%

11.2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

JM MM SM TM

2012 - 13 2013 - 14



ITeS Variable Pay 2013 – 14

87

• The median variable pay percent for this sector is 16.1%

• The variable pay percent for this sector ranges from 8.7% to 25 %

- indicating a wide variation between organizations and levels

• Junior Management has received the widest range in variable pay

this year from 8.7% at the 10th percentile to 22.8% at the 90th

percentile

• Compared to the IT sector, the variable pay percent in this sector

is marginally lower at all levels



JM 8.7% 11.2% 14.6% 19.3% 22.8%

MM 10.3% 12.7% 15.7% 19.8% 23.3%

SM 11.2% 13.4% 16.5% 20.7% 24.1%

TM 11.6% 15.7% 18.3% 21.9% 25.0%


Median variable pay for this sector is almost at the same level as that of the overall industry median


8

10

12

14

16

18

20

22

24

JM

MM

SM

TM


ITeS Variable Pay 2013 – 14 vis-à-vis 2012 – 13

88


2012-13 12.0% 12.0% 13.5% 15.0% 15.0%

2013-14 9.1% 12.7% 16.1% 19.9% 24.4%


Variable pay for this sector has seen a sharp jump across organizations at the Junior Management level and

has stayed constant at Top Management level

• The sector median for variable pay percent is 16.1%, This is

considerably higher than last year’s 13.5%

• Variable pay percent at the median level for Junior

Management has seen a sharp jump from 10.5% to 14.6 %

since last year

• However, Top Management variable pay has remain

unchanged at the median level and Middle Management has

seen a slight decline from 18.5% to 16.5%

10.5%

15.0%

18.5% 18.3%

14.6% 15.7% 16.5% 18.3%

0%

10%

20%

30%

40%

50%

JM MM SM TM

Median Annual Variable Pay (as a % of CTC)

2012 - 13 2013 - 14


Almost all companies provide Driver to Top Management; close to half of the companies provide a Deferred

Cash plan as an LTIP; 13 Days leave encashable is the median for this sector

ITeS

Key Benefits

89



3 – 5 Lacs - 7.1 7.1 -

5 – 8 Lacs - - 14.3 28.6

8 – 12 Lacs - - 21.4 35.7

> 12 Lacs - - - 35.7




5000 – 8000 14.3 28.6 14.3 -

8000 – 12000 - 7.1 14.3 7.1

12000 – 15000 - - 28.6 7.1

> 15000 - - 14.3 42.9

On Actuals - - 21.4 -

Not Applicable 85.7 64.3 7.1 42.9









0 - 5000 57.1 42.9 21.4 7.1

5000 - 10000 - 14.3 21.4 21.4

10000 - 15000 - 14.3 57.1 35.7





Medical Insurance



Leave Encashment

43%

57%




ITeS Human Capital Trends

90

• Since the skills in this sector are easily transferrable to

different organizations within the same industry, retaining

critical talent becomes a major challenge for the Human

Resource Department of this sector

• To address the high attrition percentage faced by this

sector, they need to be aggressive in their hiring

strategies and have to go for recruitment in large numbers

especially at the lower level. In this quest for large

numbers and that too in a competitive market, hiring

becomes their second most critical challenge

• As a retention mechanism, providing added incentives

such as career growth and training becomes one of the

other major challenges for the organizations in this sector




3




Personal reasons


Junior Management level where there is plenty of

movement across organizations in the same industry

• While organizations try and pay competitively, they are still

losing employees to better pay elsewhere and this is a

perennial problem faced by all organizations in this sector

• The reason other than an attractive pay, in this industry, is

the tendency of the junior level of employees to go for

further studies, in turn using this type of employment as a

stop-gap and earn some money in the process

• Another trend observed in this sector, especially with

female employees, is that the shift timings become a

hurdle to their personal lives and hence they attrite from

these organizations

1

2


Advertising & Media


Advertising & Media Executive Summary


10.2% which indicates a slight decrease from

11% in 2012 – 13

Analysis indicates that the variable pay

percent in this sector is 14.4% at the median

level - a significant rise over last year (10.5%)

Attrition is a major concern at the Junior

Management level (23%) and the overall

attrition rate for this sector (16%) is the

second highest across all industries

Key reasons for attrition are better career

opportunities and a need for a better work-life

balance

Some of the key challenges faced by HR in

this sector are better career opportunities,

better pay elsewhere, etc. 92


Advertising & Media Sector Snapshot

93


• Television is considered the reigning emperor for entertainment

and has the most perceived advertising persuasiveness across

all age groups

• However, according to a Deloitte study, print media is expected

to remain pervasive and will continue to form part of the fabric of

the Indian landscape. Newspapers are still the second biggest

influencer behind television as the preferred advertising media

• With the rise in the use of Social Media, more and more

companies are turning to Social Networking sites to increase

their brand visibility, representing an immense growth

opportunity for the advertising segment to tap into

• Though advertising on television is not the only option, it surely

is a very effective medium. Ad rates will be affected with

digitization stepping in and would be based on more realistic

viewership ratings

• The Average Revenue Per User for TV in India remains low and

this is a significant challenge for the television industry

• As the printing industry rejuvenates itself, the focus will be on

making investments in digital printing, which represents a

market growth opportunity for technology vendors, as well as,

users

• More people read newspapers than ever before, thanks to the

many ways they now can be accessed. Publishers will need to

find more ways to match that growth with revenues from other

avenues, such as, the digital platform

• The television sector has grown by around 12.2% between 2007 and 2012 and is expected to expand at a compounded

annual growth of 11% to hit USD 15 billion by 2017, up from the current USD 9 billion

• New newspapers being published will continue to grow at around 6% every year


Source : Deloitte POV “The State of Media Democracy in India” and “Technology, Media & Telecommunications India Predictions 2013”


Advertising & Media Participant Profile

94

• Half the companies participating in this sector

have an annual revenue between 100 – 300 Cr.

• The second highest participation comes from

companies with revenues between 300 – 500 Cr.


Employee Strength

• 38% of the participating organizations had an

employee strength of less than 500, followed by

25% organizations with employee strength

between 500 – 2000 and between 2000 - 5000

13%

50%

38%

<100 Cr. 100 - 300 Cr. 300 - 500 Cr.

38%

25%

25%

13%

<500 500 - 2000 2000 - 5000 5000 - 10000


8

9

10

11

12

13

14

15

16

JM

MM

SM

TM

Advertising & Media Annual Increments 2013 – 14

95

• Increment ranges across all levels are expected to get narrower

as compared to last year, with the widest range seen at Top

Management level – 9.3% to 17.7%

• There is not much variation seen between the increments

projected at the median level across Junior to Senior

Management – these range from 9.0% at Junior Management to

10.5% at Senior Management level



JM 7.3% 8.1% 9.0% 11.9% 14.4%

MM 8.0% 8.7% 9.8% 12.7% 15.2%

SM 8.7% 9.4% 10.5% 13.9% 16.5%

TM 9.3% 10.2% 11.6% 14.6% 17.7%


Annual increment ranges in this sector are expected to be narrow across all levels, and lower than 2012 – 13



Advertising & Media Annual Increments 2013 – 14 (Projections) vis-à-vis 2012 – 13 (Actuals)

96

• This sector is expected to see a decrease in the annual

increments between 1 – 1.5% from the 10th to the 75th

percentiles

• The greatest decline is seen at Junior and Middle

Management levels with 6% and 5.2% points reduction

respectively

• Media also has its fair share of challenges, with rising

operational costs contributing to a need for a conservative

approach


2012-13 8.0% 10.0% 11.0% 15.0% 15.4%

2013-14 7.5% 8.9% 10.2% 13.6% 15.1%


Compared to 2012 – 13, the sector is expected to see the highest decline in annual increments in Junior and

Middle Management levels

15.0% 15.0%

12.5% 12.5%

9.0% 9.8%

10.5%

11.6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

JM MM SM TM


2012 - 13 2013 - 14


Advertising & Media Variable Pay 2013 – 14

97

• Variable pay percent projections for this sector appear to be

conservative at the median level when compared to the other

sectors

• At the median level, there is a marked increase in the variable pay

percent from Senior to Top Management of almost 2% points –

from 14.9% to 16.7%

• Variable pay percent projected for this sector at the median level

for Junior Management is the second lowest across all sectors



JM 10.5% 12.0% 13.5% 17.6% 22.3%

MM 11.2% 12.9% 14.1% 18.7% 23.2%

SM 12.1% 13.7% 14.9% 19.3% 23.9%

TM 13.0% 14.5% 16.7% 21.0% 24.7%


Variable pay in the Media and Advertising sector (14.4%) is expected to be the lowest across all sectors


8

10

12

14

16

18

20

22

24

JM

MM

SM

TM


Advertising & Media Variable Pay 2013 – 14 vis-à-vis 2012 – 13

98


2012-13 5.0% 7.5% 10.5% 14.0% 21.2%

2013-14 10.7% 12.2% 14.4% 18.5% 22.6%


Junior and Middle Management have experienced a significant increase in variable pay percent; however, this

is still lower than the trend across sectors

• The lower variable pay percent is expected to be around 10.7%

and the higher percent is projected at 22.6%

• The sector median variable pay stands at 14.4%; lower than

any other sector

• This is primarily attributable to the low variable pay percent

offered at Junior and Middle Management levels. Although

these levels are experiencing a significant increase over last

year, the sector median for these levels is still low when

compared to other sectors

2.5%

7.0%

10.0%

15.0%

13.5% 14.1% 14.9% 16.7%

0%

10%

20%

30%

40%

50%

JM MM SM TM


2012 - 13 2013 - 14


Fuel and Mobile allowances low across most levels; Median encashable leave days – 22; LTIP not a common

practice in this sector

Advertising & Media

Key Benefits

99



3 – 5 Lacs - - 25.0 -

5 – 8 Lacs - 12.5 - 12.5

8 – 12 Lacs - - 37.5 -

> 12 Lacs - - - 62.5

Not Applicable 100.0 87.5 37.5 25.0



5000 – 8000 - 50.0 - -

8000 – 12000 - - 37.5 -

12000 – 15000 - - 37.5 37.5

> 15000 - - - 62.5

On Actuals - - - -


Driver: 75% and 50% of the companies in this sector provide

Driver or Driver Allowance for the Top and/or Senior

Management






0 - 5000 37.5 37.5 37.5 -

5000 - 10000 25.0 37.5 37.5 -

10000 - 15000 - 25.0 25.0 12.5


Not Applicable 37.5 - - -



Medical Insurance



Leave Encashment

25%

37%

38%

Employee Only




Advertising & Media Human Capital Trends

100

• The ability to develop managers who will be able to take

up potential leadership positions seems to be a significant

challenge in this industry. There is a need to develop

potential leaders to assume leadership positions in the

organization in the long term

• Hiring and retaining critical talent are also indicated to be

critical Human Resource challenge being faced by

leaders today

• The failure to hire and retain qualified people is costly in a

number of ways like loss of training investment, need for

higher inventory et al – in an industry where talent is a key

resource that the profitability of the organizations depends

upon to a very large extent




3



Better work life balance

Personal reasons


Junior Management level. This may be due to the fact that

these jobs are often not perceived as career builders in the

short run and employees are unable to see a clear career

path for themselves. Hence, employees opt for better

career prospects in whichever field that they can move to

from this sector

• The need for an improved work-life balance is one of the

top three reasons for attrition and this is something that the

sector as a whole may need to look at particularly

• The third focus area also reflects that employees also

leave organizations for a variety of personal reasons

ranging from relocation to marriage and are unable to

continue with work due to the aforementioned lack of work

life balance

1

2


Energy & Resources


Energy & Resources Executive Summary

The median increments in this sector are

projected to be the second highest this year

at 12.4%

Variable pay has risen over last year’s median

level to 16.5%. However, this is almost 1%

point lower than the cross-sector median

level

Average annual attrition in this sector is lower

than other sectors, at 12%

Employees are more likely to attrite in this

sector for pursuing higher studies, better pay

and better career opportunities

102


Energy & Resources Sector Snapshot

103


• The global energy demand is likely to grow by more than one-

third by 2035, with China, India and the Middle East accounting

for 60% of the increase

• India is the fourth largest primary energy consumer, after China,

USA and Russia and it accounts for more than 4.6 % of total

global annual energy consumption

• Coal is the mainstay of India’s energy sector and accounts for

over 50% of primary commercial energy supply and of the total

power generated in the country, 69% comes from coal based

thermal power stations

• India’s power sector and the oil and gas sector are expected to

undergo major expansion, as the country’s energy sector gears

itself to sustain economic growth rates of above 6% over the

next 5 years

• India has a high import dependence for energy, especially crude

oil and natural gas, which amounts to high vulnerability and

compromised energy security of the nation

• The coal sector has been facing challenges both in terms of

domestic as well as imported supplies as these have been

stagnating due to India’s exponential growth in demand

• Pricing continues to remain a key concern in the India energy

sector both in terms of hydrocarbon and coal sector. There is a

pressing need to bring in independent regulator in the coal

sector and develop regulations around development of coal

blocks at an improved pace

• The investment environment in the oil & gas upstream sector is

getting affected due to regulatory uncertainties as contract

administration is currently handled by the Government and not

an independent regulatory body

Source : Deloitte POV “Long Term Energy Security”

• Demand for conventional energy in the past five years has demonstrated an increased pace with natural gas growing at

highest rate of over 10% CAGR

• Natural gas constitutes around 10 percent of India's total primary energy basket

• Over the period 2006-07 to 2011-12 coal consumption has increased at a CAGR of 7.40% year on year



Energy & Resources Participant Profile

104

• Highest participation in this sector was from

organizations with an annual revenue between

500 – 1000 Cr. The second highest participation

came from organizations with annual revenue

between 100-300 Cr.


Employee Strength

• 36% of the participating organizations had an

employee strength of under 500 and between

500-2000, followed by 27% organizations with

an employee strength between 500 – 2000

employees

36%

36%

27%

<500 500 - 2000 2000 - 5000

18%

27% 36%

18%

<100 Cr. 100 - 300 Cr. 500 - 1000 Cr. >1000 Cr.


Energy & Resources Annual Increments 2013 – 14

105

• The overall median increment for this sector is 12.4%. This is

almost 1% point higher than the cross-sector increment median of

11.3%

• The range of annual increments is not very wide in this sector –

going from 9.7% to 15.1% across levels

• When compared to other sectors, this sector is expected to give

the second highest median increments to the Top Management,

well above the cross-sector median for the same level



JM 9.7% 10.8% 11.4% 12.7% 13.2%

MM 10.6% 11.3% 12.0% 13.3% 13.9%

SM 11.4% 12.0% 12.7% 13.8% 14.3%

TM 12.2% 12.8% 13.6% 14.5% 15.1%


This sector is projected to receive higher median increments than the overall cross-sector median


8

9

10

11

12

13

14

15

16

JM

MM

SM

TM


Energy & Resources Annual Increments 2013 – 14 (Projections) vis-à-vis 2012 – 13 (Actuals)

106

• While the median annual increment is lower this year when

compared to the last year, it is still higher than the overall

cross-sector median

• Top Management level, at 13.6%, is projected to receive

increments significantly higher than last year (10.5%)

• Increments in this sector seem to have shrunk across the

ranges from the 10th to the 90th percentile – ranging from

10.8% to 14.8%


2012-13 8.5% 12.4% 13.8% 14.0% 15.0%

2013-14 10.8% 11.5% 12.4% 13.3% 14.8%


The median annual increment projected for Top Management is significantly higher than last year


12.5% 12.5% 12.5%

10.5% 11.4%

12.0% 12.7%

13.6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

JM MM SM TM

2012 - 13 2013 - 14


8

10

12

14

16

18

20

22

24

JM

MM

SM

TM

Energy & Resources Variable Pay 2013 – 14

107

• The range for variable pay across levels in this sector has

significantly expanded compared to last year

• There is not much variation between the median levels of variable

pay at the Junior, Middle, Senior and Top Management levels

• When compared across all sectors and levels, variable pay for all

levels remains one of the lowest in the Energy & Resources

sector



JM 9.1% 12.9% 15.2% 18.9% 22.4%

MM 10.5% 13.6% 16.0% 19.7% 23.7%

SM 11.3% 14.8% 16.7% 20.1% 24.8%

TM 12.2% 15.3% 17.9% 21.3% 25.5%


Median variable pay for this sector is lower than the cross-sector median; higher than last year



Energy & Resources Variable Pay 2013 – 14 vis-à-vis 2012 – 13

108


2012-13 8.7% 10.8% 13.3% 15.9% 18.4%

2013-14 9.7% 12.5% 16.5% 20.8% 24.9%


Variable pay has marginally increased across levels as compared to last year; almost no change at Top

Management level

• The sector median for variable pay percent is 16.5%

• As seen over the last two years, variable pay percent median

for Junior and Middle Management has seen a continual

increase

• At Top Management, after the sharp decline in variable pay

percent observed last year, the median level has now

increased marginally over last year’s median to figure at 17.9%

• Organizations in this sector continue to face slower growth

rates. As a result, performance related bonuses for Top

Management have been projected at lower levels

12.3% 13.3% 14.8%

17.3%

15.2% 16.0% 16.7% 17.9%

0%

10%

20%

30%

40%

50%

JM MM SM TM


2012 - 13 2013 - 14


22 Days leave encashment allowed at median; Fuel Allowance not provided to Junior Management and by

majority of the companies to Middle Management either

Energy & Resources

Key Benefits

109



3 – 5 Lacs - 18.2 9.1 -

5 – 8 Lacs - 18.2 27.3 -

8 – 12 Lacs - - 45.5 27.3

> 12 Lacs - - - 63.6

Not Applicable 100.0 63.6 18.1 9.1



5000 – 8000 - 27.3 9.1 -

8000 – 12000 - 18.2 27.3 -

12000 – 15000 - - 27.3 18.2

> 15000 - - - 27.3

On Actuals - - 18.2 54.5






employees. The most frequently provided LTIP is ESOPs




0 - 5000 72.7 63.6 36.4 9.1

5000 - 10000 9.1 9.1 - -

10000 - 15000 9.1 27.3 63.6 18.2


Not Applicable 9.1 - - -



Medical Insurance

Percentage of companies allowing leave encashment: 81.8 %


Leave Encashment

64%

36% Employee, Spouse &Children



Energy & Resources Human Capital Trends

110

• The top HR challenges for 2012-2013 broadly reflect the

components of the talent management cycle which begins

with hiring of skilled talent, retaining critical talent and

developing them to become potential leaders of their

organizations

• Hiring the right kind of talent for the industry has come up

as the biggest challenge indicating that organizations face

a concern to find talent with the right kind of skill sets

• Retaining the critical workforce then is the second biggest

concern considering the competition vying for the same

talent pool

• Along with these concerns, developing potential leaders

is the other major challenge faced by this industry




3





• Attrition is a challenge faced by this sector equally across

all the levels

• The employees are always open to better career

opportunities, and it has emerged as the top reason for

attrition

• While organizations try and pay competitively, they are still

losing employees to better pay elsewhere due to the

intense fight for skilled talent in this sector

• Employees are also looking to upgrade their skills and

education and leaving organizations to pursue higher

education

1

2


Hospitality


Hospitality Executive Summary

This sector has been introduced in this study

for the first time

The median increment in this sector (11.1%) is

almost at par with the overall cross-sector

median

Variable pay (17.5%) is slightly higher than

market median; however, range of variable

pay across percentiles and levels is

considerably high

Average annual attrition in this sector is

recorded at 13%

Prime reasons for employee attrition in this

sector are pursuing higher studies and better

pay and career opportunities

Employee career management is a key HR

challenge in this sector 112


Hospitality Sector Snapshot

113


• Hospitality industry consists of 3 main sectors which are

tourism, restaurants and hotels

• According to the Planning Commission, the sector creates more

jobs per million rupees of investment than any other sector of

the economy

• The contribution of this industry to India's GDP is around 8%

with around 10% of the country’s total population employed in

this sector

• Recently, a large numbers of foreign players have entered into

the hospitality sector – especially tourism and hotels

• The World Travel and Tourism Council (WTTC) named India

along with China as one of the fastest growing tourism

industries for the next 10 to 15 years

• One of the major challenges in the Tourism industry is that it is

highly seasonal. The revenue and manpower requirements

change sharply from season to season

• High seasonality leads to shortage / excess of manpower during

the various seasons

• Quality of manpower is important in the hospitality industry. The

industry provides employment to skilled, semi-skilled, and

unskilled labor directly and indirectly. Due to the labor intensive

nature of this sector, and lack of educational institutes, it

becomes challenging to source the right quality of manpower

Source : IBEF; www.investindia.gov.in

• The Indian tourism and hospitality industry experienced a growth of 24.6% during 2010–2012 timeframe

• Forex earnings from tourism in rupee terms during 2012 were USD 17.27 billion with a growth of 21.8% over 2011



Hospitality Participant Profile

114

• Nearly 45% of the companies participating in this

sector had an annual revenue of less than 100 Cr.

• The second highest participation in this sector was

from organizations with an annual revenue

between 200 – 500 Cr., followed by 100 – 300 Cr.


Employee Strength

• A vast majority of the participating companies,

approximately 63%, have an employee strength

of under 500

• The second highest participation of companies

falls in the 500 – 2000 employees bracket

44.4

22.2

33.3

<100 Cr. 100 - 300 Cr. 300 - 500 Cr.

63% 38%

13%

<500 500 - 2000 2000 - 5000


8

9

10

11

12

13

14

15

16

JM

MM

SM

TM

Hospitality Annual Increments 2013 – 14

115

• There is a staggered increase in the increment medians between

the Junior and Top Management increment levels in this sector

• This sector is expected to give the Top Management the third

highest increments across industries. This may be used as a tool

to incentivize members of Top Management to remain with the

organization in an industry where people frequently shift jobs



JM 8.4% 9.1% 9.8% 11.2% 12.9%

MM 9.2% 9.9% 10.4% 12.1% 14.7%

SM 10.6% 11.2% 11.9% 13.9% 16.1%

TM 11.9% 12.7% 13.1% 15.3% 17.6%


This sector has been introduced for the first time; median increment level for this sector is 11.1%; high

increments at median level for Top Management



Hospitality Annual Increments 2013 – 14 (Projections) vis-à-vis 2012 – 13 (Actuals)


• At the median level, the increments for this sector is

expected at 11.1%, slightly lower than last year, and very

close to the overall cross-sector median increment level

• This sector has largely shown consistency in the

increments between last year and this year, indicating that

the performance forecasts may be similar this year

• Top Management is expecting increments at 13.1% and

Junior Management at 9.8%



2012-13 9.4% 10.6% 11.5% 13.9% 15.1%

2013-14 9.3% 10.4% 11.1% 12.6% 13.7%

Increments have reduced marginally across the ranges; Junior Management expecting increment at the same

level as last year

10.0% 10.9%

12.5%

13.6%

9.8% 10.4%

11.9%

13.1%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

JM MM SM TM

2012 - 13 2013 - 14


Hospitality Variable Pay 2013 – 14

117



Median variable pay percent for this sector is slightly higher than cross-sector median (17.5%); variable pay

percent ranging widely from 9.3% to 27.3%


• Across levels, the variable pay percent has a wide range from the

10th to 90th percentiles

• Performance linked pay is certainly looked at as a retention tool,

especially at Junior and Middle Management level, as well as an

incentive to drive higher performance levels in a service industry

with intense competition


JM 9.1% 12.8% 16.9% 21.7% 26.1%

MM 10.8% 13.1% 17.2% 23.1% 27.8%

SM 11.2% 14.4% 18.0% 24.6% 29.2%

TM 12.5% 15.9% 19.7% 26.2% 31.5%


2013 – 14 9.6% 13.2% 17.5% 22.4% 27.3%

8

10

12

14

16

18

20

22

24

JM

MM

SM

TM

Overall Industry Variable Pay Range


Driver / Driver allowance provided by majority of the organizations to Top and Senior Management level; Fuel

allowance not provided by many companies across several levels

Hospitality

Key Benefits

118



3 – 5 Lacs 11.1 11.1 22.2 -

5 – 8 Lacs - - 22.2 22.2

8 – 12 Lacs - - 44.4 22.2

> 12 Lacs - - - 55.6




5000 – 8000 - 22.2 - -

8000 – 12000 - - - -

12000 – 15000 - - 55.6 33.3

> 15000 - - - 55.6

On Actuals - - - -

Not Applicable 100.0 77.8 44.4 11.1









0 - 5000 11.1 11.1 22.2 -

5000 - 10000 11.1 33.3 22.2 -

10000 - 15000 - - 44.4 44.4

On Actuals - - 11.1 55.6




Medical Insurance



Leave Encashment

33%

56%

11%

Employee Only




Hospitality Human Capital Trends

119

• High employee turnover in this sector has made attraction

and retention of talent a critical challenge

• Tourism industry amongst hospitality suffers from lack of

availability of trained employees due to limited

educational institutions in tourism.

• Due to high competition and a lot of foreigner players

entering in hospitality space, it has become critical to

retain the critical manpower for the existing players

• Employees in this industry also feel the need for having a

defined career path of growth. The existing lack of clarity

could be attributed to the highly fragmented nature of

industry




3





• With the introduction of the foreign players in the market,

employees get a better salary and also good career

opportunities because of the large size of the players

• It was observed that many of the employees join the

tourism industry to support their education or their family.

These employees tend to leave the organizations to

complete their further studies

• It was also observed that Hospitality industry was not

perceived as an industry where one can make a long term

career by many of the employees, due to which

employees show an apprehension while getting

associated with the industry

1

2

3 Career Management

Logistics


Logistics Executive Summary

This sector has been introduced in this study

for the first time

This sector has the second lowest increment

median level across all sectors – 9.8%

Variable pay percent median of this sector is

15.6% with not much variation across levels

Organizations in this sector indicate an

average overall attrition rate of 11%

Hiring the right talent and developing future

leaders are key HR focus areas going forward

for organizations in this sector

121


Logistics Sector Snapshot

122


• The logistics industry is expected to grow at 15-20% CAGR a

year to reach around USD350bn by 2015 from its current size of

around USD80bn.

• Several factors helped the growth of logistics industry in India

over the last decade that include changing tax system as well as

a rapid growth in industries such as automobile,

pharmaceuticals, FMCG and of organized retail

• Increase in foreign trade and India becoming a global

manufacturing hub is another reason

• Overall, the industry has generated employment for 45 million

people in the country

• FDI and GST are yet to be implemented in this sector.

Furthermore, if the governments plan to allow foreign direct

investment (FDI) in multi-brand retail and/or introduce the goods

and services tax (GST) is implemented, corporates are likely to

tie up with logistics experts to improve efficiency, leading to a

further rise in outsourced logistics.

• Also it will significantly reduce the number of warehouses

manufacturers are required to maintain in different states,

thereby resulting in a substantial increase in demand for

integrated logistics solutions.

• Increased efficiency and productivity of the transport system

would result in lower transit times.

• Technology usage is still very low in India, which restricts the

scope of increasing efficiency and productivity

• According to industry analysts, logistics costs in India are

among the world’s highest and outside of the metros and a few

cities, the delivery time is very uncertain

Source : Fitch Ratings; Dinodia Capital “Indian Logistics Industry”

• The revenue of the industry currently stands at USD 80 billion

• Retail, Automobile, Pharmaceuticals, and FMCG are emerging verticals within the logistics sector, showing potential for

growth in the near future



Logistics Participant Profile

123

• Half the companies participating in this sector

have an annual revenue of 500 – 1000 Cr.

• A high percentage (38%) of companies in this

sector have annual revenues between 100 – 300

Cr. as well

• 13% of the companies have a revenues between

300 – 500 Cr.


Employee Strength

• 38% of the companies in this sector have

between 2000 – 5000 and 5000 – 10000

employees

• 13% of the companies have less than 500

employees and 13% of the companies have

between 500 – 2000 employees

38%

13%

50%

100 - 300 Cr. 300 - 500 Cr. 500 - 1000 Cr.

13%

13%

38%

38%

<500 500 - 2000 2000 - 5000 5000 - 10000


Logistics Annual Increments 2013 – 14

124

• This sector has the lowest median increment for Top

Management across all sectors

• Across all levels, increments are expected to range from 7.2% to

12.9%, indicating that there is not much variation projected in

increments across levels



JM 7.2% 8.1% 8.9% 9.7% 10.6%

MM 7.8% 8.6% 9.5% 10.4% 11.1%

SM 8.4% 9.7% 10.3% 11.2% 11.7%

TM 9.1% 9.9% 10.7% 11.8% 12.9%


This sector has been introduced for the first time; median increment level for this sector is 9.8% - second

lowest increment level across all sectors


8

9

10

11

12

13

14

15

16

JM

MM

SM

TM


Logistics Annual Increments 2013 – 14 (Projections) vis-à-vis 2012 – 13 (Actuals)


• Increments across this sector are expected to be lower

than last year.

• At the median level, the increment is expected at 9.8%,

almost 1% point below last year’s median doled out

• From the 10th to the 90th percentiles, the increments are

expected to be lower than those given out last year

• Top Management is expecting a decline in increment this

year by around 1.1% points, whereas for Junior

Management, the increments are almost the same as last

year



2012-13 7.6% 8.4% 10.6% 12.2% 13.0%

2013-14 7.4% 8.1% 9.8% 11.7% 12.5%

Junior Management increments almost same as last year; Top Management expecting decline in increment by

more than 1% point

9.1%

10.2% 10.9%

11.8%

8.9% 9.5%

10.3% 10.7%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

JM MM SM TM

2012 - 13 2013 - 14


Logistics Variable Pay 2013 – 14

126



Projected median variable pay percent for this sector (15.6%) is significantly lower than the market median


• While the range of variable pay percent across levels varies

significantly, most companies are expected to give variable pay

percent on the lower side in this sector

• Very little variation expected in the variable pay percent median

for Junior, Middle and Senior Management


JM 8.1% 11.2% 14.7% 17.7% 20.6%

MM 8.8% 11.5% 15.1% 18.6% 21.4%

SM 9.7% 12.2% 15.9% 19.3% 22.6%

TM 11.5% 13.9% 17.4% 20.1% 23.2%


2013 – 14 8.4% 11.4% 15.6% 19.4% 22.8%

Overall Industry Variable Pay Range

8

10

12

14

16

18

20

22

24

JM

MM

SM

TM


Most companies provide Driver / Driver allowance for Top and Senior Management; 20 Days encashable at

median level; ESOPs provided by 37.5% of companies in this sector

Logistics

Key Benefits

127



3 – 5 Lacs 12.5 12.5 - -

5 – 8 Lacs - 37.5 12.5 -

8 – 12 Lacs - - 50.0 12.5

> 12 Lacs - - - 75.0

Not Applicable 87.5 50.0 37.5 12.5



5000 – 8000 12.5 25.0 - -

8000 – 12000 - 12.5 25.0 -

12000 – 15000 - 12.5 50.0 -

> 15000 - - 12.5 37.5

On Actuals 0.0 - - -

Not Applicable 87.5 50.0 12.5 62.5









0 - 5000 50.0 37.5 12.5 -

5000 - 10000 - 37.5 37.5 -

10000 - 15000 - 12.5 50.0 12.5





Medical Insurance



Leave Encashment

75%

25%




Logistics Human Capital Trends

128

• This sector will experience exponential growth because of

which movement in jobs might be seen

• Companies feel the need to develop a robust Talent

Strategy in order to retain their quality talent as well as

attract the right talent

• Companies also feel the need to invest in developing

capabilities and fostering growth of their employees

• Succession Planning is vital for sustaining long term

growth and strategy for companies in this sector




3




Personal reasons / Pursue further

studies

• Better pay is one of the main reasons employees seek

employment elsewhere. Companies must be aware where

their compensation lies vis-à-vis the market to stay

competitive

• Some cited further studies as a reason to leave a job.

Organizations can look at developing education plans and

other benefits or allowing employees to pursue executive

education courses while staying with the company

1

2


129

Contents

Survey Details

Survey Highlights



Contact Us

130

Contents

Survey Details

Survey Highlights



Contact Us


Contact Us

131

P. Thiruvengadam National Practice Leader


Direct: +91 80 6627 6108

Email: [email protected]

Dr. Vishalli Dongrie Senior Director, West Region

Head – Talent, Performance and Rewards


Direct: +91 22 6185 4280; +91 9833973458


Shivram Sethuraman Director, Rewards


Direct: +91 44 6688 5000; +91 9841098482


Saptarshi Chatterjee Manager


Direct: +91 22 6185 4549; +91 9819951648


Gaurav Warudi Consultant


Direct: +91 22 6185 4574; +91 9860584841


Steve Sam Consultant


Direct: +91 22 6185 4577; +91 9619783064


For technical queries, please reach out to the following:

Sucheta Hota Director, HR Transformation


Direct: +91 124 679 2323; +91 9811901669


mailto:pthiruvengadam@deloitte.,com

mailto:[email protected]






132

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