In HC Deloitte India Annual Compensation Trends Survey Report Fy 2016 Noexp PDF

Annual
Compensation & Benefits

Trends Survey
India
FY 2015-16
Human Capital Consulting
April 2015
To receive sector-wise analysis, please visit contact us

section at the end of this report
Table of Contents
Scope,
approach
and
methodology
Executive
summary
Overall
industry
report
Sector-wise
analysis
About
Deloitte
Human
Capital
Consulting
Scope, approach &

methodology
Scope, approach and methodology

Scope of the survey
The Deloitte India Compensation Trends Survey is an annual study conducted by
Human Capital Consulting. The objective of the study is to understand the key
compensation and benefits trends across sectors in the Indian market.
Increment &
variable Pay
projections for
FY 2016 and
comparison
with FY 2015
Attrition
rates, key
levers for
mitigation
and talent
attraction
Key benefits
given across
sectors
250
18
Organizations
Sectors
2015 Deloitte Touche Tohmatsu India Private Limited
Managing
and
rewarding
critical
talent

Survey methodology
Design the survey

instrument
The parameters of the
study were finalized and
a structured
questionnaire was
designed as a primary
data collection tool
Finalize the target

basket
The sectors covered in
the study were finalized
along with the leading
organizations from each
sector
Collect and validate data

The responses received
from all participants were
validated and checked for
accuracy and intended
interpretation
Invite participation
A formal invitation e-mail
and online questionnaire
was sent to the Human
Resources teams in the
chosen organizations
requesting for participation
Analyze data
The data received was
collated and analyzed to
get detailed insights on
sector wise practices,
compensation and benefits
trends
Generate the
Compensation Trends
Survey Report (FY 201516)

Definitions
The most senior executive in the organization (CEO), coordinating a
full range of functions, providing leadership, overall direction and
Top
Management control of company operations. Also, includes key executives
(direct reportees to CEO) within the organization, heading key
functions, businesses and geographies
Executives who directly report to the Top Management, and manage

Senior
a range of functions. However, they are not regarded as Top
Management Management. This also includes direct reportees to different key
functional, business and geographical heads
Middle
Management
Includes executives who directly report to Senior Management,

with supervisory responsibility for a sub-function, part of a
business, geography etc.
Junior
Management
Includes supervisory staff usually involved in the day to day

functioning of a small team (First Level of Management Cadre).
Also, includes entry level employees with professional qualification
Clerical
Includes non-management staff who work as individual contributors

reporting to Management
Percentile definitions
10P/
25P/
50P/
75P/
90P/
The lower decile position (where

one-tenth of the sample has lower
data)
The lower quartile position (where
one quarter of the sample has lower
data)
The middle position (where half of
the sample has lower and half has
higher data)
The upper quartile position (where
three-quarters of the sample has
lower data)
The upper decile position (where

nine-tenth of the sample has lower
data)

15.2% (38)
Participant profile
12.0% (30)
10.0% (25)
8.0% (20)
8.0% (20)
7.2 % (18)
6.0% (15) 6.0% (15)
6.0% (15)
4.8% (12)
4.8% (12)
4.8% (12)
4.0% (10)
3.2% (8)
Auto & auto

Comp.
BFSI
Chemical
Consumer
business
Energy
Engineering &
manufacturing
Hi-Tech
ITeS
Infrastructure
& real estate
Logistics
Media &
advertising
Pharma, life
sciences
Retail
Others**
250 organizations from 18 sectors have participated in the Compensation Trends Survey for FY 2016
2.4%
< 500
6.0%
1.6%
9.2%
<100 Crore
13.6%
100-300 Crore
Annual
revenue
500 - 2000
28.8%
16.8%
2000 - 5000
46.0%
300-500 Crore
5000 - 10000
32.8%
500-1000 Crore
>1000 Crore
Employee
strength
10000 - 25000
22.4%
20.4%
> 25000
(38)
** Others include companies in Hospitality, Professional Services,
Agriculture, Aviation, Export and Social Services sectors. Considering the limited number of responses
from these sectors within the specified timelines, separate sector reports have not been published
Executive summary
Executive summary
Key findings
Increment
The average salary increment across sectors is projected at 10.7% in FY
2016, which is 0.4% points higher than the previous FY 2015 (10.3%)
The highest projected

average increment is in
the Pharma sector at
12.1%, and the lowest
projection is observed in
the Retail sector at 9.4%
Variable pay
increments across
industries are at the
Junior Management
level at 11.0%
The average variable pay across sectors is projected at 17.4% in

FY 2016, which is 0.4% points higher than the previous FY 2015
(17.0%)
Voluntary attrition
In FY 2015 highest attrition across industries was seen in the ITeS
sector (21.9%) whereas the lowest attrition was seen in the Energy &
natural resources sector (10.5%)
Reasons for attrition

Better pay, better career opportunities and need for work life balance
have emerged as top reasons for attrition across industries
Top compensation levers for retention

Long term incentive plans, strong performance based variable pay,
and monetary / non monetary recognition awards are the three most
widely used compensation levers for employee retention

average variable pay is
in the BFSI sector at
19.4%, and the lowest
projection is observed in
the Logistics sector at
15.6%
The Consumer Business
sector shows
conservative projections
towards increments
along with an increased
focus towards variable
pay
Executive summary
Industry snapshot
In %
Average variable pay
Average increments
Sectors
Actual
Projected
Change
Projected
Rank
16.5
16.7
0.20
0.30
11
19.4
20.1
0.70
0.40
16.3
16.5
0.20
Actual
Projected
Change
Auto and auto components
10.2
10.4
0.20
BFSI
9.7
10.0
Chemical
11.0
11.4
Projected
Rank
Consumer business
10.9
10.8
-0.10
19.2
19.6
0.40
Energy & natural resources
10.1
10.3
0.20
10
15.9
16.2
0.30
11
Engineering & manufacturing
10.4
10.6
0.20
16.7
17.0
0.30
Hi-Tech
10.6
10.9
0.30
17.2
17.6
0.40
ITeS
10.6
10.8
0.20
17.1
17.5
0.40
Infrastructure & real estate
10.2
12.0
1.80
17.6
18.2
0.60
Logistics
9.6
9.8
0.20
12
15.3
15.6
0.30
13
Media & advertising
10.0
10.9
0.90
15.7
16.1
0.40
12
Pharma, life sciences & healthcare
12.0
12.1
0.10
18.3
18.7
0.40
Retail
9.5
9.4
-0.10
13
16.0
16.3
0.30
10
Overall industry
10.3
10.7
0.40
17.0
17.4
0.40
Actual
indicates
actual
figures for
FY 2014-15
Projected
Indicates
projected
figures for
FY 2015-16
10
Overall industry
report
Overall industry analysis

Average annual increments FY 2016 (projections) vis--vis FY 2015 (Actuals)
In %
10.3
10.2
9.7
11.0
10.9
10.1
10.4
10.6
10.6
10.2
9.6
10.0
12.0
9.5
(Actuals)
FY 2015
FY 2016
10.7
10.4
10.0
11.4
10.8
10.3
10.6
10.9
10.8
12.0
9.8
14.0
10.9
FY 2015
12.1
9.4
FY 2016
12.0
10.0
8.0
6.0
4.0
2.0
0.0
Overall
Industry
Auto
BFSI
Chem
Consumer business and

Retail sectors show a
decrease in projected
increments for FY 2016
vis--vis last FY
CB
Energy
Engg
Hi-Tech
Infrastructure and real

estate has the maximum
increase in projected
average increments over
previous FY
ITeS
Infra
Log
Media
Pharma
Retail
In Pharma, Media, Hi-Tech

and ITeS sectors, the
projected increments are
significantly higher than
Industry average whereas
Logistics and Retail have
lower than industry average
increment projections
12

Average annual increments FY 2016 (projections) vis--vis FY 2015
In %
10P
50P
90P
Average
FY 2015
6.7
10.2
14.0
10.3
FY 2016
6.9
10.6
14.4
10.7
Average increments across levels
Level-wise increment percentiles (FY 2016)
In %
In %
10P
50P
90P
Avg
11.2
11.0
Clerical
7.4
10.7
14.2
10.8
11.0
10.8
10.8
10.6
10.6
JM
7.6
11.1
14.5
11.0
MM
7.3
10.6
14.1
10.6
10.4
10.3
10.0
10.1
10.0
9.8
SM
7.1
10.5
13.8
10.5
10.4
10.6
10.4
10.2
10.5
9.6
9.4
TM
7.0
10.5
13.8
10.4
Clerical
JM
MM
FY 2016
SM
TM
FY 2015
13

Annual increments FY 2016 (projections)
Comparison of level-wise average increments across sectors
11.1
10.4
10.2
10.5
10.2
10.6
10.4
9.6
11.3
9.9
11.0
10.8
10.5
10.8
10.5
10.1
Overall
Industry
Auto
BFSI
11.9
11.6
11.5
10.5
9.6
11.1
In %
10.3
10.1
10.6
10.6
10.5
11.6
10.5
10.7
10.3
10.5
10.1
10.3
10.6
9.4
11.7
TM
9.5
10.8
11.8
10.7
9.7
12.5
10.8
11.9
11.3
12.5
10.8
11.3
11.2
11.4
10.8
10.7
10.4
10.9
10.9
12.1
9.8
11.0
12.2
Chem
CB
Eng
Energy
Hi-Tech
ITeS
Infra
Log
Media
Pharma
The average increments at

all levels in Pharma,
Infrastructure and
Chemicals sectors are
significantly higher than the
respective level-wise
industry average
SM
MM
11.0
10.3
9.2
9.3
11.2
The average increment

projections at Top, Senior
and Middle management
level are lower than the
projected Industry
average at 10.7%
9.1
10.6
10.6
JM
CL
9.8
9.4
Retail
The average increments at

all levels in BFSI, Logistics
and Retail are lower than
industry average
14

Average annual variable pay FY 2016 (projections) vis--vis FY 2015
17.0
16.5
19.4
16.3
19.2
15.9
16.7
17.2
17.1
17.6
15.3
15.7
18.3
(Actuals)
FY 2015
FY 2016
17.4
16.7
20.1
16.5
19.6
16.2
17.0
17.6
17.5
18.2
15.6
25.0
16.1
FY 2015
18.7
In %
16.0
16.3
FY 2016
20.0
15.0
10.0
5.0
0.0
Overall
Industry
Auto
BFSI
Chem
BFSI and Infrastructure

and real estate have the
maximum increase in
projected average variable
pay over previous FY
CB
Energy
Engg
Hi-Tech
Logistics and Media have

projected lower than
average industry average
variable pay
ITeS
Infra
Log
Media
Pharma
Retail
In BFSI, Pharma and

consumer business, the
projected average variable
pay are significantly higher
than Industry average
15

Average annual variable pay FY 2016 (projections) vis--vis FY 2015
In %
10P
50P
90P
Average
FY 2015
5.6
17.1
34.8
17.0
FY 2016
5.9
17.6
35.3
17.4
Level-wise variable pay percentiles (FY 2016)
In %
10P
50P
90P
Average variable pay across levels
Avg
26.0
24.2
24.0
Clerical
5.6
10.3
18.2
10.4
JM
7.5
13.6
23.6
13.5
In %
22.1
23.7
22.0
21.7
20.0
17.5
18.0
MM
10.2
17.6
29.4
17.5
16.0
17.2
13.5
14.0
SM
14.8
22.1
34.5
22.1
12.0
10.2
10.0
TM
16.5
24.3
38.1
24.2
13.1
10.4
Clerical
JM
MM
FY 2016
SM
TM
FY 2015
16

Annual variable pay FY 2016 (projections)
Comparison of level-wise average increments across sectors
27.4
24.2
23.3
26.8
21.4
21.8
21.2
16.5
24.3
20.9
14.9
22.4
17.5
22.3
17.5
25.6
24.9
22.8
19.3
16.4
15.2
24.4
24.6
19.8
17.5
23.7
23.1
25.3
22.1
In %
22.5
22.6
20.2
20.8
TM
23.6
23.0
18.0
16.8
16.2
12.9
12.3
13.7
13.6
14.1
22.8
SM
21.0
18.4
JM
16.1
15.6
16.2
11.6
12.2
13.9
12.4
13.5
12.7
10.4
9.7
11.9
9.5
11.8
9.9
9.2
10.6
10.5
10.9
8.6
9.1
10.7
9.3
Overall
Industry
Auto
BFSI
Chem
CB
Eng
Energy
Hi-Tech
ITeS
Infra
Log
Media
Pharma
Retail
12.6
The average variable pay

projections at Clerical and
Junior management level
are lower than the
projected Industry
average at 17.4%
The average variable pay

projections at all levels in
BFSI and Consumer
Business sectors are
significantly higher than the
industry average
MM
CL
The average projected

variable pay at all levels in
Logistics, Media and
Energy is lower than
industry average
17

Key benefits
Car policy car value
In %
Clerical
JM
MM
SM
TM
3 - 5 Lacs
20.9
11.9
5 - 8 Lacs
34.5
24.3
19.6
8 -12 Lacs
12.3
29.8
47.7
34.0
> 12 Lacs
16.2
32.8
66.0
N/A
32.3
17.9
Insurance policy
72.8 percent of the companies have life insurance
policy
79.6 percent of the companies have accident insurance
policy
100.0 percent of the companies have medical insurance
policy
Medical insurance coverage
Employee only
15.7%
Employee & spouse
37.9%
17.4%
Car policy fuel per annum

Employee, spouse and dependent children
In %
Clerical
JM
MM
SM
TM
5000 - 8000
14.5
8000 -12000
24.3
16.6
15.3
12000 - 15000
25.5
33.2
23.0
13.6
> 15000
35.7
50.2
48.9
38.3
On Actuals
12.8
48.1
N/A
14.5
68.0
percent of the companies have company leased

and rest have company owned car option
4-5
years is the average car replacement period
Leave encashment policy

39.1 percent of the companies allow leave encashment
during tenure and after separation
60.9 percent of the companies allow leave encashment

only after separation
Employee, spouse, dependent children and

dependent parents/ inlaws
28.9%
Gratuity and superannuation policy

41.7 percent of the companies have superannuation
policy
60.2 percent of these companies manage
superannuation fund in-house and rest through
third party
68.1 percent of the companies manage gratuity fund
in-house and rest through third party
Long term incentive plan
46.4
percent of the companies have LTI plan
55.0
percent of these companies extend LTI plans

across all levels and rest at select management
levels
18

Voluntary attrition analysis
Voluntary attrition rate across sectors
FY 2014
16.2
11.4
18.7
10.6
18.4
10.9
10.4
19.4
21.5
17.5
16.6
17.2
18.2
In %
18.9
FY 2015
16.5
11.6
18.9
10.7
18.7
11.1
10.5
19.9
21.9
17.8
16.8
17.5
18.6
19.4
25
FY 2014
FY 2015
20
15
10
0
Overall
Industry
Auto
BFSI
Chem
CB
Eng
Energy
Hi-Tech
Comparison of level-wise voluntary attrition rate across sectors

4.6
5.1
3.3
4.8
9.8
2.5
10.4
17.2
2.6
7.5
Overall
Industry
22.2
Auto
28.4
1.6
Chem
CB
Log
Media
Pharma
3.9
4.9
2.3
2.7
3.1
4.5
4.9
5.5
10.3
10.8
10.2
21.5
21.2
21.1
24
21
Retail
In %
10.1
20.9
2.2
7.3
4.2
6.6
10.7
TM
23.1
17.5
15.2
Eng
Energy
SM
MM
JM
11.4
26.3
16
BFSI
9.3
14.3
13.3
24.8
11.2
2.8
4.1
20.6
Infra
4.9
6.1
10.6
1.8
21.2
19.3
4.1
5.8
10.3
3.1
8.2
4.8
5.8
ITeS
CL
29.8
32.3
28.1
24.6
25.8
26.1
29.2
Hi-Tech
ITeS
Infra
Log
Media
Pharma
Retail
19

Attrition trends reasons and mitigation measures
Better pay elsewhere
Top three
reasons for
attrition
Better career opportunities
Better work life balance
3
Long term incentive plans
1
2
3
Top three
compensation
levers for
talent
attraction
Performance based variable pay
Recognition awards (cash/non-cash)
Sign on bonuses
Attractive benefits offerings
levers for
talent retention
Guaranteed incentives / variable pay
Top three
compensation
2
3
20
About Deloitte Human

Capital Consulting
About Deloitte
Human Capital Consulting
Deloitte Consultings Human Capital practice is a leading global advisor and implementation partner working with companies, governments,
and organizations around the world. Our goal is to improve our clients organizational results and impact by focusing on challenges at the
intersection of business and people.
Our global network of more than 5,000 Human Capital professionals serves 100 countries. The scale of our global Human Capital partner
and practitioner network allows us to provide global and national clients with a network, which can respond quickly, flexibly, and at scale to
meet client challenges. Our practice goes to market applying deep industry experience and globally recognized HR, talent, and organization
transformation skills and capabilities. We offer a focused combination of breadth and expertise across HR service lines.
Our India offerings:

HR
Transformation
Organization Transformation,
Talent & Rewards
Strategic Change
HR Transformation Strategy and Planning
Culture
HR Technology Strategy
Leadership Development
HR Service Delivery:
HR Shared Services
High Impact HR Operating Model
Outsourcing Advisory
Organization Design
Technology Adoption
Talent Strategies:
Career Development and Succession
Diversity and Inclusion
Performance, Engagement, and Retention
Talent Sourcing
Talent Strategies for Growth Markets
Learning Solutions
Sales Force Effectiveness
Rewards
Job Evaluation
Structuring & Benchmarking
Incentive Plan Design
HR Technologies:
Oracle - EBS, HCM Cloud, PeopleSoft and Taleo
SAP / SuccessFactors
Salesforce.com
Workday
Cornerstone
HR Technology Other
Workforce Analytics
India Operations Setup:
India Operations HR Setup
Location Feasibility Study
Rules And Regulations
Employment Contract
Mergers, Acquisitions and Restructuring

22
Contact us
Dr. Vishalli Dongrie, Sr. Director, Human Capital Consulting

Tel/Direct: +91 (22) 6185 4280
Mobile: +91 98 3397 3458 l E-mail: vdongrie@deloitte.com
For sector specific reports and technical queries, please reach

out to:
Saptarshi Chatterjee, Senior Manager, Human Capital Consulting
Tel/Direct: +91 (22) 6185 4280
Mobile: +91 98 1995 1648 l E-mail: sapchatterjee@deloitte.com
Mandar Ranade, Senior Consultant, Human Capital Consulting

Tel/Direct: +91 (22) 6185 4280
Mobile: +91 98 3369 1813 l E-mail: mranade@deloitte.com
Malvika Sharma, Consultant, Human Capital Consulting

Tel/Direct: +91 (22) 6185 4280
Mobile: +91 98 1991 2990 l E-mail: malvikas@deloitte.com
23
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (DTTL), its network of member firms, and
their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as Deloitte Global) does not
provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.
This survey is a general survey carried out by Deloitte Touche Tohmatsu India Private Limited (DTTIPL) and data or information provided by you will be used
in connection with this survey, other studies or analyses performed by DTTIPL. This survey and the survey results are the proprietary property of DTTIPL and
will be disclosed only if required by law or in connection with this survey or such studies, analyses or services, however the data or information provided would
not contain any information that identifies you or associates with you the responses you have provided.
None of DTTIPL or its affiliate entities (Deloitte Network) are by means of this survey or the survey results, rendering professional advice or services. Neither
this survey nor the survey results is a substitute for any kind of professional advice or services. The Deloitte network is not responsible for any loss
whatsoever sustained by any person who relies on this survey or the survey results.
2015 Deloitte Touche Tohmatsu India Private Limited. Member of Deloitte Touche Tohmatsu Limited

In HC Deloitte India Annual Compensation Trends Survey Report Fy 2016 Noexp PDF

Enviado por

Dados do documento

Descrição original:

Título original

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

In HC Deloitte India Annual Compensation Trends Survey Report Fy 2016 Noexp PDF

Enviado por

Direitos autorais:

Formatos disponíveis

Annual

Compensation & Benefits

To receive sector-wise analysis, please visit contact us

Scope, approach &

Scope, approach and methodology

2015 Deloitte Touche Tohmatsu India Private Limited

Scope, approach and methodology

Design the survey

Finalize the target

2015 Deloitte Touche Tohmatsu India Private Limited

Collect and validate data

Scope, approach and methodology

Executives who directly report to the Top Management, and manage

Includes executives who directly report to Senior Management,

Includes supervisory staff usually involved in the day to day

Includes non-management staff who work as individual contributors

2015 Deloitte Touche Tohmatsu India Private Limited

The lower decile position (where

The upper decile position (where

Scope, approach and methodology

6.0% (15) 6.0% (15)

Auto & auto

** Others include companies in Hospitality, Professional Services,

The highest projected

The average variable pay across sectors is projected at 17.4% in

Reasons for attrition

Top compensation levers for retention

The highest projected

Average variable pay

Auto and auto components

Energy & natural resources

Engineering & manufacturing

Infrastructure & real estate

Media & advertising

Pharma, life sciences & healthcare

2015 Deloitte Touche Tohmatsu India Private Limited

Overall industry analysis

Consumer business and

2015 Deloitte Touche Tohmatsu India Private Limited

Infrastructure and real

In Pharma, Media, Hi-Tech

Overall industry analysis

Average increments across levels

Level-wise increment percentiles (FY 2016)

2015 Deloitte Touche Tohmatsu India Private Limited

Overall industry analysis

2015 Deloitte Touche Tohmatsu India Private Limited

The average increments at

The average increment

The average increments at

Overall industry analysis

BFSI and Infrastructure

2015 Deloitte Touche Tohmatsu India Private Limited

Logistics and Media have

In BFSI, Pharma and

Overall industry analysis

Level-wise variable pay percentiles (FY 2016)

Average variable pay across levels

2015 Deloitte Touche Tohmatsu India Private Limited

Overall industry analysis

The average variable pay

2015 Deloitte Touche Tohmatsu India Private Limited