The Annual Salary review exercise is round the corner in most organisations. Employee expectations is on a high. Most major HR Consulting organisations and Job Portals are predicting a double digit Salary Increment in the range of around 10-11%.
Is there a science behind it and any justification for the same. The inflation both WPI and CPI are in single digits and at all time low. The economy is growing flat. The world economy is hardly growing. Crude oil prices are at a all time low. The worlds largest economy China is shrinking and has recorded the lowest GDP growth in about a decade.
What then warrants a double digit Salary Increase for Indian employees. Is it sheer greed or the need to stay ahead of competition. How long can India sustain this bull run and when will the Corporate Honcho’s start reigning the salaries.
If un-attended or un-addressed, India will soon outprice itself and sieze to be a destination of choice for FDI especially in the Service (Outsourcing) Industry. Lower cost was one of the reasons why the Mature economies turned to India and was one of the primary competitive advantage.
But are we getting to greedy and avaricious and likely to lose our competitive advantage…….