Increment In Indian offices of MNC’s
Its have been many years when many of MNC’s entered in Indian market. But from past 2-3 years there operation cost in India is increasing at a very high rate. And they are now started saying Indian software professional are asking for more salaries and it’s difficult for them to fulfill their needs. But due to market rate and offers from other companies they have to give them appropriate compensation. But then they have to normalize this during their increment.
Some of the companies are giving increment of only 8-10% or 12-15%. They are giving the excuse that this increment factor is decided globally by the company and it’s not only for Indian employees.
But I couldn’t digest such kind of things told by HR to their employees. My question is where this concept of global compensation some years ago was when Indian software industry was in slump. That time they use to exploit the employees by offering them very less salary on global scale of their own company. And people have to except that because they don’t have much option that time. But now they have more that 1 offer to choose best out of lot.
Now what I can recall is 6 years ago if a person touches a 5 digit salary per month then he was considered as well salaried person. But then BPO industry starts picking up and starts paying college graduate a handful salaries of around 15-20k. Indian software industry was also picking up that time, so they also started paying higher salaries.
Then these companies start competing within themselves by offering better pay to attract employees to their companies and to meet the market rate. I think that was the worst they had done that time, for which they have to pay now. Now everybody is demanding a higher salary as every 2nd company is ready to pay good amount.
But when they give less increment ESPECIALLY PRODUCT BASED COMPANIES then the satisfaction level of employees will go automatically because his other colleagues are getting much better then what he is getting there. These companies are considering their operational cost and economy growth of the countries in which they have their head office, which is correct as a business point of view but not good if you want to sustain in market for long time.
Now if we look at Indian economy, it is growing at a rate of 9% but inflation is also increasing at a office rate of almost 7% which is effectively 10-12% for common man. In budget taxes also increases like this year education tax is increases by 1%. This is not just 1% but as it is applicable to all the service tax also so it add 2-3% of burden on common man. Property prices are increasing at very fast rate, so does the prices of rental house. Other factors like petrol prices and new tolls of various roads our annual expenditure is increasing by around 16-18%.
So if a company offers you 10% of increment then I think that is not sufficient for the increasing prices. At the end you will be having more expenditure and less of saving then the last year. And most important is you have to bear with these prices for the whole next year till your next increment comes. That means employees are actually gone through a negative increment process in there salaries.
Companies have came to India for many factors, whatsoever they may be but now whatever they have done some years ago they have to pay for that now and they cannot neglect the factors which are effecting most of the employees working in their Indian offices.
Some of the companies are giving increment of only 8-10% or 12-15%. They are giving the excuse that this increment factor is decided globally by the company and it’s not only for Indian employees.
But I couldn’t digest such kind of things told by HR to their employees. My question is where this concept of global compensation some years ago was when Indian software industry was in slump. That time they use to exploit the employees by offering them very less salary on global scale of their own company. And people have to except that because they don’t have much option that time. But now they have more that 1 offer to choose best out of lot.
Now what I can recall is 6 years ago if a person touches a 5 digit salary per month then he was considered as well salaried person. But then BPO industry starts picking up and starts paying college graduate a handful salaries of around 15-20k. Indian software industry was also picking up that time, so they also started paying higher salaries.
Then these companies start competing within themselves by offering better pay to attract employees to their companies and to meet the market rate. I think that was the worst they had done that time, for which they have to pay now. Now everybody is demanding a higher salary as every 2nd company is ready to pay good amount.
But when they give less increment ESPECIALLY PRODUCT BASED COMPANIES then the satisfaction level of employees will go automatically because his other colleagues are getting much better then what he is getting there. These companies are considering their operational cost and economy growth of the countries in which they have their head office, which is correct as a business point of view but not good if you want to sustain in market for long time.
Now if we look at Indian economy, it is growing at a rate of 9% but inflation is also increasing at a office rate of almost 7% which is effectively 10-12% for common man. In budget taxes also increases like this year education tax is increases by 1%. This is not just 1% but as it is applicable to all the service tax also so it add 2-3% of burden on common man. Property prices are increasing at very fast rate, so does the prices of rental house. Other factors like petrol prices and new tolls of various roads our annual expenditure is increasing by around 16-18%.
So if a company offers you 10% of increment then I think that is not sufficient for the increasing prices. At the end you will be having more expenditure and less of saving then the last year. And most important is you have to bear with these prices for the whole next year till your next increment comes. That means employees are actually gone through a negative increment process in there salaries.
Companies have came to India for many factors, whatsoever they may be but now whatever they have done some years ago they have to pay for that now and they cannot neglect the factors which are effecting most of the employees working in their Indian offices.
posted by Gaurav Bahl @ 5:49 AM
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