OVERALL PAY HIKE TO BE IN DOUBLE DIGITS IN 2015 :TEAMLEASE REPORT...!

SALARY VARIANCE between Temp and Perm TRUNCATED to 2%;

Overall Pay hike to be in double digits this year: teamlease report

The increasing demand for talent seems to be having a positive impact on the salaries this year, states TeamLease Jobs & Salaries Primer’ Report.  According to the report, the biggest reversal in trend this year is the salary variance between temp and perm jobs has narrowed sharply across a slew of job profiles and industries. The average salary difference now ranges only between 2.2% and 2.5% as compared to last year’s low of 4.7% and 5. In fact, not only in metros, even in cities such as Ahmedabad and Pune, the gap between the salaries rolled out to temp and people on the rolls have lessened significantly indicating the maturity of job market across the country.

From an overall perspective candidates undergoing appraisal this season are expected to witness a double digit salary growth ranging between 10.5% to 15% across industries and functions, setting in a upbeat tone for the year.

While retail and telecommunication steal the shows with a 12% - 15% increment in salaries. Health & Pharmaceuticals, Media & Entertainment, Power & Energy, FMCD and FMCG are also expected to witness a positive growth.  Further, city wise Mumbai tops the chart as the highest salary paying city in as many as seven industries.

A detailed analysis of the report also throws light on the salary trends across blue collar profiles. According to the report the median salaries for some of the blue collar profiles are around 30% and 50% higher than the minimum wages. The study also highlights that apart from the hard skills soft traits such as honesty, personal hygiene and mannerisms are increasingly gaining demand.

Job creation is also witnessing slight deviations. Jobs, especially in technological innovation, is much sought after in the industry.

KEY FINDINGS OF THE SURVEY

Ø Talent demand peaks, and salaries rise substantially as the seeds of market transformation are brought to fruition. Salaries have risen significantly for about 37% of all profiles surveyed, incrementally for 44%. Double digit salary growth – ranging from 10.5% to 15% – is more the norm than exception with about half the industries.

Ø Job creation, especially in the domain of technological innovation, takes a front and center position in talent acquisition plans. Cutting edge skills in Digital, Analytics and Big Data are rubbing shoulders with staple job roles such as IT Manager, SAP Consultants and Systems Engineers.

Ø Salary variance between temp and perm jobs narrows sharply across a slew of job profiles and across industries. The most equitable unified salaries have a sliver-thin variance of between 2.2% and 2.5% - down from last year’s low of between 4.7% and 5.5%. The narrowing of this difference is driven by the quest for right-fit skills and an attitudinal shift in the talent market.

Ø Information Technology, Retail and Telecommunication lead the charge towards spectacular salary growth, a cheer spread across half the industries. Salary growth in these industries tops off at around 12% - 15%. Health & Pharmaceuticals, Media & Entertainment, Power & Energy, FMCD and FMCG command salary growth rates between 10.5% and 12% for the top paying cities.

Ø Mumbai does not just steal a march over Bangalore and Delhi, by now the formidable triumvirate; it is also the top salary paying city across as many as 7 industries. Delhi leads across 4 industries and Bangalore in 1. In all, each of the three cities features in about 10 of the 15 cities covered by the analysis.

Ø Certain city-industry clusters are proving to wield enormous clout in consistently attracting the best salary growth rates over time. Bangalore-IT (14.7%), Mumbai-FMCG (13.6%), Bangalore-Healthcare & Pharmaceuticals (13%) and Pune-Power & Energy (12.5%) are the city-industry clusters that dominate this scene. The clusters are characterized by a mature Talent demand-supply scenario where businesses are comfortably ensconced in cities with high quality talent pools.

Ø Software roles dominate top tier jobs across industries reflecting the severe talent crunch in this domain. Technological skills are, currently, the most valued and businesses across industries are willing to pay top dollar for. Roles down the hierarchy from Java Developers, Project Managers and Infrastructure Architects are commanding salaries upwards of Rs.50, 000 – at least 50% marked up compared with the median salaries for the rest of the job profiles.

Ø Vocational skills and Blue Collar job profiles are appearing indelibly on the radar of employers. Businesses wish to closely partner with intermediaries, but still have a direct say and involvement, in the acquisition of Blue Collar workers. Demand has far outstripped supply but employers are discerning and willing to, and ensuring, more than mere sustenance payouts. Soft traits such as Honesty, Personal Hygiene and Mannerisms are as sought after by employers as hard skills and abilities such as Physical Strength, Tool operation, Documentation and Material Management

Commenting on the report, Ms. Rituparna Chakraborty, Sr. V-P & Co-founder TeamLease Services, said, “The overall improvement in the business scenario coupled with the right initiatives by the government seem to be having a positive effect on hiring as well as salaries this year. The growing optimism and the resultant movement of talent will not only compel corporates to loosen their purse strings but also will help them with access to a wider talent pool.”  

A detailed report, TeamLease Annual Salary Primer analyses a variety of attributes that govern the dynamics of the employment market – skills, salaries, increments and longevity (which is a measure of the time period for which a profile would stay in a job – the inverse of attrition). 

The unified salary report covers 15 key industry verticals namely Agriculture & Agrochemicals, Automobile & Allied Industries, Consumer Durables, Power & Energy, FMCG, Manufacturing & Allied Industries, BFSI, Telecommunication, Hospitality, Healthcare & Allied Industries, BPO & Information Technology, ITeS, Retail, Construction & Real Estate and Media& Entertainment. The functional domains analyzed are Accounts, Administration Blue Collar, Support Services, Engineering, Human Resources, IT and Sales & Marketing while the locations covered are Ahmedabad, Kolkata, Bangalore, Hyderabad, Chandigarh, Mumbai, Chennai, Pune and Delhi. Salaries benchmarked in this document are mostly those pertaining to junior to mid-level profiles. 

The primer serves as a guide for both job seekers and employers to obtain relevant information and useful insights on talent, skills, salaries, increments and longevity.

About TeamLease Services Pvt. Ltd

Established in 2002 with 4 offices, 20 clients and 40 employees, TeamLease is now India’s largest and foremost people supply chain company in the country. Currently the company has 8 regional offices, 1000+ clients and 1200 employees. 

The company started with temporary staffing and then after adding Permanent recruitment in 2004, expanded its portfolio to now become the one stop solution for staffing & HR services. In the years 2008, 2009 and 2011, the focus was majorly on Education & Employability and applied for NETAP (National Employability through Apprenticeship Program), acquired IIJT and signed the MoU for TeamLease Skills University (TLSU) in Gujarat respectively. 

This set in motion the larger mission of the company of ‘Putting India to Work’ by focusing on its vision of the 3 Es – Employment, Employability and Education. NETAP was rolled out this year (2014) and TLSU is operational in Vadodara. The company currently has 95,000 associates across the country and has till date hired 1.5 million kids with an aim to hire millions more.

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Renu Praveen:  +91 97422 79654 | Sonakshi Murze: +91 97421 24240

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