Sunday, 14 September 2008

Beat the Crisis

We are all aware of the current global economic slowdown, resulting to a large part from the sub-prime crisis in the US. This is resulting in rising inflation in many countries.

India Inc is taking a fresh look at their HR/pay policies, aiming to increase productivity and redeploy their manpower. Though, many companies have factored in the economic turmoil in their budgets for 2009, the average salary projections for the coming year are lower by only a percentage point at 13.9%. Despite the increased pressure, the year 2008 saw a strong salary increase of 14.8% according to a study by HR consultancy firm, Hewitt Associates.

According to the survey across 150 companies, only 20% are resorting to a slowdown in hiring or a complete freeze. The majority - 57% - are looking to balance the effect of inflation and lower HR budgets by increasing productivity.

Many companies (30%) are also introducing performance linked pay to ensure increased pay is backed by improved performance.

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