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EXECUTIVE SUMMARY............................................................................................................. 3 RESEARCH METHODOLOGY ................................................................................................... 4 EMERGING CHALLENGES FOR HR LEADERS.................................................................... 9 COMPENSATION AND BENEFIT IN PERSPECTIVE ......................................................... 12 COMPENSATION STRUCTURES TODAY.............................................................................. 23 PERCEPTION OF CURRENT COMPENSATION & BENEFIT POLICIES........................ 28 EMERGING TRENDS IN COMPENENSATION & BENEFITS ........................................... 33 ANNEXURE................................................................................................................................. 37
EXECUTIVE SUMMARY This is the second year of publication of the annual Gallup-Businessworld Compensation and Benefit study. The aim of this study, besides identifying pay-scales across levels for select industry sectors, is also to understand how aspirations and expectations of white-collar employees are shaping up through the years. The study has therefore been conducted in two separate legs- the Employee Leg and the HR Head leg, both of which involved both qualitative and quantitative research. Gallup studied Salary packages across sectors. The IT sector leads by miles when it comes to salary packages offered at the Entry and Junior levels. It is at the Middle level that the churn really happens. While IT by far continues to lead when it comes to salary packages, Telecom comes a close second. At the Senior levels, it is Telecom which offers the highest salaries with IT coming next. Despite talk about the emerging retail sector, the industry is the lowest pay-master among all sectors studied. It is BPO however, which offers the biggest salary jump upon promotion fromJunior to Middle and Middle to Senior Management. Increments upon promotion are comparatively small in the Manufacturing Sector. The good news is that HR decision-makers of leading organizations have their finger very much on the pulse of employee opinion when it comes to factors, which attract talent to an organization. Compensation is critical but what is more important is Career Growth and learning Opportunities. Corporate Image goes far beyond an attractive package. HR Managers are aware of the need to package the organization as a desirable place to work. As an HR Leader put itCorporate Image is not just about how we come across in our campus placements or if we pay top dollar. “It is also about what an employee goes back and tells his spouse about his day at work. It is our effort that no employee ever needs to say ‘oh lets not talk about work please’ when he is with friends” Compensation is more of a hygiene factor but an important one. This is something that both, employees and HR Managers are in agreement with. Overall, employees were appreciative of the trend towards performance -based pay, much more than HR Managers gave them credit for. They, however, felt there was scope to innovate around compensation structuring especially given the changing social (increasing number of women in the workforce,) and economic conditions (Market yielding higher returns than PF) in the country. Employees also wanted more flexibility and more say in how their salaries were structured. Contrary to HR Manager opinion, they did not consider Car schemes more important than retirals. They viewed ESOP’s with cautious optimism, seeing ESOP’s as attractive, yet preferring a spot payment to an equal amount in ESOP’s. Very much like last year, Infosys, the Tata Group and Wipro were perceived to have the best compensation and benefits policies.
Context of the Study:
The Gallup-Businessworld Compensation Survey aimed to benchmark current practices in the area of Compensation and Benefits and understand how Organizations are effectively using Compensation and Benefits as a vehicle for enhancing productivity and organizational excellence.
The broad objectives of the study were • • To understand emerging trends in the field of compensation and benefits. To understand the top management view of the evolving expectations of employees and the effectiveness of existing practices in place in terms of boosting employee engagement and enhancing organizational effectiveness. To identify best practices in the area of compensation structuring and employee engagement measures. To understand the top management view of linkage of compensation and benefit practices with business drivers. To put compensation and benefits in perspective with other tools at the disposal of an organization and study emerging trends. To benchmark current practices in compensation and benefits across industries, levels and functions within organizations. To understand changing expectations on compensation and benefits from an employee’s perspective
• • • • •
To understand changing expectations on compensation and benefits from an employee’s perspective • • • • • 5 . To identify best practices in the area of compensation structuring and employee engagement measures. Research was conducted in two phases -Qualitative and Quantitative. To understand the top management view of the evolving expectations of employees and the effectiveness of existing practices in place in terms of boosting employee engagement and enhancing organizational effectiveness. To put compensation and benefits in perspective with other tools at the disposal of an organization and study emerging trends. The objective was to validate inputs gleaned from qualitative research and address the survey objectives stated above. The purpose of this phase was to identify potential trends and provide inputs towards designing an instrument for the quantitative phase. HR managers/ Compensation managers were considered representatives of the employer viewpoint. To benchmark current practices in compensation and benefits across industries. To understand the top management view of linkage of compensation and benefit practices with business drivers. levels and functions within organizations. Objectives of the Qualitative Phase: • • To understand emerging trends in the field of compensation and benefits. The qualitative phase was largely exploratory involving Focus Group Discussions. In-depth one on one and telephonic interviews.Research Design: In order to present an unbiased perspective of Compensation & Benefit practices the study was designed to include both employers and employees. The quantitative phase involved administering semi-structured questionnaires.
IT. Financial sector (Bank/Insurance). Telecom. BPO/ITES FMCG Retail Consumer Durables Within each sector. o o o o o o o o o Manufacturing. organizations which satisfied all of the below mentioned criteria were identified as targets for the study on the basis of the following Broad Guidelines o Reputation as an employer of choice o Reputation for having groundbreaking people practices o Profitability and position in the market 6 . Pharmaceuticals.To get a larger perspective Gallup and Businessworld identified certain Industry sectors as focus areas.
the research was designed to ensure adequate representation of functions* and levels* across sectors. IT BPO Retail Consumer Durables Total Qualitative Phase FGDs (Employees) Depth Interviews (Employees) Depth Interviews (HR Heads) Semistructured interviews (Employees) Semistructured interviews (HR Heads) 1 4 5 5 5 5 1 5 1 5 5 5 3 44 2 2 2 2 2 2 2 2 2 18 Quantitative Phase 71 87 80 77 82 88 78 84 84 731 6 4 4 5 3 6 5 7 6 46 As is described above in each industry sector. 7 . Finance and Administration Levels: Entry level Junior Management. Phrama Telecom FMCG Fin. Middle Management. Mfg. The employee population being large and non-homogenous. HR managers and Employees were met. 87% were amongst the top 20% (as per the perception of the employees covered). Top Management Majority of the organizations selected for survey featured amongst the top 10% paymasters in their respective industries. NOTE: Functions and levels were defined as Functions: Front line = Sales and Service Line = Production/Manufacturing Support = HR. across organizations.Sampling Plan: The sample distribution was as follows.
23% Post-Graduates. Idea Cellular. Eli Lily Telecom Avaya Global Connect. Kotak Mahindra ICICI. ABN AMRO. NOTE: 1] All Employees who answered the survey had spent more than 3 months in their respective organizations. M&M Pharma Ranbaxy Wockhardt. TCS. 2] 35% of the employees were Graduates. Convergys India Services Private Limited Employees contacted for the study belonged to leading organizations in the above. Eicher Motors. Standard Chartered IT Flextronics. Hero Honda. Financial Bajaj Allianz. HCL BPO.Reddy's laboratories limited.specified sectors. Biocon. 8 . Dr. HCL.HR Managers included in the study belonged to leading organizations like Manufacturing Tata Steel Tata Motors Maruti Udyog Limited. Over three fourth of the respondents had previous work experience. STM BPO/ITES Genpact. 21% were MBAs and 10% had professional qualifications like Engineering/Medicine. Wipro Infosys. Wipro Technologies. Birla Sunlife. Pfizer. Aviva. majority of them in the IT and Financial sector. Satyam. IBM Daksh Accenture. Hutchinson Telecom East Limited. VSNL Bharti. Sutherland.
the war for talent is not confined to any particular sector of industry as professionals. Employers need to concentrate on the total package which includes growth.” What is the future of the Managerial Talent Pool in India? In the coming 5 years. openness and transparency wherein the employee feels secured in the belief that the Company lives up to the promises made. Perhaps a true vindication of this is the fact that today we have an attrition rate of 5% when the industry norm is around 10%.” This is an especially formidable challenge for the Manufacturing sector. “switching within the same sector is now seen as “retro” and is generally confined to domain specialists and employees at the entry/junior levels. rather it is important to create an ambiance of trust. It is wrong to consider that employees today are not loyal . the organization culture and development of individuals. What sets us apart is the challenging opportunities we provide (as distinct from normal job scenarios) wherein each employee is encouraged to nurture his professional aspirations. AM Misra of Tata Steel however has a slightly different take on the issue “this is one of the biggest myths going around. retention has emerged to be a major challenge for HR professionals and line managers across the sectors of industry. While this sector is competitive at the junior/entry level in terms of compensation offered to freshers. especially those with 3 years of more of experience are moving across sectors. Mr. compensation if you ask me is not a major issue. At Tata Steel. it simply can’t keep up with the new economy sectors like Telecom and IT when it comes to matching salaries at the higher echelons of the management hierarchy. As a result of this. As a matter of fact. We have been attracting and more importantly retaining the best talents at all levels.Section 3 Emerging Challenges for HR Leaders Attracting and retaining top-drawer talent The demand-supply equation for talented professionals has heavily skewed in favor of the former. This is the sector where compensation is proving to be a major roadblock in retaining talent. Unlike in yesteryear. while we believe in paying for retaining critical talent. which of the following statements do you think would most apply to India? 100% 80% 60% 40% 63% 17% 20% 0% Most attractive destination for the best managerial talent worldwide Home to the best managerial talent worldwide Struggle to meet its Need to look to other countries to meet it’s demand for managerial talent demand for managerial talent 4% 13% 9 .
” Says Sanjay Bhargav of Marico. Is has led to tremendous spare capacity” “The answer” according to Dr. According to Mr. “ Ensuring work-life balance Work-life balance has been the first casualty of the pressure packed working environment of the corporate world today. Mehta. Misra. in it’s quest for readymade talent. “ Global integration is no more a growth dimension. I will say that the question is irrelevant. Many organizations have been trying to enforce this through a series of measures. Cross-cultural integration With Indian companies rapidly expanding footprint across the globe. We are already looking down the barrel. it is the job hopping that we are seeing among youngsters of today.they have a booming economy but no leaders to drive it. A sizeable section (13%) however are worried about the Brain Drain phenomenon. Employees are expected to demonstrate how they tie in corporate values while achieving objectives. a belief in values. Jha “ make that 10 years. A lack of work-life balance has been found to drastically affect productivity levels and quality of working conditions for most employees. we could be looking at a leadership crisis another 10 to 15 years from now. Its happened in Thailand. Whether in Singapore or South Africa. they have had tremendous width in terms of exposure but not enough depth. We aspire to be a global player in every sense of the word and one our key strategic thrust is towards developing local leadership in all locations that we operate inIndia. Let me tell you. We at the Tata Group have always believed in it. While operations is one aspect of it.HR Heads seem to be extremely bullish on India as far as the future outlook of the Talent pool is concerned. Sangram Tambe of Tata Motors “lies in homegrowing talent. This is a prerequisite to promotion in some of the forward-looking companies. it does not matter if India has the talent or China has the talent as long as India is an attractive talent destination. we need to make sure that we don’t lose what is unique to Tata Steel. we are looking at an integration strategy. Mexico or Europe” Building a leadership pipeline “If you ask me the single most worrying trend that I see today. “A global outlook and cross-cultural adaptability are among the key competencies that we are looking for in our leaders of tomorrow. we need to make sure we align all our employees to the values and operating principles of the Tata group” Mr. where the opportunities are. operating efficiency and care and concern for environment and society. Going forward. where the efficiencies are. 10 . If this trend continues. China. We need to go where the markets are. By the time these people have 6 years of experience. the strategy is 90% people centric” says Mr. Misra is of the opinion that “ in our quest for international acquisitions. cross cultural integration will be among the biggest challenges that HR Leaders face in the times to come. Some organizations like Avaya Global Connect actually have work-life balance as a stated corporate value. ethical conduct. corporate India is borrowing against it’s future” Sanjay Singh of Whirlpool however has a different take “ at the end of the day. on the other hand contends “if you ask me the nationality of Genpact.employee centricity. it is a survival imperative.” Mr. We are likely to seen a huge influx of expatriates in the coming few years.
To facilitate a culture of learning and innovation is an emerging challenge for the HR leaders of today. an employee. Employees across the organization. which will be ‘hot’ in the future.g. By linking compensation to acquiring the new skill existing employees are motivated to constantly upgrade. For HR. 11 . acquiring and internalizing them is an essential part of the race to stay ahead. especially in view of increased competition in the marketplace. upon meeting certain criteria of performance. Customer Satisfaction is built in as a metric in the performance scorecard of all associates in most organizations and carries a heavy weightage. regardless of grade gets to pick a location (from a basket of national and international locales) for an all-expenses-paid family holiday. The nomination is highly coveted and the nominee is better compensated. Promoting innovation Organizations need to innovate to stay ahead in the race. In some organizations once future talent is identified and brought into the organization “Talent Transfer” is encouraged. employees are the customers and ensuring quality and transparency is paramount in all business processes that the organization undertakes HR as a function is moving away from being a support function to the fulcrum of business strategy. Some organizations have a separate Business Unit e. This has emerged to be among the more popular perks in the New Economy organizations Building work-force capability To adequately equip and enable the workforce to improve performance is also an emerging challenge faced by HR Leaders. In the process work-force capability in enhanced. Companies like Ranbaxy are investing heavily to upgrade skills of their workforce and even offer incentives and career breaks to acquire higher qualification. Enforcing corporate vales and operating principles In the age of cut-throat competition and considering that numbers are taken as the sole measure of performance. Customer Satisfaction is therefore as much a responsibility of HR as that of any other function. Ensuring quality and customer satisfaction It is a buyers market and customers are becoming increasingly demanding.Organizations recognize the need for employees to unwind and spend time with their families. Companies like Eli Lily have a scheme where. getting employees to live corporate values and operating principles is a challenge before HR Leaders. For New economy industries identifying skills. depending on their performance and aptitude are nominated to work in the centre. Centre for innovation & New initiatives.
organizational climate.” 12 . career growth prospects. We believe in pay for performance and have a very aggressive incentive plans. According to Piyush Mehta of Genpact. HR leaders feel that how much you pay is not as important as how you pay and what you pay for.Section 4 Compensation and Benefit in perspective Compensation put into perspective is nothing more than a reinforcement of management techniques and a reflection of the company’s values. Our Compensation practices reinforce our values. Compensation at the end of the day is seen as a hygiene factor. Factors like job content. have to strike a fine balance between bottom-line orientation and genuine concern for the employee. BN Jha of Avaya Global Connect “many of our competitors have innovation as a stated value but look at their PMS. The companies today in order to compete. According to Mr.“ Industry leaders like Genpact carry the onus of setting trends for an economy sector. empowerment and autonomy. we have taken a conscious decision to be somewhere near the median mark. Where base salaries are concerned. build workforce capability and drive performance. if not greater determinants of an employee’s satisfaction and morale.if you pay peanuts. trust me India will lose it’s price advantage sooner than you think. the entire variable pay is based on meeting financial targets. you get monkeys but paying top dollar will not necessarily get you top guns unless you have compensation practices seamlessly aligned to managerial intent. If we get into the top-dollar game. on the other hand are competitive because we pay for what we value. learning opportunities and the employee’s realization of her self-perceived potential are as important. A good compensation package will fail to be effective unless backed by suitable managerial input.” This quote is fairly representative of how HR leaders feel about Compensation and Benefits as a tool to attract and retain top-drawer talent. We. To keep an employee happy and productive and to constantly provide avenues for her to hone and make optimum use of her skills and competencies is a challenge that compensation managers will constantly have to deal with.
It is evident from the above that HR Managers have their finger on the pulse when it comes to the key factors behind attracting talent i.” However. as expressed by an HR head. Compensation is also relatively more important to employees in functions like customer relationship and HR. attracting the right talent has emerged as one of the big challenges for HR managers of today How are Employers addressing this challenge? What do HR Managers perceive as being important to employees? What factors do they emphasize on while ‘selling’ positions to potential employees? Critical Factors in attracting talent to an organization 70% 60% 50% 40% 30% 20% 10% 0% Career Growth and Learning Opportunities Compensation 54% 55% HR Managers Employees 24% 11%14% 16% 4% Brand Name of the Training Programs Organization 3% Talent pool in the organization 7% 1% Prospects of Overseas assignments 4% 2% 3% Company policies and procedures Organizational culture The chart maps employers and employees perceptions of key attractants to an organization. Surprisingly.is it anybody’s case that say.e. job content does not seem to figure as a factor for employees when choosing a career. Factors like a professional working environment and a caring employer matter more than a fat paycheque when a prospective employee looks at options. The message is clearly and well understood all across-money matters but not at the cost of growth.Top Management.“Job content has today become a hygiene factor.COMPENENSATION & BENEFITS AS A TOOL TO ATTRACT TALENT Talented people are the key resources for any organization in any sector. The good news is HR managers of India’s leading companies are aware of this sentiment. a training role in company X is different from a training role in company Y? Employees today carve out their own roles in an organization. the plethora of career alternatives and employment opportunities. Compensation and Benefits comes in a distant but significant third. One line of thought regarding this. Given the upswing in the economy. Look at the Telecom industry. 13 . Everyone in an organization. HR is only too aware of the need for enrichment. Career Growth &Learning opportunities followed by brand equity of the organization. Line. in the pharmaceutical and financial sector and across brand management and production. employees rank compensation and benefits in second position and brand equity of the organization as a distant third.
Like last year. 14 . Most organizations(46%) believe in paying competitively and stressing on high rewards for good performance. but if one wants to attract the best talent. In Finance. 87% of HR Managers said that they would prefer an MBA for recruitment at the entry level for the HR Function. the Organization needs to package itself as an attractive destination where employees have opportunities to acquire new skills. Compared to 75% last year. Only 11% of the HR Heads interviewed admitted to being in the Top Dollar Game. MBAs don’t seem to enjoy much advantage in recruitment to the Finance function. only 67% of the HR Heads covered this year say that a premium is offered to MBAs over others. HR Heads seem to have taken cognizance.Policymakers would be interested to know that employees in the pharmaceutical sector especially entry level employees) attribute significantly lower importance to Brand Equity (10%) while employees in Telecom (especially entry and junior management level employees) attribute significantly higher importance to Brand equity of the organization (18%). The writing in on the wall for HR managers to see. specialist Post-Graduates like CAs are preferred. How much does an MBA matter? An MBA is an overwhelming favorite when it comes to preferred qualification for recruitment at entry level positions.Compensation may be important. The MBA however seems to have lost it’s glitter when compared to last year. Another large section (37%) say they believe in paying competitively and stress on career growth opportunities. hone existing ones and work in an environment that’s professional and conducive. The corresponding figures for Marketing and Sales were 74% and 51% respectively. this year too.
20%) while for Line functions compensation is ranked third (Job content23%. 20% of the organizations studied are considering hiring expatriates. compensation. Working environment -20% . At the entry level. The expatriate influx in India is a trickle but is likely to go up significantly in the coming few years. This trend is maintained in Frontline functions.The Expatriate Story Boundary-less effectiveness is the new credo of organizations operating in India. reversed in Support functions (Job content26%. it is again the FMCG Sector which is most open to hiring expatriates with 80% of the companies studied considering the option. as many as 40% of the leading companies in FMCG sector and a whopping 50% in the IT sector are considering the option. The corresponding percentages for the Middle and Senior levels is 28% and 46% respectively. compensation. it is the Telecom sector which is most open to the idea of hiring expats (100% of companies studied are considering the option) followed by Manufacturing and IT sectors where 67% of the participating companies are game to having foreigners occupy Senior Management positions.15%) 15 . COMPENENSATION & BENEFITS AS A TOOL TO DRIVE PERFORMANCE & BUILD WORKFORCE CAPABILITY The graph represents critical factors that drive performance from an employee perspective Critical factors that drive performance across sectors Total Telecom Manufacturing Financial Sector IT Consumer Durables BPO/ITES FMCG Pharmaceutical Retail Compensation Training Performance Management System Talent Fit Job Content W ork-life balance W orking environment Recognition Pride in work As is evident Compensation and Job content are critical across all industry sectors. with compensation being highest at 22% and Job Content coming a close second at 21% on a total basis. At the Senior level. In the Middle Management.
what HR managers see as key (Talent Fit and Performance Management System) feature only in 4th and 5th positions in an employees mind. Senior Management rate Job content as primary and Compensation much less important. but still at second place. Trends indicate that the importance of job content increases at higher levels of the management hierarchy.is the importance of compensation being underrated? Compensation was the most important determinant of job satisfaction for 72% of employees (“agree” or “strongly agree”). But considering that 76% of employees feel (either “agree” or “strongly agree”)that a higher pay package would motivate them to work harder towards organizational goals.The BPO Sector seems to be doing something right in aligning the PMS to developmental needs of employees as employees feel that the PMS is almost as vital as Compensation in building workforce capability. one wonders.do HR managers understand this? Is their perception of what drives performance in sync with what employees say? Employees 30% 25% 20% 15% 10% 5% 0% Compensation Training Performance Management System Talent Fit Job Content Work-life balance Working environment Recognition Pride in work HR Managers 28% 23% 16% 7% 7% 9% 11% 3% 4% 22% 15% 14% 10% 4% 9% 7% 5% 7% As is evident there is dissonance. So Compensation and Job content are key. 16 . To build workforce capability managers say they are currently focusing on talent fit and job content. The message is clear.compensation needs to feature more prominently in strategies aimed at driving performance and building workforce capability.
Marketing and Sales functions see the highest attrition in all sectors. 17 . Expectedly again.ROLE OF COMPENENSATION & BENEFITS IN ARRESTING ATTRITION It is not enough to attract the right talent. In the Financial Sector too. How bad is the attrition problem? Manageable for the most part. IT BPO / ITES Pharma Telecom Financial Sector Consumer Durables FMCG Retail Attrition rates (2006) Attrition rates (2005) 21 17 13 12 15 11 43 40 18 16 18 22 27 18 16 NA 19 NA 25 NA As can be seen. The following table gives the figures in percentage. Retaining Technical people is a challenge in the IT Sector. So why do employees leave? The chart below reflects employee speak Critical reason for attrition ( Employee perspective) 50% 45% % Respondents 48% Employees(Base: 730) 40% 35% 30% 25% 20% 15% 10% 5% 0% Compensation Learning Opportunities Job Content Immediate supervisor Lack of recognition 22% 8% 2% 8% 3% 2% 1% 2% As is evident career growth opportunities are the primary reason followed by the lure of better compensation. the attrition menace in the BPO sector has become more menacing since last year. Expectedly. it is at a high 43% in the BPO sector. All Industry Mfg. it is equally important to retain it. In order to retain talent HR Managers need to understand reasons for attrition and factors contributing to the same. the attrition rates have gone up significantly to hit the danger mark.
senior management (12% named it as a factor) attributes more importance to job content and work-life balance as compared to junior management (6% said that it matters). So do HR Managers and employees see eye to eye on this one? Do HR managers really understand why employees leave? Reasons for attrition (Entry Level) 70% 60% 50% 40% 30% 20% 69% HR Managers Perspective (Base:45) 51% Employees Perspective (Base: 142) 53% 25% 20% 11% 13% 6% Compensation Career Growth Learning Opportunities 10% 0% 5% 4% Talent Fit Job Content 7% 4% 2% Immediate supervisor 1% Family responsibilities Location of workplace 2% Company policies & procedures Work-life balance Reasons for attrition (Junior Management) 80% 70% 60% 50% 40% 30% 20% 10% 0% 72% 61% HR Managers Perspective (Base:46) Employees Perspective (Base: 292) 46% 24% 17% 9% 8% 7% 2% Compensation Career Growth Learning Opportunities Talent Fit Job Content 8% 2% Work-life balance 11% 3% Immediate supervisor 1% Family responsibilities 2% Lack of recognition 1% Location of workplace 2% Company policies & procedures 18 . Other sectors largely reflect similar trends.Is this true across sectors? Compensation seems to be most important in the BPO sector. When comparing across levels.
compensation is a distant second.to employees it is clearly more important than compensation.) said they would jump ship even for a hike of less than 20%. 5% -middle mgmt and 0% -Senior mgmt. Should this be believed? Considering that a significantly higher number of employees (10% entry level employees as opposed to 3% -Junior mgmt. This is probably true given the fact that majority of the employees at this level said they would job hop only for salary differentials of 30-40% Reasons for attrition (Middle Mgmt Level) 60% 50% 40% 30% 49% 58% 51% HR Managers Perspective (Base:45) Employees Perspective (Base: 214) 22% 20% 10% 0% 17% 9% 7% 16% 7% 9% 2% 3% Job Content Work-life balance 16% 13% 2% 3% Lack of recognition Location of workplace 4% Company policies & procedures Compensation Career Growth Learning Opportunities Talent Fit Immediate supervisor Family responsibilities Reasons for attrition (Senior Mgmt Level) 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Compensation Career Growth Learning Opportunities Talent Fit Job Content Work-life balance Lack of recognition HR Managers Perspective (Base:45) 40% 37% Employees Perspective (Base: 82) 31% 22% 20% 12% 18% 16% 6% 7% 9% 10% 11% 7% 4% 7% Location of workplace Company policies & procedures 19 . At a Junior management level also.HR managers seem to think that entry level employees are easily lured by money. HR managers underestimate the importance of growth and learning opportunities.but employees at this level claim to differ – they say career growth and learning opportunities are the key enticers. maybe employee speak at this level needs to be taken with a pinch of salt.
responses vary across levels. However.At the middle management level. Given this. Thus contrary to popular opinion.their understanding follows the same trend as employee perception although the importance attributed to parameters is different. they need to ensure that their high potential employees don’t feel stagnated. it is Career Growth and not Compensation. which prompts employees to jump ship. so it is important for HR managers to understand how much of a salary hike would make an employee jump ship? Although close to 40% of the employees say 30-40% hike in pay. this verified from the fact that almost none of them would consider a job switch for a pay hike of less than 20%. Yet compensation is important as is evident from above. If organizations want to retain talent. They are clearly underestimating the importance of Compensation for executives at this level. spot payments and renegotiated salaries (even deferred payments) can be rather ineffective. Senior managers clearly state that compensation is a distant second. HR managers seem to have better understood the pulse of the employees. HR Managers give a higher billing to Job Content over Compensation for Senior Management. sectors and functions 20 . Majority would only move if the salary differential was above 40%.
Mean% 21 50% 45% 47% HR Managers(Base:45)-Mean% 29 Employees(Base:292)-Mean % 34 42% 36% Employees(Base:142) .Mean % 32 40% 30% 25% 33% 29% 29% 32% 31% 35% 30% 25% 20% 11% 13% 7% 15% 10% 5% 11% 4% 11% 30-40% Above 40% 0% Upto 20% 20-30% 30-40% Above 40% % Increase in Salary that will make people shift their jobs % Increase in Salary that will make people shift their jobs Middle Management Senior Managemnet 50% 45% 40% 35% HR Managers(Base:44)-Mean% 32 Employees(Base:215)-Mean % 36 50% 41% 40% HR Managers(Base:44)-Mean% 36 Employees(Base:82)-Mean % 36 44% 41% 39% 45% 40% 30% 30% 23% 25% 20% 15% 10% 5% 0% 7% 4% 30% 35% 30% 20% 26% 26% 25% 20% 15% 10% 5% 0% 7% 4% 9% Upto 20% 20-30% 30-40% Above 40% Upto 20% 20-30% 30-40% Above 40% % Increase in Salary that will make people shift their jobs % Increase in Salary that will make people shift their jobs HR Managers appear to have underestimated the salary differential which will cause a person to change his/her job across levels.The below mentioned charts give an idea about the same Entry Level Junior Management 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Upto 20% 20-30% HR Managers(Base:45) . 21 .
If one were to compare sectors to judge the ‘priciest’. Interestingly people working for companies which rank amongst the top 10% paymasters seem to be the most flighty . Where do employees leave for? IT was the hottest destination for most respondents (30% want to move there). though would jump largely for a 30-40% pay hike. followed by the financial sector (21%) and telecom (16%). 22 . Across Functions production/manufacturing seems least vulnerable to attrition. Employees working in Customer Relationship.significantly higher number of employees here said they would jump only for a salary hike of more than 40%. Brand Management and HR clarify that they would not consider a switch if salary difference was less than 20%. Actuarial less so. while in the IT sector majority of the employees say they will consider a switch for a salary hike on 3040%. Quality. Across functions.The ‘pricier among the priciest’ were junior management and frontline employees in the IT sector. legal.a significantly higher % said they would jump even for a raise of less than 20% as compared to those who work for companies which are in the bottom 50% paymasters. As expected attrition in Marketing& Sales and HR is comparatively higher.Across Sectors significantly higher number of employees in BPO/ITES (especially frontline employees) said they would consider a job switch even for a less than 20% hike in pay. BPO/ITES at 12% ranks lower than manufacturing (14%). it would have to be IT. Finance. Training.
556 2.from double PhDs to matriculates.700 29.333 1. It is the market leader at the Entry.958 87.333 NA 62.452 NA 33. Where else do you get to handle complexity of this magnitude?” 23 .972 32.758 BPO / ITES 12.556 1.111 86.300 Retail 10.143 NA 60.333 2.500 IT 28. this is where every engineer should begin his career.51.99. 912 33. it is is the Financial Sector which pays Top Dollar.671 42. not-as popular perception will tell you. At the Senior levels. BN Jha of Avaya Global Connect.35.959 1.771 57.20.722 83.50.500 45.840 18.000 28. Level Entry Level ‘06 Entry Level ‘05 Junior Mgmt ‘06 Junior Mgmt ‘05 Middle Mgmt ‘06 Middle Mgmt ‘05 Senior Mgmt ‘06 All Industry 16. As Mr. Something we here are trying to emulate. puts it.900 NA 1.167 NA NA NA IT clearly comes across as the top paymaster overall. Besides.000 Telecom 18.347 11.500 1.“what manufacturing offers besides a career is a lifestyle.000 1.667 41. Even on Campus.200 20. Junior and Middle levels of the Management.200 81.571 NA 16.464 1.238 Senior Mgmt ‘05 1.500 28. in-fact the Manufacturing biggies pay better. These are monthly salaries in Rupees (gross figures).17.380 1.333 60. however.345 1.57.861 27.778 Financial Sector 18.575 NA 31.249 70.238 25. For a fresher.47.63.” This however does not explain why this sector has been successfully able to lay hands on some high profile talent at the very top level.296 48.64. not hundreds of people and such a heterogeneous profile. who has earlier worked with the Tata Group. 672 67. to IT. look at the challenge.000 22.214.171.1240 84. 17.44.583 49.167 FMCG 14.500 16.39.333 NA 72.333 NA 33. The good ones.500 NA 1.611 1.536 Pharma 12.15. however don’t stay-they want to go in for higher studies.976 Mfg. According to a fresh IIT Graduate working in a leading Manufacturing Organization-“Manufacturing is not glamorous but if you really want to learn.00.333 22.167 4.500 31.755 17.15.Section 5 COMPENSATION STRUCTURES TODAY The following table indicates the payscales across sectors of Industry.317 33.000 Consumer Durables 17.555 43.981 65.14.you are dealing with thousands.000 1.500 17.006 32. the really bright ones go for the bigger manufacturing firms. Manufacturing is competitive only at the Entry level.667 2.
“ We visit A-tier B schools but that’s not where we hire from in bulk.What happened to BPO? “Well.The new BPO The retail sector seems to have a lot of parallels with the BPO sector where people issues are concerned. The other Sunrise sector.” avers an HR executive.” 24 . we are looking at an upswing sooner than you think. blinding growth rates. The figures tell the rest of the story. Meaningful jobs. And arguably for the same reasons. low entry barriers and low salaries. what about BPO? We create jobs.conservative at the Entry and level and competitive at all other levels. BPO is where the jobs are. Once they have proved their merit.” Says a BPO HR manager rhetorically. It’s a new sector where all the learning will be from scratch. But trust me. The challenges for retail in India are going to be of a different nature if you compare it with the rest of the world. there are no hot-skills which will really jack up salaries. the pay-figures do not seem encouraging at all.Pharmaceutical The trend is roughly along the same lines as the Financial sector. We never claimed we create millionaires. These are exceptional people with the right attitude-they believe in working hard and are highly result oriented. we need feet-on-street people. At the entry level.high attrition. Enough said. “There is some consolidation happening in these sectors which has led to jobs being cut. We may be looking at a younger lot of people for the Senior Management. “We need good people but if you look closely.people who don’t come with baggage of experience or set paradigms” Consumer Durables and FMCG. The story of the Financial Sector The Financial Sector has seen the greatest spurt in Salary levels since 2005. Are we looking at an upward curve in the coming few years? “Unlikely” says the HR Head of a Retail Major. with salaries heading northward across levels. there are rewards galore. The odd Rajeev Karawal aside. BPO is not where the money is. Retail. “The market is glutted all right but you can never count these sectors out.Yesterday’s sectors? An emphatic no. huge headcount. The sector is just coming on its own.” Says Pankaj Bhargav of Marico. Namely.
We don’t want a situation where we cannot justify our wage bill and have to retrench. As an HR Leader put it. HR and Quality are the functional disciplines likely to command a premium. If we bring in new people at higher salaries. 2007 will see salaries going up but it won’t exactly be a bonanza. This could snowball into something we had rather avoid” There is always curiosity about who is earning how much. In the next 5 years Marketing.“We are being cautious. The following table helps put all this in perspective (data only indicative) Assuming a base salary of Rs.100 for HR at leach level. we will have to ensure parity for existing employees. salaries pan out as follows Production/ Manufacturing 85 91 101 HR Junior Management Middle Management Senior Management 100 100 100 Marketing 104 109 118 Sales 102 110 112 Technical 95 100 98 Training 91 91 95 Finance 94 97 105 As can be seen. does the differential hold true across levels etc. No surprises here. Jobs will created but those looking for quantum jumps in their salary package are likely to be disappointed. 25 .How much will Salaries rise? Salaries are expected to rise as follows at various levels of Management in the next 12 months Level Entry Level Junior Mgmt All Industry 16 17 Mfg. 13 17 IT 20 17 BPO / ITES 18 15 Pharma 15 15 Telecom 13 13 Financial Sector 15 15 Consumer Durables 12 15 FMCG 13 15 Retail 21 24 Middle Mgmt 18 17 18 15 20 20 12 18 15 25 Senior Mgmt 17 15 15 12 20 18 12 18 17 24 Retail clearly emerges to be the leader here with 20% salary jumps across levels. Marketing and Sales are the highest paid functions. HR today does not fetch much premium as a functional discipline. The scenario is however likely to undergo a sea change. We will increase headcount but there’s no point going overboard to get people in. which function/specialization pays more.
Competency mapping. post-graduates are likely to receive higher raises as the table below indicates. include: Sales promotion management. he can more than double his starting salary. Supply chain. specific skills. does sticking to an organization make sense? Yes.Within HR specific skills. Compensation and Competency mapping at Junior management level . Supply chain at Middle management level New Product development. which will command a premium. which will command a premium. Good Performer Graduate Post Graduate Engineer 97 120 117 Average Performer 57 72 74 26 . Though some organizations claim that qualifications are only looked at the time of recruitments and subsequently. Market Research at Junior management level New Product development. Marketing communication. Performance management. Recruitment.Performance Management. In this age of job-hopping. Does qualification matter? In one word-Yes. Market Research. Organizational development.Training.Organizational development. Market Research at Senior management level Although HR may not be coveted at senior levels. if figures are to be believed. Competency Mapping at Senior management level Within Marketing. A post-graduate who is a good performer can expect an increase of 117% over 5 years if he sticks to his first job. Even average performers who are simple graduates can expect a 65% increase in salary. Compensation and Training at Middle management level . include: . In other words. Marketing and Technical will certainly command a premium. it is performance. which matters.
Figures confirm what anecdotal evidence seems to suggest. “I see my batch-mate from IIT who works with a Telecom sector driving an Esteem while I still drive an Alto. The message for middle level executives looking at a jump. This.” Says an employee with an automobile major. it continues to be a favoured destination for Middle level executives looking for a change. Upon promotion from Middle to Senior level. There are simply too many levels” 27 .How much does salary go up upon promotion? The following table gives the percentage increase upon promotion in various sectors of the Industry. However. the BPO sector offers maximum jump upon promotion. it is Retail which offers the biggest jump.that employees in the Manufacturing sector have a long wait before they see a significant difference in their financial lot. Progress here is very slow but it can’t be helped.Retail is where to head if it is money one is looking for. 21 29 IT 28 28 BPO / ITES 50 44 Pharma 13 38 Telecom 25 31 Financial Sector 29 38 Consumer Durables 25 25 FMCG 28 33 Retail 41 54 As can be seen. Level Junior-middle management Middle-senior management All Industry 29 35 Mfg. Raises are conservative in the Manufacturing Sector. when I started out on a higher package when we passed out. “ There is a deep sense of stagnation among employees in this sector.
majority of the respondents agreed that their salaries were competitive when compared to colleagues at the same level in different companies. three fourth of the respondents felt they were fairly compensated for their efforts.Section 6 PERCEPTION OF CURRENT COMPENSATION & BENEFIT POLICIES Is compensation commensurate with efforts involved? Probably given the bias in the sampling where majority of the respondents worked for organizations which featured amongst the top 20% paymasters in their industry sector. Across sectors. I feel that I am fairly compensated for my efforts by my company 100% 85% 78% 80% 76% 68% 76% 69% 74% 74% 76% 60% 40% 20% 0% Manufacturing IT BPO / ITES Pharmaceutical Telecom Financial Sector Consumer Durables FMCG Retail Is compensation competitive? Again being from the top 20% paymasters. this opinion was more pronounced in Manufacturing and Telecom and more pronounced in junior management than other levels 28 . Employees asserted that a satisfactory system to reward good performance existed in their organization.
spouse and children.given a choice between a higher aggregate pay package which translates into a lower take-home post taxes to a lower aggregate package which is more tax friendly. The pay package offers me enough flexibility to do what I want with my money 100% 80% 74% 65% 72% 78% 70% 64% 51% 65% 67% 60% 40% 20% 0% Manufacturing IT BPO / ITES Pharmaceutical Telecom Financial Sector Consumer Durables FMCG Retail When referring to flexibility in compensation package employees were also perhaps referring to salary structure.My company is competitive in terms of the salary offered to employees at my level 100% 77% 80% 80% 64% 64% 65% 64% 68% 74% 56% 60% 40% 20% 0% Manufacturing IT BPO / ITES Pharmaceutical Telecom Financial Sector Consumer Durables FMCG Retail Is the compensation package flexible? There is scope for innovations around structuring of the pay package as less than a fifth of the employees strongly feel that their pay package offers them enough flexibility to do what they want with their money. most employees preferred the latter. As pointers to innovate around employee where asked about their specific grouses with regards to their compensation package. 29 . it did not adequately address medical needs of dependent parents. This was especially true in the BPO/ITES and Manufacturing sector.the key grievance seemed to be that although the pay package took care of medical needs of self. Comparatively higher number of employees in manufacturing and telecom strongly assert that their pay package offers adequate flexibility.
The scenario is healthiest in the IT and Telecom sectors. movement towards nuclear families etc). I feel that I will be able to provide for medical emergencies like accidents/severe illness post-retirement 100% 80% 65% 60% 40% 20% 0% Manufacturing IT BPO / ITES Pharmaceutical Telecom Financial Sector Consumer Durables FMCG Retail 73% 56% 39% 50% 55% 53% 51% 51% Is the compensation structure innovative in the context of changing socioeconomic scenario? Only slightly over 50% of the employees felt that their company’s compensation policies are innovative in terms of addressing changing needs of employees in view of today’s social and economic changes (increase in the number of female employees.Does the package effectively address post retirement needs? There is concern that the current levels of savings and investment may not make it possible to maintain the same standard of living post retirement and provide for medical emergencies like accidents/severe illness post retirement. However there was good news on the gender equity front.87% of respondents asserted that there is no discrimination in how men and women are paid in their organization. Employees in Manufacturing were particularly unhappy on this count. This concern was voiced across sectors. I feel that I will be able to maintain my current standard of living post-retirement 100% 80% 60% 40% 20% 0% Manufacturing IT BPO / ITES Pharmaceutical Telecom Financial Sector Consumer Durables FMCG Retail 74% 67% 54% 58% 47% 55% 49% 58% 49% With my current levels of savings and investments. particularly the Pharma sector. 30 . With my current levels of savings and investments.
The most common benefits across industries seem to be o Performance based rewards o Health Benefits o Car Scheme o Medical Benefits for spouse and children o Cell phones and laptops o Medical Benefits for dependent parents o Employee referral scheme o Housing Support The comparatively less common ones are o Credit card o Flexible Benefit Plan o ESOPs o Foreign Trips/ Vacations o Sponsored Family outings The uncommon ones are o Crèche o Post retirement medical benefits o Paternity leave o Adoption Leave While ESOPs. Manufacturing also scores significantly lower on ‘system to determine salary hikes is fair and objective’. Is the dissonance real? Despite the conflict it is evident that while decision makers are focusing on higher order needs. Perception of benefits. financial services significantly better. Manufacturing fares the worst on this count. Housing Support and Employee referral are more universal in scope. but they do not consider retirals as employees do. Employees also approve that HR leaders are doing a reasonably good job of bringing in transparency into promotion practices (60% of employees polled are of this opinion).Opinion of promotion policies. HR managers’ opinions seem to reflect the employees’ viewpoint when it comes to Housing and Medical schemes being important. Car scheme and Credit card are offered to Middle and Senior Management in most companies.the social security needs of employees are still calling for attention. 31 . From an employee perspective Medical Benefits (87%) Housing Support (67%) and Retirals (57%) are the three most essential benefits.they feel that to employees Car scheme. other benefits including Foreign Trips.78% of employees endorsed that promotions were accompanied by a commensurate hike in pay. ESOPs and Flexible benefit plan are as or more important than retirals. Employees seem satisfied with this.
Corporate India has a long way to go to display more sensitivity towards the new trend of nuclear families where fathers need to take time off to support their wives during pregnancy. 32 .Today. employees are living longer.Corporate India needs to be better aware of the changing needs of it’s employees. Creche facilities need to be made available keeping in view the increasing incidences of mothers of children taking up work. Gender roles are getting redefined. The message is clear. Among the gripes heard from Employees. This is evident from the fact that paternity leave has still not come into vogue. postretirement medical benefits become extremely important. living alone and need Social security. However this scenario will change in the next two years as most of these benefits could come into effect across organizations. Considering that people today are living longer and in the age of nuclear families.that the HR policies are not responsive to the changing socio-economic scene of Corporate India.most companies who are not offering these benefits currently are considering offering them in the next 2 years. Both spouses need to share responsibility.
causing them to view their compensation package more positively. Qualitative research had indicated that performance based pay was increasing becoming popular with HR managers and employees.Section 7 EMERGING TRENDS IN COMPENENSATION & BENEFITS 1] Towards performance based pay The credo most leading organizations seem to follow is to pay competitively and stress on high rewards/career growth for good performance. IT BPO/ITES Pharm a Telecom Financial Sector Consum er Durables FMCG Retail 90% 70% 75% 67% 70% 83% 77% 66% 65% Industry sectors From the above graph it is evident that the trend is welcomed by employees across sectors especially in the Manufacturing industry. Why? Perhaps because employees understand the monetary benefits and perhaps because employees’ working for organizations where pay for performance exists are significantly more likely to feel that o My company is competitive in terms of salary offered to employees at my level. 33 . The quantitative phase validated this . o Promotions are accompanied by a commensurate increase in salary Thus.81% of the respondents asserted that this was indeed a noticeable trend. So do employees across sectors welcome this trend? Perception of performance based pay across sectors Employees who feel the trend is welcome 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Mfg.Pay for performance in. Close to a third of HR managers though expressed concern that ‘pay for performance’ was not going down well with employeesthese managers can now relax as a whopping 82% employees are saying that the trend in fact a welcome one.
So.” 34 . the Financial Sector takes the cake in rewarding performance. 17 IT 20 BPO / ITES 19 Pharma 14 Telecom 18 Financial Sector 21 Consumer Durables 14 FMCG 14 Retail 18 No surprises here. It is also interesting to note that 50% of weightage is assigned to non-financial parameters of performance and “leadership competencies” for incumbents in Senior Management role. As can be seen. we consistently reward good performance with monetary incentives. where the variable component is added only to swell the CTC figure. 100% of the organizations studied have a Variable Pay Plan in their salary structure. There is greater acceptance among employees regarding variable pay and the total variable payout as a percentage of the total wage bill has been increasing over the last 3 years The Retail sector has the greatest orientation towards performance in it’s pay structure. the percentage of variable pay increases across levels. All Industry 17 Mfg. All Industry Entry Level Junior Mgmt Middle Mgmt Senior Mgmt 12 14 17 20 Mfg. how much do organizations shell out to reward performance? The following table indicates the total variable payout as a percentage of the wage bill over the past 12 months for various sectors.Is Variable pay here to stay? The following table answers the query. According to an HR head of a Banking major-“ A big part of Compensation Package of most associates is at risk and unlike many other sectors. If there are any doubts left. 10 11 15 17 IT 5 14 24 26 BPO / ITES 12 13 13 19 Pharma 20 Telecom 13 14 18 25 Financial Sector 11 11 14 23 Consumer Durables 10 13 14 12 FMCG 10 13 14 16 Retail 19 22 25 27 Performance based pay is increasingly becoming popular even among the support functions. The variable component of the pay depends on both individual/team and organizational performance and increases across levels of the management hierarchy.
However unlike what employers would like to believe rewards are not entirely appreciated even by rewarded employees-“ What’s the point of sending me on a foreign trip and making me pay the tax on it?” or “ I was told I would receive Rs.000. 1. 70. Many things are rewarded. Some organizations offer ESOPs to their best performing employees irrespective of grade. Some lessons have however been learnt from the past and employers are more discriminating while offering ESOPs. The exceptional performance of stock markets is a factor behind this. After the slump in stock markets post 2001. ESOPs are again flavor of the season among HR Leaders in the new economy sectors of the industry. motivation and sometimes even for attracting and retaining employees. Performance based Rewards Rewards are used as a tool for recognition. Rewards are fast gaining popularity and the trend is towards providing one time reward/ recognition rather than compensation renegotiation. excellent project execution. customer satisfaction etc. HR leaders contend that ESOPs are here to stay. the rest was cut as tax. Other organizations restrict ESOPs to middle and higher management 35 . Rewards can be in the form of Certificates/Mementos/Cash /Paid holidays/foreign trips/expensive dinners.000 for my performance.000” 2] ESOP’s on a comeback trail 63% of the employers polled said they currently offer ESOP’s and of those who don’t a third indicated that they were considering offering ESOP’s in the next 1 or 2 years. The company should have borne the tax on this or at least clarified that the award is only Rs. All companies surveyed had a Performance Pay Plan in their salary structure. Incidence increased with increase in management level. (this is at variance with the opinion of HR Leaders of the Financial Sector as a majority say that Performance Orientation is strongly built into the Compensation Structure).timely/early project completion. employers and employees had both lost interest in ESOPs. ESOPs will have a higher lock-in period. The percentage was significantly higher in BPO/ITES and Telecom sectors where 77% and 83% respectively said that they had a Performance Based component in their pay structure. I received only Rs. and significantly lower in the financial sector where only 58% said that a part of their pay was at risk. 70. level or function. Besides.00. A significantly higher proportion of experienced professionals had a performance based component in their compensation package as compared to freshers. HR leaders however feel that ESOPs are a potent retention tool and also boost performance by giving employees a stake in the organization’s fortunes.How common is pay for performance? Majority (69%) of the employees polled also said they had a performance based component in their compensation package.
Policymakers are of the opinion that retirals are a component of the compensation package only because the law mandates it. the retirals component should be brought down to 15-16% from the current 20% of basic pay. Perhaps at higher levels of management ESOP’s look more favorable. However 75% of employees perceive retirals as mandatory savings. They are clear that a higher take home is preferable in lieu of retirals like PF. Despite this faith employee opinion is divided. Employees obviously prefer the solid reassurance of cash in their bank accounts to the lure of notional lucre. Senior management was more positive then middle management. 36 . which are effective in addressing post retirement financial. junior management was more positive than entry level employees. needs.many (54%) feel that as the market yields more benefits than retirals like pension. a growing number of employees demand post-retirement health benefits. 3] Are retirals in or out? There is a reasonable amount of contradiction concerning ‘Retirals’. However.What is the response of employees? Cautious optimism. The sentiment was reflected across sectors. This was especially true of the BPO/ITES sector.59% felt ESOPs were an attractive mode of compensation. However given a choice between ESOPs worth 20% of their annual take home or a spot payment of the same amount. more employees (54%) preferred the latter option.
ANNEXURE I feel that I am fairly compensated for my efforts by my company 100% 85% 80% 69% 78% 76% 68% 76% 74% 74% 76% %Top2Box 60% 40% 20% 0% Mfg. IT BPO/ITES Pharma Telecom Financial Sector Consumer Durables FMCG Retail Chart .1 A satisfactory system to reward good performance exists in my company 100% 80% %Top2Box 75% 77% 78% 66% 82% 74% 73% 76% 77% 60% 40% 20% 0% Mfg. IT BPO/ITES Pharma Telecom Financial Sector Consumer Durables FMCG Retail 37 .
3 The pay package offers me enough flexibility to do what I want with my money 100% 80% 60% 40% 20% 0% Mfg.Chart .2 The pay package offers me enough flexibility to do what I want with my money 100% 70% 65% 70% 80% %Top2Box 67% 60% 40% 20% 0% Entry Level Junior Management Middle Management Senior Management Chart . IT BPO/ITES Pharma Telecom Financial Sector Consumer Durables FMCG Retail 65% 74% 72% 78% 70% 64% 51% 65% 67% %Top2Box 38 .
I feel that I will be able to maintain my current standard of living post-retirement 100% 80% %Top2Box 74% 67% 54% 58% 47% 55% 49% 58% 49% 60% 40% 20% 0% Mfg.Chart .5 Three most important benefits that should be provided to employees in your organization? 100% 80% 60% 40% 20% 0% Medical Retirals Housing Support Car Scheme ESOPs Flexible Benefit Plan Loyalty Bonus Incentives Performance Based 85% 76% 51% 24% 55% 48% 50% 37% 34% 43% 34% 17% 20% 1% Employees HR 39 .4 With my current levels of savings and investments. IT BPO/ITES Pharma Telecom Financial Sector Consumer Durables FMCG Retail Chart .
6 Which of the following benefits do you currently offer to your employees? 98% 100% 87% 80% 60% 40% 20% 0% 80% 72% 64% 65% 48% 38% 24% 28% 20% 9% ESOPs Performance Based Rewards Sponsored Family outings Foreign Trips/Vacations Car Scheme Housing Support Corporate Credit Card Cell Phones & Laptops Employee Referrel Scheme Health Benefits Flexible Benefit Plan Paternity leave Adoption Leave Creche Facilities Post retirement medical benefits Medical benefits for employees spouse and children Medical benefits for employees dependent parents Loyalty Bonus 96% HR 64% 93% 80% 30% 35% Chart .Chart .7 Why do you feel Infosys has the best Compensation and Benefit Policies? 100% Employees 80% 60% 39% 40% 20% 0% Good Pay Package Good Compensation Good Company Good Benefits Others 31% 15% 5% 10% 40 .
10 41 .8 Why do you feel Wipro has the best Compensation and Benefit Policies? 100% Employees 80% 60% 40% 16% 20% 3% 0% Good Pay Package Good Compensation Good Company Good Benefits Others 48% 16% 17% Chart .Chart .9 Why do you feel Tata has the best Compensation and Benefit Policies? 100% Employees 80% 60% 40% 19% 20% 0% Insurance Policy for Good Pay Package Employees Inexpensive food Good facilities Good Compensation Others 31% 15% 11% 12% 12% Chart .