A recent Watson Wyatt salary report for India shows the tremendous growth in the country is starting to take it’s toll and read like a great HR manager’s challenge come nightmare:-
- 16.5% attrition, with some of the highest figures in junior and middle management and customer service roles (aka call centres)
- Double digit salary growth across all industries and level, except Pharmaceuticals at the low end
- 30.0% of the companies have difficulty in attracting the right talent
- 16.0% of companies have difficulty in retaining the top performers
- Biggest factors affecting attractions, career growth opportunities, advanced training and variable pay
- Biggest reasons for leaving better pay opportunities, better growth / career opportunities, personal reasons
For a country known as being a low cost outsourcing destination I see these statistics as a bit of an issue. Not to mention that the salary growth is going to have significant economic challenges for the Indian Government.
What are HR doing to combat these things?
|Percentage of companies|
|a. Giving them higher salaries||48.0|
|b. Faster growth opportunities||62.0|
|c. Better performance based bonus amounts||46.0|
|d. Additional perquisites||4.0|
|e. Advanced training opportunities||38.0|
|f. Projects abroad||24.0|
|g. Recognition awards||54.0|
|h. Reflects in the salary increase||50.0|
To me it seems if you are a HR manager looking for a challenge there is no better place to go right now than India.
Want to learn more about HR management in India check out Gautam Gosh’s blog or listen to an interview with him on The Cranky Middle Manager.