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HR Download - Global HR practices
The new financial year is round the corner and everyone is looking forward to better compensation whether it comes to salaries or perks. Many are expecting a promotion whereas others a hike in their figure. With the economy shaping up, everyone has a reason to smile including the staff and the HR managers
Road to recession
Rajeshwar Tripathi, Executive Vice President - HR, Farm Equipment Mahindra & Mahindra says, “We were a little conservative when it came to increasing salaries last year, however, we did not slash them down. There was only an 8 to 10 per cent increase in salaries given. We concentrated more on cost cutting instead of reducing compensation. We tightened our belts when it came to overheads, travel allowances; even hiring was reduced.”
While some industries pulled up their socks when it came to reduction in overheads, others went ahead with salary cuts and lay offs. Meghna Dixit Likhi, Vice President - HR, Maya Entertainment Limited says, “Last year, we employed a lot of tactical methods which included pay cuts. However, as soon as we saw signs of recovery, first thing we gave the salaries to what they were so the employees feel appreciated and appraised already. The money that was cut was given back in their salaries within a period of six months.”
Road to recovery
Employee expectations are on the rise. The staff is expecting better prospects and a definite increase in pay packages. But what’s on the cards? “I expect the industry to be much more buoyant. We will keep pace with the mark to market philosophy in compensation. Last year, the industry was conservative, yet we remained competitive. General indications of the automotive sector, I see an increase anywhere between 10 to 15 per cent,” says Tripathi.
While the trend in salary increase will prevail, there are other methods and changes that HR managers are intending to bring about. “We are linking appraisal system to the performance, it’s completely performance linked incentive. A lot more importance is given to the performance. At the same time, we are cautious about overhead recruitment and every person is hired only if there is an absolute need,” says Likhi.
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