confidential 1 india : compensation growth outlook 2012
TRANSCRIPT
CONFIDENTIAL 1
India : Compensation Growth Outlook 2012
CONFIDENTIAL 2
Table of Contents
1 About Right Step
2 About India Compensation Growth Outlook 2012
3 Summary Results : India Compensation Growth Outlook 2012
4
Detailed Analysis : Industry Wise Results 5
Detailed Analysis : India Compensation Growth Outlook 2012
CONFIDENTIAL 3
About Right Step
Right Step Consulting (P) Limited offers solutions for Human Capital Management. We help our clients build their businesses by help finding & managing the right talent for them. Combining unparalleled experience, comprehensive capabilities across many industries and business functions we collaborate with clients, work as a trusted advisor to help them make distinctive, lasting, and substantial improvements to their performance. We have in-depth functional and industry expertise. Our scale, scope, and knowledge allow us to address a wide spectrum of industries and challenges.
At heart, we are a group of people who are passionate about taking on immense challenges that matter to our Clients.
Management Team
Right Step Consulting (P) Limited is founded and run by professionals from premier B-Schools, including the IIM. The founding team has extensive recruitment experience at leadership level in global Fortune 500 staffing major, where they have serviced clients across sectors.
The team has hands on functional business experience across the various sectors we work in.
CONFIDENTIAL 4
About : India Compensation Growth Outlook 2012 First of its kind exhaustive survey by an Indian firm for
Indian Industry Representation from all segments of Indian Economy
• Listed Companies (BSE / NSE)
• Unlisted / Privately held entities
– Large Enterprises
– Emerging Enterprises
– Subsidiaries of Foreign MNC
– Smaller Firms (< 50 employees)
Focused on compensation• Outlook for change in compensation hikes in 2012 as compared to 2011
• Structure of Compensation (Fixed & Variable)
• Expected changes in compensation across various management levels
• Expected changes in compensation for different performance levels
CONFIDENTIAL 5
About : India Compensation Growth Outlook 2012 Carefully selected participation by invitation 2326 participants Captures latest outlook from corporate sector
• Responses collected in second fortnight of March after union budget’s presentation
• Timing enabled respondents to have a better foresight into the next year’s annual operating plan for their company and therefore the approach on compensation
Detailed Coverage & Analysis • Segment wise - MNC & Indian
• Segment Wise - Larger Conglomerates to Smaller Emerging Enterprises
• Industry wise
• Performance Level wise (Best Performer to Weakest Performer)
• Managerial Level wise (Top management to Junior levels)
• Variable pay components at various managerial levels
CONFIDENTIAL 6
About : India Compensation Growth Outlook 2012Sectors Covered Animation/Advt/Media Entertainment ITES / BPO / KPO
Automotive IT-Hardware & Office Automation
BFSI IT-Software / Software Services
Bldg Material - Cement/Sanitaryware/Glass Logistics
Chem/Petrochem/Plastics/Fertilizers Medical/Healthcare/Hospitals
Consulting Services Mining
Diversified Conglomerate Oil & Gas
Electrical Products Others
Facility/Bldg Management/HVAC Pharmaceuticals
FMCG & FMCD Power & Energy
Heavy Engineering /Machinery Retail
Hotels/Travel/Hospitality Steel & Basic Metals
Industrial Products Telecommunication
Infrastructure /Construction/ Real Estate Textiles / Garments / Apparel
Every sector had minimum of 30 participants. Sectors like Gems & Jewellary, Paper & Pulp etc. where
participants were fewer, have been clubbed together under “others”.
CONFIDENTIAL 7
About : India Compensation Growth Outlook 2012
Sector Wise Participant Mix
IT-Software / Software Services 12%Others 8%Infra/Const/Real Est 7%BFSI 6%FMCG & FMCD 6%Automotive 6%Telecommunication 5%Consulting Services 5%Power & Energy 4%ITES / BPO / KPO 4%Pharmaceuticals 4%Oil & Gas 3%Chemicals/Petrochem / Plastics / Fertilizers / Pesticides3%Heavy Engineering / Heavy Machinery 2%
Every sector had minimum of 30 participants. Sectors like Gems & Jewellary, Paper & Pulp etc. where
participants were fewer, have been clubbed together under “others”.
CONFIDENTIAL 8
About : India Compensation Growth Outlook 2012
Sector Wise Participant Mix
Diversified Conglomerate 2%Bldg Material-Cement /Sanitary ware / Ceramics / Glass2%Steel & Basic Metals 2%Medical / Healthcare / Hospital 2%Textiles / Garments / Apparel 2%Retail 2%Animation/Advt/Media / Entertainment 2%Electrical Products 2%Industrial Products 2%Hotels/Travel / Hospitality 2%Logistics 1%Facility / Bldg Mgmt/HVAC 1%Mining 1%IT-HW & Office Automation 1%
Every sector had minimum of 30 participants. Sectors like Gems & Jewellary, Paper & Pulp etc. where
participants were fewer, have been clubbed together under “others”.
CONFIDENTIAL 9
8%
7% 6% 6% 6%
5% 5%4% 4%
4%3% 3%
2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 1% 1% 1% 1%
12%
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11%
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About : India Compensation Growth Outlook 2012
Sector Wise Mix of Participants
Every sector had minimum of 30 participants. Sectors like Gems & Jewellary, Paper & Pulp etc. where
participants were fewer, have been clubbed together under “others”.
CONFIDENTIAL 10
Summary Results : India Compensation Growth Outlook 2012
CONFIDENTIAL 11
11.89%11.54%
0%
2%
4%
6%
8%
10%
12%
14%
2011 2012
Outlook 2012
Marginal drop expected in salary hikes in 2012 as compared to 2011 From 11.89 % in 2011 to 11.54% in 2012
CONFIDENTIAL 12
Outlook 2012
Both Manufacturing and Services expects similar drops in salary hikes
2012 2012
11.91% 11.87%11.58% 11.49%
0%
2%
4%
6%
8%
10%
12%
14%
Manufacturing Services
2011 20112012 2012
CONFIDENTIAL 13
11.71%12.17%
11.41% 11.73%
0%
2%
4%
6%
8%
10%
12%
14%
Indian Companies MNC Companies
Outlook 2012
Multinational companies expected to have marginally higher drop as compared to Indian companies
2011 2012 2011 2012
CONFIDENTIAL 14
Outlook 2012 : Industry Wise
Prominent sectors where hikes expected to be significantly lower than 2011
• Telecommunication
• Heavy Engineering / Machinery
• Retail
• BFSI
2011 2012Change Over
2011Telecommunication 11.82% 10.16% -1.66%Animation/Advt/Media Entertainment 12.14% 11.00% -1.14%Heavy Engineering /Machinery 12.63% 11.75% -0.88%Retail 11.25% 10.38% -0.88%Bldg Material - Cement/Sanitaryware/Glass 12.48% 11.76% -0.71%BFSI 11.21% 10.53% -0.68%Power & Energy 12.00% 11.42% -0.58%IT-Software / Software Services 12.49% 12.04% -0.46%Infra /Construction/Real Estate 12.41% 11.97% -0.44%IT-Hardware & Office Automation 11.40% 11.00% -0.40%Hotels/Travel/Hospitality 11.00% 10.60% -0.40%FMCG & FMCD 12.02% 11.63% -0.40%
• Power & Energy
• IT Software
• FMCG / FMCD
• Infrastructure / Construction
• Building Material
CONFIDENTIAL 15
Outlook 2012 : Industry Wise
Prominent sectors where hikes expected to be higher as compared to 2011
Medical / Healthcare / Hospitals Automotive Pharmaceuticals
2011 2012Change Over
2011Medical/Healthcare/Hospitals 11.16% 12.58% 1.42%Automotive 12.53% 13.05% 0.52%Pharmaceuticals 12.97% 13.21% 0.23%Facility/Bldg Management/HVAC 9.91% 10.00% 0.09%Logistics 10.67% 10.75% 0.08%Industrial Products 12.20% 12.27% 0.07%Oil & Gas 10.71% 10.77% 0.06%
CONFIDENTIAL 16
Outlook 2012 : Industry Wise
Sectors where hikes expected to be above the average 11.54% hike for all sectors• Pharmaceuticals • Automotive • Medical / Healthcare / Hospitals • Industrial Products • IT Software• Infrastructure / Construction • Heavy Engineering
2011 2012Pharmaceuticals 12.97% 13.21%Automotive 12.53% 13.05%Medical/Healthcare/Hospitals 11.16% 12.58%Industrial Products 12.20% 12.27%IT-Software / Software Services 12.49% 12.04%Infra /Construction/Real Estate 12.41% 11.97%Bldg Material - Cement/Sanitaryware/Glass 12.48% 11.76%Heavy Engineering /Machinery 12.63% 11.75%Chem/Petrochem/Plastics/Fertilizers 11.97% 11.69%FMCG & FMCD 12.02% 11.63%
CONFIDENTIAL 17
Outlook 2012 : Industry Wise
Sectors where hikes expected to be below the average 11.54% hike for all sectors : • Mining • Facility Management / HVAC• Retail• Oil & Gas • BFSI• Logistics • Telecom• Textiles / Garments / Apparel • ITeS / BPO / KPO
2011 2012Power & Energy 12.00% 11.42%Consulting Services 11.79% 11.40%Electrical Products 11.53% 11.40%IT-Hardware & Office Automation 11.40% 11.00%Animation/Advt/Media Entertainment 12.14% 11.00%ITES / BPO / KPO 11.05% 10.88%Diversified Conglomerate 11.00% 10.82%Textiles / Garments / Apparel 10.88% 10.78%Oil & Gas 10.71% 10.77%Logistics 10.67% 10.75%Steel & Basic Metals 11.00% 10.70%Hotels/Travel/Hospitality 11.00% 10.60%BFSI 11.21% 10.53%Retail 11.25% 10.38%Telecommunication 11.82% 10.16%Facility/Bldg Management/HVAC 9.91% 10.00%Mining 8.63% 8.25%
CONFIDENTIAL 18
No-Change35%
Increase 30%
Decrease35%
Outlook 2012 : Increase / Decrease
35% of the participating companies expected to give lower hike in 2012 as compared to 2011
35% of the participating companies expected to maintain the same hike as in 2011
30% of the participating companies expected to give higher hike in 2012 as compared to 2011
CONFIDENTIAL 19
11.3%
12.0%
12.4% 12.3%12.4%
11.6%
10.8%
11.5%
12.1%12.2% 12.2%
11.5%
10%
11%
11%
12%
12%
13%
13%
> 5,000employees
1001 - 5000 251 - 500 50 - 250 501 - 1000 < 50
2011 2012
Outlook 2012 : Size Wise
Lower salary hikes expected across all segments Lesser drop expected in Mid Size Organizations Higher drop expected in Larger organizations, as well as Micro SMEs
CONFIDENTIAL 20
India Compensation Growth Outlook 2012 : Detailed Analysis
CONFIDENTIAL 21
Outlook 2012 : at Junior Management Level
Lower salary hikes expected across all levels of performances Gap between Weakest and Highest Performers expected to reduce
2.2%
4.8%
8.8%
12.6%
17.3%
2.2%
4.5%
8.3%
12.1%
16.8%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
CONFIDENTIAL 22
Outlook 2012 : at Middle Management Level
Lower salary hikes expected across all levels of performances Gap between Weakest and Highest Performers expected to reduce
2.2%
4.6%
8.5%
12.2%
16.6%
2.1%
4.4%
8.0%
11.7%
15.6%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
CONFIDENTIAL 23
Outlook 2012 : at Senior/Top Management Level
Lower salary hikes expected across all levels of performances Gap between Weakest and Highest Performers expected to reduce
2.4%
4.1%
8.0%
12.1%
16.4%
2.2%
4.0%
7.7%
11.7%
15.6%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
CONFIDENTIAL 24
India Compensation Growth Outlook 2012 :
Detailed Industry Wise Results
CONFIDENTIAL 25
Automotive
CONFIDENTIAL 26
12.53%
11.89%
13.05%
11.54%
10%
11%
12%
13%
14%
15%
Automotive Average All Sectors
Outlook 2012 : Automotive – Overall
Expected Salary hikes in Automotive Sector better than average for all sectors Expected salary hike in 2012 is 13.05% significantly up as compared to 12.53%
in 2011
2011 20112012 2012
CONFIDENTIAL 27
Increase, 42%
Decrease, 27%
No-Change, 31%
Outlook 2012 : Automotive – Overall
42% of the companies are expected to give a higher hike as compared to last year
Another 31% of the companies are expected to maintain the same hike as last year
27% of the companies expected to give a lower hike as compared to last year
CONFIDENTIAL 28
Outlook 2012 : Automotive – Junior Level
3.3%
6.3%
10.0%
14.3%
19.5%
3.2%
6.2%
10.5%
15.0%
20.0%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Significantly higher salary hikes for average and above average performers
CONFIDENTIAL 29
Outlook 2012 : Automotive – Middle Level
3.2%
6.2%
10.1%
13.9%
18.3%
3.1%
6.3%
10.5%
14.5%
19.0%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Significantly higher salary hikes for average and above average performers
CONFIDENTIAL 30
Outlook 2012 : Automotive – Senior Level
3.1%
5.7%
9.9%
14.3%
18.4%
3.0%
6.0%
10.3%
14.9%
18.8%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Significantly higher salary hikes for average and above average performers
CONFIDENTIAL 31
Automotive : % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Gradual rise in variable pay along with level
9%
14%
20%
0%
4%
8%
12%
16%
20%
Junior Management Middle Management Senior / Top Management
CONFIDENTIAL 32
Animation, Advertising, Media, Entertainment
CONFIDENTIAL 33
Outlook 2012 : Animation/Advt/Media – Overall
Salary hikes in 2011 at 11% expected to be lower than 12.14% in 2011 Drop higher than overall industry average
12.14%11.89%
11.00%
11.54%
10%
11%
12%
13%
14%
15%
Animation/Advt/Media/Entertainment Average All Sectors
2011 20112012 2012
CONFIDENTIAL 34
Increase, 29%
Decrease, 36%
No-Change, 36%
Outlook 2012 : Animation/Advt/Media– Overall
36% of the companies expected to give lower hikes as compared to last year
29% of the companies are expected to give higher hikes as compared to last year
Remaining 36% of the companies are expected to maintain the same hike as last year
CONFIDENTIAL 35
Outlook 2012 : Animation/Advt/Media– Junior Level
2.0%
4.5%
8.0%
11.5%
16.0%
2.0%4.0%
7.0%
10.5%
15.0%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected across all levels of performances Gap between Weakest and Highest Performers expected to reduce
CONFIDENTIAL 36
Outlook 2012 : Animation/Advt/Media– Middle Level
2.0%4.0%
8.5%
11.5%
15.5%
2.0%4.0%
7.5%
10.5%
14.0%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected across all levels of performances Gap between Weakest and Highest Performers expected to reduce No change in salary hikes for below average performers
CONFIDENTIAL 37
Outlook 2012 : Animation/Advt/Media– Senior Level
2.0%4.0%
8.0%
12.0%
17.0%
1.0%3.0%
7.0%
11.0%
15.0%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected across all levels of performances Gap between Weakest and Highest Performers expected to reduce Drop expected in salary hikes for below average performers
CONFIDENTIAL 38
Animation/Advt/Media – % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Gradual rise in variable pay along with level
6%
10%
15%
0%
4%
8%
12%
16%
20%
Junior Management Middle Management Senior / Top Management
CONFIDENTIAL 39
PHARMACEUTICAL
CONFIDENTIAL 40
12.97%
11.89%
13.21%
11.54%
10%
11%
12%
13%
14%
15%
Pharmaceutical Average All Sectors
Outlook 2012 : Pharmaceutical – Overall
While average salary hike across all sectors is expected to reduce from 11.89% in 2011 to 11.54% in 2012, Pharmaceuticals sector employees can expect an average salary hike in 2012 of 13.21% (up from 12.97% average in 2011)
2011 20112012 2012
CONFIDENTIAL 41
Increase, 33%
Decrease, 26%
No-Change, 41%
Outlook 2012 : Pharmaceutical – Overall
33% of the pharmaceutical companies are expected to give a higher hike as compared to 2011
Another 41% of the pharmaceutical companies are expected to maintain the same hike as 2011
26% of the pharmaceutical companies expected to give a lower hike as compared to 2011
CONFIDENTIAL 42
Outlook 2012 : Pharmaceutical – Junior Level
Lower salary hikes expected for below average performances Higher salary hikes expected for average and above average performances
2.8%
6.3%
9.2%
12.8%
17.8%
2.7%
6.2%
9.5%
13.1%
18.1%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
CONFIDENTIAL 43
Outlook 2012 : Pharmaceutical – Middle Level
2.7%
5.9%
9.0%
12.6%
16.6%
2.6%
5.8%
9.4%
13.0%
17.1%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected for below average performances Higher salary hikes expected for average and above average
performances
CONFIDENTIAL 44
Outlook 2012 : Pharmaceutical – Senior Level
3.0%
5.5%
9.4%
12.8%
16.8%
2.7%
5.2%
9.6%
13.2%
17.6%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected for below average performances Higher salary hikes expected for average and above average
performances
CONFIDENTIAL 45
Pharmaceutical – % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Gradual rise in variable pay along with level
8%
13%
20%
0%
4%
8%
12%
16%
20%
Junior Management Middle Management Senior / Top Management
CONFIDENTIAL 46
Banking, Financial Services & Insurance
CONFIDENTIAL 47
Outlook 2012 : BFSI – Overall
Salary hikes in BFSI sector expects to drop from average of 11.21% in 2011 to average of 10.53% in 2012
11.21%
11.89%
10.53%
11.54%
10%
11%
12%
13%
14%
15%
BFSI Average All Sectors
2011 20112012 2012
CONFIDENTIAL 48
Increase, 23%
Decrease, 40%
No-Change, 38%
Outlook 2012 : BFSI – Overall
40% of the companies are expected to give a lower hike as compared to 2011
38% of the companies are expected to maintain the same hike as 2011
23% of the companies expected to give a higher hike as compared to last year
CONFIDENTIAL 49
Outlook 2012 : BFSI – Junior Level
1.1%
4.0%
9.0%
12.6%
16.5%
0.8%
3.0%
7.4%
11.3%
15.1%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected for below average performances Higher salary hikes expected for average and above average
performances
CONFIDENTIAL 50
Outlook 2012 : BFSI – Middle Level
0.9%
3.7%
8.7%
12.0%
15.8%
0.7%
3.1%
7.5%
11.3%
14.8%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected for below average performances Higher salary hikes expected for average and above average
performances
CONFIDENTIAL 51
Outlook 2012 : BFSI – Senior Level
1.3%
3.7%
8.9%
13.1%
15.6%
1.1%2.5%
7.9%
11.1%
14.9%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected for below average performances Higher salary hikes expected for average and above average
performances
CONFIDENTIAL 52
BFSI – % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Gradual rise in variable pay along with level
14%
18%
23%
0%
4%
8%
12%
16%
20%
24%
28%
Junior Management Middle Management Senior / Top Management
CONFIDENTIAL 53
Building Material -
Cement / Sanitary ware / Ceramics / Glass
CONFIDENTIAL 54
12.48%
11.89%11.76%11.54%
10%
11%
12%
13%
14%
15%
Building Material - Cement / Sanitaryw are / Ceramics / Glass
Average All Sectors
Outlook 2012 : Building Material – Overall
2011 20112012 2012
Salary hikes in the sector expects to drop from average of 12.48% in 2011 to average of 11.76% in 2012
Though a sharp drop but the expected hike in the sector at 11.76% would still be better than average expected hike of 11.58% across all sectors
CONFIDENTIAL 55
Increase, 14%
Decrease, 43%
No-Change, 43%
Outlook 2012 : Building Material– Overall
43% of the companies are expected to give lower hike as compared to last year
Another 43% of the companies are expected to maintain the same hikes as last year
14% of the companies expected to give a higher hike as compared to last year
Building Material : Cement / Sanitary ware / Ceramics / Glass
CONFIDENTIAL 56
3.0%
5.3%
9.5%
12.6%
16.9%
2.6%4.2%
8.8%
11.7%
15.8%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Outlook 2012 : Building Material– Junior Level
Building Material : Cement / Sanitary ware / Ceramics / Glass
Lower salary hikes across all levels of performance
CONFIDENTIAL 57
2.9%5.0%
9.2%
12.4%
16.5%
2.6%4.3%
8.3%
11.6%
15.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Outlook 2012 : Building Material– Middle Level
Building Material : Cement / Sanitary ware / Ceramics / Glass
Lower salary hikes across all levels of performance
CONFIDENTIAL 58
3.9%5.8%
10.3%
13.7%
18.4%
3.8%5.3%
9.2%
11.7%
15.8%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Outlook 2012 : Building Material – Senior Level
Building Material : Cement / Sanitary ware / Ceramics / Glass
Lower salary hikes across all levels of performance Drop relatively higher at senior management level
CONFIDENTIAL 59
14%16% 16%
0%
4%
8%
12%
16%
20%
24%
28%
Junior Management Middle Management Senior / Top Management
Building Material – % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives)
Marginal difference in % variable compensation across levels
Building Material : Cement / Sanitary ware / Ceramics / Glass
CONFIDENTIAL 60
Chemicals Chemicals / Petro-chemicals / Plastics / Fertilizers / Pesticides
CONFIDENTIAL 61
Outlook 2012 : Chemicals – Overall
11.97% 11.89%11.69% 11.54%
10%
11%
12%
13%
14%
15%
Chemicals / Petrochem / Plastics /Fertilizers / Pesticides
Average All Sectors
2011 20112012 2012
Salary hikes in the sector expects to drop from average of 11.97% in 2011 to average of 11.69% in 2012
The drop is in line with fall in other sectors.
CONFIDENTIAL 62
Increase, 21%
Decrease, 45%
No-Change, 34%
Outlook 2012 : Chemicals– Overall
45% of the companies are expected to give a lower hike as compared to 2011
34% of the companies are expected to maintain the same hike as 2011
21% of the companies expected to give a higher hike as compared to 2011
Chemicals - Chemicals / Petro-chemicals / Plastics / Fertilizers / Pesticides
CONFIDENTIAL 63
4.3%6.1%
9.4%
12.9%
16.7%
4.1%5.8%
9.0%
12.5%
15.9%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Outlook 2012 : Chemicals– Junior Level
Chemicals - Chemicals / Petro-chemicals / Plastics / Fertilizers / Pesticides
Lower salary hikes expected at all levels of performances
CONFIDENTIAL 64
4.1%6.0%
9.3%
12.6%
16.5%
4.0%5.8%
8.9%
12.0%
15.7%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Outlook 2012 : Chemicals– Middle Level
Chemicals - Chemicals / Petro-chemicals / Plastics / Fertilizers / Pesticides
Lower salary hikes expected at all levels of performances
CONFIDENTIAL 65
4.0%5.8%
9.0%
12.0%
15.0%
3.8%5.7%
8.5%
11.6%
14.7%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Outlook 2012 : Chemicals– Senior Level
Chemicals - Chemicals / Petro-chemicals / Plastics / Fertilizers / Pesticides
Lower salary hikes expected at all levels of performances % Change expected to be lower at senior management level
CONFIDENTIAL 66
8%
12%
15%
0%
4%
8%
12%
16%
20%
24%
28%
Junior Management Middle Management Senior / Top Management
Chemicals– % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Gradual rise in variable pay along with level
Chemicals - Chemicals / Petro-chemicals / Plastics / Fertilizers / Pesticides
CONFIDENTIAL 67
Consulting Services
CONFIDENTIAL 68
Outlook 2012 : Consulting Services – Overall
11.79% 11.89%
11.40% 11.54%
10%
11%
12%
13%
14%
15%
Consulting Services Average All Sectors
2011 20112012 2012
Salary hikes in sector expects to drop from average of 11.79% in 2011 to average of 11.40% in 2012
Closely mirrors the drop expected in other sectors
CONFIDENTIAL 69
Increase, 30%
Decrease, 36%
No-Change, 34%
Outlook 2012 : Consulting Services– Overall
36% of the companies are expected to give a lower hike as compared to 2011
34% of the companies are expected to maintain the same hike as 2011
30% of the companies expected to give a higher hike as compared to 2011
CONFIDENTIAL 70
Outlook 2012 : Consulting Services– Junior Level
2.2%3.8%
8.1%
11.6%
16.2%
1.6%3.4%
7.4%
11.1%
15.4%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected at all levels of performances
CONFIDENTIAL 71
Outlook 2012 : Consulting Services– Middle Level
2.2%3.8%
8.1%
11.6%
16.2%
1.6%3.4%
7.4%
11.1%
15.4%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected at all levels of performances
CONFIDENTIAL 72
Outlook 2012 : Consulting Services– Senior Level
2.4%4.0%
8.2%
11.5%
15.2%
2.2%3.6%
7.8%
11.2%
14.6%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected at all levels of performances
CONFIDENTIAL 73
Consulting Services– % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Gradual rise in variable pay along with level
13%
18%
23%
0%
4%
8%
12%
16%
20%
24%
28%
Junior Management Middle Management Senior / Top Management
CONFIDENTIAL 74
Diversified Conglomerates
CONFIDENTIAL 75
Outlook 2012 : Diversified – Overall
11.20%
11.89%
10.82%
11.54%
10%
11%
12%
13%
14%
15%
Diversif ied Conglomerate Average All Sectors
2011 20112012 2012
Salary hikes in the sector expects to drop from average of 11.20% in 2011 to average of 10.82% in 2012
Expected salary hikes lower than average across all other sectors
CONFIDENTIAL 76
Increase, 18%
Decrease, 47%
No-Change, 35%
Outlook 2012 : Diversified – Overall
47% of the companies are expected to give a lower hike as compared to 2011
35% of the companies are expected to maintain the same hike as 2011
18% of the companies expected to give a higher hike as compared to 2011
CONFIDENTIAL 77
Outlook 2012 : Diversified – Junior Level
2.6%4.2%
8.7%
13.3%
18.9%
2.1%3.9%
8.1%
12.9%
17.4%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected at all levels of performances
CONFIDENTIAL 78
Outlook 2012 : Diversified – Middle Level
2.2%4.0%
8.5%
13.5%
19.0%
2.0%3.9%
8.0%
12.8%
17.0%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected at all levels of performances
CONFIDENTIAL 79
Outlook 2012 : Diversified – Senior Level
2.0%4.1%
8.4%
13.0%
16.8%
1.9%4.0%
8.0%
12.5%
16.0%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected at all levels of performances
CONFIDENTIAL 80
Diversified– % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Marginal rise in variable pay along with level
10%12%
15%
0%
4%
8%
12%
16%
20%
24%
28%
Junior Management Middle Management Senior / Top Management
CONFIDENTIAL 81
Electrical Products
CONFIDENTIAL 82
Outlook 2012 : Electrical Products – Overall
11.53%
11.89%
11.40% 11.54%
10%
11%
12%
13%
14%
15%
Electrical Products Average All Sectors
2011 20112012 2012
Salary hikes in sector expects to marginally drop from average of 11.53% in 2011 to average of 11.40% in 2012
CONFIDENTIAL 83
Increase, 27%
Decrease, 40%
No-Change, 33%
Outlook 2012 : Electrical Products– Overall
27% of the companies are expected to give a higher hike as compared to 2011
Another 33% of the companies are expected to maintain the same hike as 2011
40% of the companies expected to give a lower hike as compared to 2011
CONFIDENTIAL 84
Outlook 2012 : Electrical Products– Junior Level
2.1%
4.7%
8.4%
11.7%
15.8%
1.7%
4.3%
8.2%
11.3%
15.2%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Marginally lower salary hikes expected at all levels of performances
CONFIDENTIAL 85
Outlook 2012 : Electrical Products– Middle Level
2.2%
4.6%
8.5%
11.8%
15.5%
2.0%
4.5%
8.5%
11.5%
15.3%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Marginally lower salary hikes expected at all levels of performances
CONFIDENTIAL 86
Outlook 2012 : Electrical Products– Senior Level
2.0%
4.5%
8.2%
11.9%
15.1%
2.0%
4.5%
8.0%
11.5%
15.0%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Marginally lower salary hikes expected at all levels of performances
CONFIDENTIAL 87
Electrical Products– % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Gradual rise in variable pay along with level
10%
14%
19%
0%
4%
8%
12%
16%
20%
24%
28%
Junior Management Middle Management Senior / Top Management
CONFIDENTIAL 88
Facility / Building Management / HVAC
CONFIDENTIAL 89
Outlook 2012 : Facility/Building Management – Overall
9.91%
11.89%
10.00%
11.54%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
Facility / Building Management /HVAC
Average All Sectors
2011 20112012 2012
Salary hikes in sector expects to remain at similar level as in 2011. Marginally up from average of 9.91% in 2011 to average of 10% in 2012
CONFIDENTIAL 90
Increase, 18%
Decrease, 18%No-Change,
64%
Outlook 2012 : Facility/Building Management– Overall
64% of the companies are expected to maintain the same hike as compared to 2011
18% of the companies are expected to give lower hike as compared to 2011
18% of the pharmaceutical companies expected to give higher hike as compared to 2011
CONFIDENTIAL 91
Outlook 2012 : Facility/Building Management– Junior Level
1.3%
3.7%
8.0%
11.7%
18.3%
1.5%
4.0%
8.1%
11.5%
18.0%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Marginal or No change in salary hike expected at most levels of performances
CONFIDENTIAL 92
Outlook 2012 : Facility/Building Management– Middle Level
2.0%
5.0%
8.8%
12.8%
18.0%
3.0%5.1%
8.9%
13.0%
17.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Marginal or No change in salary hike expected at most levels of performances
CONFIDENTIAL 93
Outlook 2012 : Facility/Building Management– Senior Level
3.0%5.0%
7.3%
12.0%
16.1%
3.1%5.2%
8.0%
12.2%
16.0%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Marginal or No change in salary hike expected at most levels of performances
CONFIDENTIAL 94
Facility/Building Management– % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Gradual rise in variable pay along with level
8%
13%
18%
0%
4%
8%
12%
16%
20%
24%
28%
Junior Management Middle Management Senior / Top Management
CONFIDENTIAL 95
FMCG & FMCD
CONFIDENTIAL 96
12.02% 11.89%11.63% 11.54%
10%
11%
12%
13%
14%
15%
FMCG & FMCD Average All Sectors
Outlook 2012 : FMCG & FMCD – Overall
2011 20112012 2012
Salary hikes in sector expects to drop from average of 12.02% in 2011 to average of 11.63% in 2012
CONFIDENTIAL 97
Increase, 23%
Decrease, 33%
No-Change, 44%
Outlook 2012 : FMCG & FMCD – Overall
23% of the companies are expected to give a higher hike as compared to last year
44% of the companies are expected to maintain the same hike as last year
33% of the companies expected to give a lower hike as compared to last year
CONFIDENTIAL 98
Outlook 2012 : FMCG & FMCD – Junior Level
1.7%
4.5%
9.3%
12.9%
17.9%
2.0%
4.3%
9.0%
12.6%
17.3%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 99
Outlook 2012 : FMCG & FMCD – Middle Level
1.8%
4.4%
9.0%
12.5%
17.5%
1.5%
4.0%
8.7%
12.3%
17.0%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 100
Outlook 2012 : FMCG & FMCD – Senior Level
1.3%
3.7%
8.9%
13.1%
15.6%
1.1%2.5%
8.3%
12.5%
15.0%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 101
FMCG & FMCD– % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Significantly high variable pay as compared to other sectors Lower variable compensation at Junior level Gradual rise in variable pay along with level
15%
18%
25%
0%
4%
8%
12%
16%
20%
24%
28%
Junior Management Middle Management Senior / Top Management
CONFIDENTIAL 102
Heavy Engineering & Machinery
CONFIDENTIAL 103
Outlook 2012 : Heavy Engg/Machinery - Overall
12.63%
11.89%11.75%11.54%
10%
11%
12%
13%
14%
15%
Heavy Engg / Machinery Average All Sectors
2011 20112012 2012
Salary hikes in sector expects to drop from average of 12.63% in 2011 to average of 11.75% in 2012
Salary hikes in the sector are higher than average salary hikes expected across all other sectors
CONFIDENTIAL 104
Increase, 29%
Decrease, 46%
No-Change, 25%
Outlook 2012 : Heavy Engg/Machinery– Overall
46% of the companies are expected to give a lower hike as compared to 2011
25% of the companies are expected to maintain the same hike as 2011
29% of the companies expected to give a higher hike as compared to 2011
CONFIDENTIAL 105
Outlook 2012 : Heavy Engg/Machinery– Junior Level
2.6%
6.1%
11.0%
14.5%
19.6%
2.4%
5.4%
9.8%
13.2%
17.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 106
Outlook 2012 : Heavy Engg/Machinery– Middle Level
2.4%
5.5%
10.0%
13.5%
18.0%
2.4%
5.0%
8.9%
12.6%
16.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 107
Outlook 2012 : Heavy Engg/Machinery– Senior Level
2.1%
5.1%
9.7%
13.6%
16.5%
2.0%
4.5%
9.0%
12.5%
15.2%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance Salary hikes at senior management level significantly lower as
compared to middle / junior level
CONFIDENTIAL 108
Heavy Engg/Machinery - % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Gradual rise in variable pay along with level
11%
16%
20%
0%
4%
8%
12%
16%
20%
24%
28%
Junior Management Middle Management Senior / Top Management
CONFIDENTIAL 109
Hospitality Hotels / Restaurants / Travel
CONFIDENTIAL 110
11.00%
11.89%
10.60%
11.54%
10%
11%
12%
13%
14%
15%
Hotels / Travel / Hospitality Average All Sectors
Outlook 2012 : Hospitality – Overall
Hospitality - Hotels / Restaurants / Travel
2011 20112012 2012
Salary hikes in sector expects to drop from average of 11% in 2011 to average of 10.60% in 2012
CONFIDENTIAL 111
Increase, 19%
Decrease, 31%
No-Change, 50%
Outlook 2012 : Hospitality – Overall
50% of the companies are expected to maintain the same hike as last year
31% are expected to give lower hike as compared to last year
19% of the companies expected to give higher hike as compared to last year
Hospitality - Hotels / Restaurants / Travel
CONFIDENTIAL 112
4.0%
6.6%
10.1%
13.2%
16.1%
3.9%
6.5%
9.6%
12.8%
15.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Outlook 2012 : Hospitality – Junior Level
Hospitality - Hotels / Restaurants / Travel
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 113
3.9%
6.5%
9.8%
13.1%
15.6%
3.9%
6.2%
9.4%
12.7%
15.1%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Outlook 2012 : Hospitality – Middle Level
Hospitality - Hotels / Restaurants / Travel
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 114
3.5%5.0%
9.0%
12.4%
15.2%
3.0%4.8%
8.5%
12.1%
14.8%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Outlook 2012 : Hospitality – Senior Level
Hospitality - Hotels / Restaurants / Travel
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 115
13%15%
18%
0%
4%
8%
12%
16%
20%
24%
28%
Junior Management Middle Management Senior / Top Management
Hospitality– % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Marginal rise in variable pay along with level
Hospitality - Hotels / Restaurants / Travel
CONFIDENTIAL 116
Industrial Products
CONFIDENTIAL 117
Outlook 2012 : Industrial Products – Overall
12.20%11.89%
12.27%
11.54%
10%
11%
12%
13%
14%
15%
Industrial Products Average All Sectors
2011 20112012 2012
Salary hikes in sector expects to marginally improve from average of 12.2% in 2011 to average of 12.27% in 2012
A large percentage (40%) of companies expected to maintain the same hike as given last year
CONFIDENTIAL 118
Increase, 33%
Decrease, 27%
No-Change, 40%
Outlook 2012 : Industrial Products– Overall
33% of the companies are expected to give a higher hike as compared to last year
40% of the companies are expected to maintain the same hike as last year
27% of the companies expected to give a lower hike as compared to last year
CONFIDENTIAL 119
Outlook 2012 : Industrial Products– Junior Level
2.3%
6.5%
9.8%
13.1%
18.3%
2.5%
6.6%
10.0%
13.3%
18.2%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Marginal changes in salary hikes expected for most levels of performance
CONFIDENTIAL 120
Outlook 2012 : Industrial Products– Middle Level
2.4%
6.4%
10.0%
13.2%
17.4%
2.3%
6.5%
10.2%
13.0%
17.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Marginal changes in salary hikes expected for most levels of performance
CONFIDENTIAL 121
Outlook 2012 : Industrial Products– Senior Level
2.5%
5.8%
9.5%
12.9%
16.8%
2.5%
6.0%
9.7%
13.1%
16.9%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Marginal changes in salary hikes expected for most levels of performance
CONFIDENTIAL 122
Industrial Products – % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Steep rise in variable pay along with level
5%
12%
20%
0%
4%
8%
12%
16%
20%
24%
28%
Junior Management Middle Management Senior / Top Management
CONFIDENTIAL 123
Infrastructure / Construction / Real Estate
CONFIDENTIAL 124
Outlook 2012 : Infra /Const / Real Estate – Overall
12.41%
11.89%11.97%
11.54%
10%
11%
12%
13%
14%
15%
Infrastructure / Construction / RealEstate
Average All Sectors
2011 20112012 2012
Salary hikes in sector expects to drop from average of 12.41% in 2011 to average of 11.97% in 2012
Despite the drop, the expected salary hikes in 2012 to be better as compared to average for other sectors
CONFIDENTIAL 125
Increase, 31%
Decrease, 41%
No-Change, 28%
Outlook 2012 : Infra /Const / Real Estate– Overall
41% of the companies are expected to give a lower hike as compared to 2011
28% of the companies are expected to maintain the same hike as 2011
31% of the companies expected to give a higher hike as compared to 2011
CONFIDENTIAL 126
Outlook 2012 : Infra /Const / Real Estate– Junior Level
2.3%
4.8%
9.0%
13.3%
18.4%
2.1%
4.6%
8.6%
12.8%
17.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 127
Outlook 2012 : Infra /Const / Real Estate – Middle Level
2.1%
4.9%
8.8%
13.0%
18.2%
2.1%
4.7%
8.5%
12.4%
17.4%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 128
Outlook 2012 : Infra /Const / Real Estate – Senior Level
2.0%
4.8%
8.9%
13.1%
17.4%
2.0%
4.5%
8.3%
12.5%
16.8%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 129
Infra /Const / Real Estate – % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Marginal rise in variable pay along with level
12%
15%
18%
0%
4%
8%
12%
16%
20%
24%
28%
Junior Management Middle Management Senior / Top Management
CONFIDENTIAL 130
ITES / BPO / KPO
CONFIDENTIAL 131
Outlook 2012 : ITES / BPO / KPO – Overall
11.05%
11.89%
10.88%
11.54%
10%
11%
12%
13%
14%
15%
ITES / BPO / KPO Average All Sectors
2011 20112012 2012
Salary hikes in sector expects to marginally drop from average of 11.05% in 2011 to average of 10.88% in 2012
Expected salary hikes significantly lower as compared to other sectors
CONFIDENTIAL 132
Increase, 28%
Decrease, 33%
No-Change, 40%
Outlook 2012 : ITES / BPO / KPO – Overall
28% of the companies are expected to give a higher hike as compared to last year
40% of the companies are expected to maintain the same hike as last year
33% of the companies expected to give a lower hike as compared to last year
CONFIDENTIAL 133
Outlook 2012 : ITES / BPO / KPO– Junior Level
1.0%3.2%
8.3%
12.0%
16.7%
1.2%3.2%
8.2%
11.8%
16.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 134
Outlook 2012 : ITES / BPO / KPO– Middle Level
1.2%2.8%
8.0%
11.2%
15.6%
1.1%2.7%
7.8%
10.8%
15.1%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 135
Outlook 2012 : ITES / BPO / KPO– Senior Level
1.1% 1.8%
7.8%
11.7%
15.4%
1.0% 1.7%
7.5%
11.5%
15.0%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 136
ITES / BPO / KPO – % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Gradual rise in variable pay along with level
12%15%
20%
0%
4%
8%
12%
16%
20%
24%
28%
J unior Management Middle Management Senior / TopManagement
CONFIDENTIAL 137
IT-Software / Software Services
CONFIDENTIAL 138
Outlook 2012 : IT-Software/Software Services – Overall
12.49%
11.89%12.04%
11.54%
10%
11%
12%
13%
14%
15%
IT-Software / SoftwareServices
Average All Sectors
2011 20112012 2012
Salary hikes in sector expects to drop from average of 12.49% in 2011 to average of 12.04% in 2012
Despite the drop, sector expects a salary hike which is significantly higher than other sectors in economy
CONFIDENTIAL 139
Increase, 34%
Decrease, 38%
No-Change, 27%
Outlook 2012 : IT-Software/Software Services– Overall
34% of the companies are expected to give a higher hike as compared to last year
27% of the companies are expected to maintain the same hike as last year
38% of the companies expected to give a lower hike as compared to last year
CONFIDENTIAL 140
Outlook 2012 : IT-Software/Software Services– Junior Level
1.7%4.3%
8.6%
12.9%
18.3%
1.7%4.1%
8.1%
12.2%
17.7%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 141
Outlook 2012 : IT-Software/Software Services– Middle Level
1.6%4.1%
8.5%
12.7%
18.0%
1.5%4.0%
8.0%
12.2%
17.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 142
Outlook 2012 : IT-Software/Software Services– Senior Level
1.5%4.0%
7.9%
12.1%
17.2%
1.5%3.8%
7.3%
11.7%
16.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 143
IT-Software/Software Services - % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Significant rise in % variable pay along with level
9%
14%
21%
0%
4%
8%
12%
16%
20%
24%
28%
J unior Management Middle Management Senior / TopManagement
CONFIDENTIAL 144
IT-Hardware & Office Automation
CONFIDENTIAL 145
Outlook 2012 : IT-Hardware & Office Auto – Overall
11.40%
11.89%
11.00%
11.54%
10%
11%
12%
13%
14%
15%
IT-Hardware & OfficeAutomation
Average All Sectors
2011 20112012 2012
Salary hikes in sector expects to drop from average of 11.40% in 2011 to average of 11% in 2012
CONFIDENTIAL 146
Increase, 25%
Decrease, 35%
No-Change, 40%
Outlook 2012 : IT-Hardware & Office Auto– Overall
25% of the companies are expected to give a higher hike as compared to last year
40% of the companies are expected to maintain the same hike as last year
35% of the companies expected to give a lower hike as compared to last year
CONFIDENTIAL 147
Outlook 2012 : IT-Hardware & Office Auto– Junior Level
1.7%
4.5%
8.5%
12.9%
18.5%
1.6%
4.3%
8.0%
12.5%
17.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 148
Outlook 2012 : IT-Hardware & Office Auto– Middle Level
1.6%4.4%
8.3%
12.7%
18.0%
1.5%4.0%
7.8%
12.4%
17.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 149
Outlook 2012 : IT-Hardware & Office Auto– Senior Level
1.5%4.0%
8.1%
12.5%
16.5%
1.4%3.9%
7.9%
12.0%
16.0%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 150
IT-Hardware & Office Auto– % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Significantly high % of compensation is variable Lower variable compensation at Junior level Significant rise in % variable pay along with level
15%
21%
30%
0%
4%
8%
12%
16%
20%
24%
28%
32%
J unior Management Middle Management Senior / TopManagement
CONFIDENTIAL 151
Logistics
CONFIDENTIAL 152
Outlook 2012 : Logistics – Overall
10.67%
11.89%
10.75%
11.54%
10%
11%
12%
13%
14%
15%
Logistics Average All Sectors
2011 20112012 2012
Salary hikes in sector expects to marginally improve from average of 10.67% in 2011 to average of 10.75% in 2012
Large percentage (48%) of companies expects to maintain the same average salary hike as given in 2011
Expected salary hikes significantly lower as compared to the average for the other sectors
CONFIDENTIAL 153
Increase, 28%
Decrease, 24%
No-Change, 48%
Outlook 2012 : Logistics – Overall
28% of the companies are expected to give higher hike as compared to last year
48% of the companies are expected to maintain the same hike as last year
24% of the companies expected to give lower hike as compared to last year
CONFIDENTIAL 154
Outlook 2012 : Logistics – Junior Level
1.9%3.6%
8.2%
11.9%
14.6%
1.8%3.5%
8.3%
11.7%
14.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Marginal change in salary hikes expected for all levels of performance
CONFIDENTIAL 155
Outlook 2012 : Logistics – Middle Level
1.8%3.6%
8.0%
11.7%
14.5%
1.7%3.5%
7.9%
11.8%
14.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Marginal change in salary hikes expected for all levels of performance
CONFIDENTIAL 156
Outlook 2012 : Logistics – Senior Level
1.7%3.8%
8.5%
12.1%
15.0%
1.6%
3.8%
8.6%
12.0%
14.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
Weak Performer AveragePerformer
Good Performer HighestPerformer
2011 2012
Marginal change in salary hikes expected for all levels of performance
CONFIDENTIAL 157
Logistics– % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Gradual rise in variable pay along with level
12%
16%
20%
0%
4%
8%
12%
16%
20%
24%
28%
Junior Management Middle Management Senior / Top Management
CONFIDENTIAL 158
Healthcare/Hospitals/Medical
CONFIDENTIAL 159
11.16%
11.89%
12.58%
11.54%
10%
11%
12%
13%
14%
15%
Healthcare / Hospital /Medical
Average All Sectors
Outlook 2012 : Healthcare – Overall
Healthcare/Hospitals/Medical
2011 20112012 2012
Sector showing an opposite trend as compared to other sectors Salary hikes in sector expects to increase from average of 11.16% in
2011 to average of 12.58% in 2012 (as compared to average for all other sectors which is expected to drop from 11.92% to 11.58%)
CONFIDENTIAL 160
Increase, 53%
Decrease, 16%
No-Change, 32%
Outlook 2012 : Healthcare – Overall
53% of the companies are expected to give a higher hike as compared to 2011
32% of the companies are expected to maintain the same hike as 2011
Only 16% of the companies expected to give a lower hike as compared to 2011
Healthcare/Hospitals/Medical
CONFIDENTIAL 161
3.2%5.2%
8.3%
12.4%
16.4%
3.9%5.9%
9.5%
14.2%
18.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Outlook 2012 : Healthcare – Junior Level
Healthcare/Hospitals/Medical
Higher salary hikes expected for all levels of performance Significantly higher hikes for Top 2 levels of performance
CONFIDENTIAL 162
3.6%5.3%
8.4%
13.2%
16.9%
4.2%6.1%
9.7%
14.3%
18.8%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Outlook 2012 : Healthcare – Middle Level
Healthcare/Hospitals/Medical
Higher salary hikes expected for all levels of performance Significantly higher hikes for Top 2 levels of performance
CONFIDENTIAL 163
Outlook 2012 : Healthcare – Senior Level
Healthcare/Hospitals/Medical
3.8%5.4%
8.9%
13.1%
17.1%
4.5%6.5%
10.5%
14.5%
19.1%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Higher salary hikes expected for all levels of performance Significantly higher hikes for Top 2 levels of performance
CONFIDENTIAL 164
14%
17%
24%
0%
4%
8%
12%
16%
20%
24%
28%
J unior Management Middle Management Senior / TopManagement
Healthcare– % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Gradual rise in variable pay along with level
Healthcare/Hospitals/Medical
CONFIDENTIAL 165
Mining
CONFIDENTIAL 166
8.63%
11.89%
8.25%
11.54%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
Mining Average All Sectors
Outlook 2012 : Mining – Overall
2011 20112012 2012
Salary hikes in sector expects to drop from average of 8.63% in 2011 to average of 8.25% in 2012
Expected salary hikes in sector are significantly below other sectors
CONFIDENTIAL 167
Increase, 13%
Decrease, 25%No-Change,
63%
Outlook 2012 : Mining – Overall
63% of the companies are expected to maintain same average hike as in 2011
25% of the companies are expected give lower hike as compared to 2011
13% of the companies expected to give a higher hike as compared to 2011
CONFIDENTIAL 168
Outlook 2012 : Mining – Junior Level
1.5%3.3%
6.8%
11.5%
15.0%
1.4%3.1%
6.6%
11.1%
14.3%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Marginally lower salary hikes expected for all levels of performance
CONFIDENTIAL 169
Outlook 2012 : Mining – Middle Level
1.5%3.3%
6.8%
11.3%
14.8%
1.5%3.2%
6.6%
10.8%
14.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Marginally lower salary hikes expected for all levels of performance
CONFIDENTIAL 170
Outlook 2012 : Mining – Senior Level
1.5%3.3%
6.8%
11.2%
14.7%
1.5%3.2%
6.6%
10.8%
14.4%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Marginally lower salary hikes expected for all levels of performance
CONFIDENTIAL 171
Mining – % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Gradual rise in variable pay along with level
8%
12%15%
0%
4%
8%
12%
16%
20%
24%
28%
J unior Management Middle Management Senior / TopManagement
CONFIDENTIAL 172
Oil & Gas
CONFIDENTIAL 173
Outlook 2012 : Oil & Gas – Overall
10.71%
11.89%
10.77%
11.54%
10%
11%
12%
13%
14%
15%
Oil & Gas Average All Sectors
2011 20112012 2012
Salary hikes in sector expects to marginally improve from average of 10.71% in 2011 to average of 10.77% in 2012
48% of companies expected to maintain the same level of hike as 2011
CONFIDENTIAL 174
Increase, 26%
Decrease, 26%
No-Change, 48%
Outlook 2012 : Oil & Gas– Overall
26% of the companies are expected to give a higher hike as compared to 2011
48% of the companies are expected to maintain the same hike as 2011
26% of the companies expected to give a lower hike as compared to 2011
CONFIDENTIAL 175
Outlook 2012 : Oil & Gas– Junior Level
3.4%5.7%
8.5%10.8%
13.9%
3.4%5.6%
8.4%10.7%
13.8%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Marginal changes in salary hikes expected for all levels of performance
CONFIDENTIAL 176
Outlook 2012 : Oil & Gas– Middle Level
3.3%5.4%
8.3%10.5%
13.7%
3.3%5.4%
8.2%10.3%
13.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Marginal changes in salary hikes expected for all levels of performance
CONFIDENTIAL 177
Outlook 2012 : Oil & Gas– Senior Level
3.1%5.2%
8.0%10.3%
13.1%
3.0%5.1%
7.9%10.1%
13.0%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Marginal changes in salary hikes expected for all levels of performance
CONFIDENTIAL 178
Oil & Gas– % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Gradual rise in variable pay along with level
9%
12%
15%
0%
4%
8%
12%
16%
20%
24%
28%
J unior Management Middle Management Senior / TopManagement
CONFIDENTIAL 179
Power and Energy
CONFIDENTIAL 180
Outlook 2012 : Power & Energy – Overall
12.00% 11.89%
11.42% 11.54%
10%
11%
12%
13%
14%
15%
Power & Energy Average All Sectors
2011 20112012 2012
Salary hikes in sector expects to drop from average of 12.00% in 2011 to average of 11.42% in 2012
CONFIDENTIAL 181
Increase, 23%
Decrease, 37%
No-Change, 40%
Outlook 2012 : Power & Energy– Overall
23% of the companies are expected to give a higher hike as compared to last year
40% of the companies are expected to maintain the same hike as last year
37% of the companies expected to give a lower hike as compared to last year
CONFIDENTIAL 182
Outlook 2012 : Power & Energy– Junior Level
2.2%4.6%
8.8%
12.2%
16.8%
2.1%4.5%
8.2%
11.5%
16.2%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 183
Outlook 2012 : Power & Energy– Middle Level
2.2%4.6%
8.8%
12.4%
17.0%
2.2%4.5%
8.4%
11.9%
16.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 184
Outlook 2012 : Power & Energy– Senior Level
2.5%5.1%
9.2%
12.8%
17.2%
2.5%4.8%
8.6%
12.3%
16.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 185
Power & Energy– % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Gradual rise in variable pay along with level
9%
14%
19%
0%
4%
8%
12%
16%
20%
24%
28%
J unior Management Middle Management Senior / TopManagement
CONFIDENTIAL 186
Retail
CONFIDENTIAL 187
Outlook 2012 : Retail – Overall
11.25%
11.89%
10.38%
11.54%
10%
11%
12%
13%
14%
15%
Retail Average All Sectors
2011 20112012 2012
Salary hikes in sector expects to drop from average of 11.25% in 2011 to average of 10.38% in 2012
Expected drop in salary hike higher as compared to other sectors
CONFIDENTIAL 188
Increase, 19%
Decrease, 50%
No-Change, 31%
Outlook 2012 : Retail – Overall
19% of the companies are expected to give a higher hike as compared to last year
31% of the companies are expected to maintain the same hike as last year
50% of the companies expected to give a lower hike as compared to last year
CONFIDENTIAL 189
Outlook 2012 : Retail – Junior Level
3.1%5.7%
8.5%
11.5%
15.5%
2.9%4.8%
6.9%
10.2%
14.1%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 190
Outlook 2012 : Retail – Middle Level
3.0%5.5%
8.2%
11.3%
15.2%
2.8%5.0%
7.5%
10.3%
14.3%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 191
Outlook 2012 : Retail – Senior Level
3.0%5.5%
8.2%
11.2%
15.1%
2.7%5.1%
7.3%
10.3%
14.2%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 192
Retail – % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Gradual rise in variable pay along with level
13%
19%
23%
0%
4%
8%
12%
16%
20%
24%
28%
J unior Management Middle Management Senior / TopManagement
CONFIDENTIAL 193
Steel & Basic Metals
CONFIDENTIAL 194
Outlook 2012 : Steel & Basic Metals – Overall
11.00%
11.89%
10.70%
11.54%
10%
11%
12%
13%
14%
15%
Steel & Basic Metals Average All Sectors
2011 20112012 2012
Salary hikes in sector expects to drop from average of 11.00% in 2011 to average of 10.70% in 2012
CONFIDENTIAL 195
Increase, 25%
Decrease, 35%
No-Change, 40%
Outlook 2012 : Steel & Basic Metals – Overall
35% of the companies are expected to give lower hike as compared to last year
40% of the companies are expected to maintain the same hike as last year
25% of the companies expected to give a higher hike as compared to last year
CONFIDENTIAL 196
Outlook 2012 : Steel & Basic Metals – Junior Level
2.5%
6.4%
9.2%
13.3%
17.5%
2.5%
6.3%8.9%
12.9%
17.0%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 197
Outlook 2012 : Steel & Basic Metals – Middle Level
2.5%
6.3%9.0%
13.0%
16.8%
2.5%
6.3%8.6%
12.5%
16.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 198
Outlook 2012 : Steel & Basic Metals – Senior Level
2.4%
6.2%9.0%
13.1%
17.1%
2.3%
6.1%8.7%
12.8%
16.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Lower salary hikes expected for all levels of performance
CONFIDENTIAL 199
Steel & Basic Metals – % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Gradual rise in variable pay along with level
10%
14%
18%
0%
4%
8%
12%
16%
20%
24%
28%
J unior Management Middle Management Senior / TopManagement
CONFIDENTIAL 200
Telecommunications
CONFIDENTIAL 201
Outlook 2012 : Telecommunication – Overall
11.82% 11.89%
10.16%
11.54%
10%
11%
12%
13%
14%
15%
Logistics Average All Sectors
2011 20112012
2012
Salary hikes in sector expects to drop significantly from average of 11.82% in 2011 to average of 10.16% in 2012
Drop in expected salary hikes much higher as compared to other sectors
CONFIDENTIAL 202
Increase, 20%
Decrease, 58%
No-Change, 22%
Outlook 2012 : Telecommunication– Overall
58% of the companies are expected to give lower hike as compared to 2011
22% of the companies are expected to maintain the same hike as last year
20% of the companies expected to give a higher hike as compared to last year
CONFIDENTIAL 203
Outlook 2012 : Telecommunication– Junior Level
1.1%
4.8%
10.2%
13.7%
17.1%
0.9%3.3%
8.0%
12.5%
15.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Significantly lower salary hikes expected for all levels of performance
Meager salary hikes for bottom 2 levels of performance
CONFIDENTIAL 204
Outlook 2012 : Telecommunication– Middle Level
1.5%
4.6%
10.0%
13.4%
16.9%
0.8%3.2%
8.5%
12.4%
15.6%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Significantly lower salary hikes expected for all levels of performance
Meager salary hikes for bottom 2 levels of performance
CONFIDENTIAL 205
Outlook 2012 : Telecommunication– Senior Level
1.0%
4.1%
9.8%
13.3%
16.5%
0.8%3.0%
8.0%
12.5%
15.5%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Significantly lower salary hikes expected for all levels of performance
Meager salary hikes for bottom 2 levels of performance
CONFIDENTIAL 206
Telecommunication– % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Gradual rise in variable pay along with level
14%
19%22%
0%
4%
8%
12%
16%
20%
24%
28%
J unior Management Middle Management Senior / TopManagement
CONFIDENTIAL 207
Textiles / Garments / Apparel
CONFIDENTIAL 208
Outlook 2012 : Textiles/Garments/ Apparel – Overall
10.88%
11.89%
10.78%
11.54%
10%
11%
12%
13%
14%
15%
Textiles / Garments /Apparel
Average All Sectors
2011 20112012 2012
Salary hikes in sector expects to marginally drop from average of 10.88% in 2011 to average of 10.78% in 2012
CONFIDENTIAL 209
Increase, 31%
Decrease, 31%
No-Change, 38%
Outlook 2012 : Textiles/Garments/ Apparel– Overall
31% of the companies are expected to give a higher hike as compared to last year
38% of the companies are expected to maintain the same hike as last year
31% of the companies expected to give a lower hike as compared to last year
CONFIDENTIAL 210
Outlook 2012 : Textiles/Garments/ Apparel– Junior Level
3.7%6.1%
8.4%10.0%
13.2%
3.8%6.0%
8.5%10.1%
13.0%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Marginal changes in salary hikes expected for all levels of performance
CONFIDENTIAL 211
Outlook 2012 : Textiles/Garments/ Apparel– Middle Level
3.6%6.0%
8.2%9.8%
13.0%
3.5%5.9%
8.2%9.7%
12.8%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Marginal changes in salary hikes expected for all levels of performance
CONFIDENTIAL 212
Outlook 2012 : Textiles/Garments/ Apparel– Senior Level
3.7%6.2%
8.6%10.3%
14.0%
3.7%6.1%
8.5%10.3%
13.9%
0%
4%
8%
12%
16%
20%
WeakestPerformer
WeakPerformer
AveragePerformer
GoodPerformer
HighestPerformer
2011 2012
Marginal changes in salary hikes expected for all levels of performance
CONFIDENTIAL 213
Textiles/Garments/ Apparel– % of Variable Compensation
Variable compensation as % of total cost to company (excluding sales based incentives) Lower variable compensation at Junior level Gradual rise in variable pay along with level
15%18%
23%
0%
4%
8%
12%
16%
20%
24%
28%
J unior Management Middle Management Senior / TopManagement
