Increment Strategy ppt 2012-13 : Play this in slide show mode


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This is the Presentation which I had given to Top Management to convince my Increment Strategy.

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Increment Strategy ppt 2012-13 : Play this in slide show mode

  1. 1. Broad Outlook—Indian Economy FY 2012-13  GDP Growth rate April 2011 to March 2012 : 6.28% April 2012 to March 2013 : 5%  Index of Industrial Production Growth April 2011 to March 2012 : 3% April 2012 to March 2013 : 1.16%  Growth of Mining & Metal April 2011 to March 2012 : - 2.01% April 2012 to March 2013 : - 2.33%  FDI 2012-13 USD 22.42 billion versus USD 35.12 billion in FY 2011-12 (i.e. -38%)  Inflation (Consumer Price Index) April 2011 to March 2012 : 8.40% April 2012 to March 2013 : 10.44%
  2. 2. The top 10 business risks for Mining and Metals 1. Resource nationalism 2. Skills shortage 3. Infrastructure access 4. Cost inflation 5. Capital project execution 6. Maintaining a social license to operate 7. Price and currency volatility 8. Capital management and access 9. Sharing the benefits 10. Fraud and corruption
  3. 3. Overall Industry Analysis : FY 2012-13 • India has strong growth fundamentals but faces challenges in the form of a volatile global market coupled with issues of fiscal consolidation and inflation. Upside risks to inflation expected from fiscal slippage, currency depreciation and commodity shocks • Policymakers struggled to strike a balance between inflation and growth. Domestic growth rate was impacted by tightening of the monetary policy by RBI and geopolitical concerns • The Indian economy faced twin macroeconomic challenges of managing growth and containing inflation during the fiscal 2012-13 against a backdrop of an uncertain global environment • In response to global economic issues such as Eurozone crisis and rising commodity prices, fiscal year 2012 - 2013 saw the Indian economy slow down • The budget pegged Gross Domestic Product (GDP) for the year 2012-13 was at 7.6% while it is actually 5% • The Wholesale Price Index (WPI) inflation for all commodities for the period of April 2012 to March 2013 was 7.3% • Inflation in Consumer Price Index was 10.44 % in 2012-2013 • A slowing global economy continues to have an impact on the Indian Economy. According to the RBI, the world economy may observe a decline in its growth trajectory although it is not slated for another recession
  4. 4. Industrial Growth Rate trends
  5. 5. Industrial Growth – Overall & Broad Sectors
  6. 6. Momentum of IIP (Manufacturing) Gross capital formation (GCF) in the industrial sector comprising mining, manufacturing, electricity and construction recorded an average growth of 13.2 per cent during 2012-13.
  7. 7. Job Projection 2013-14 Job growth is occurring across most sectors and the employment outlook for 2013- 2014 is encouraging. Our annual employment survey reveals 58% of employers anticipate an increase in staff numbers over the next 12 months. This positive outlook in recruitment has been driven by global companies looking at India as a core growth market given the ongoing uncertainties in the US and European economies. India is regarded as a logical business hub with a well qualified young workforce and the required infrastructure to support international business activities. Predicted Employment for 2013-14 Increase Decrease Stable
  8. 8. Salary /Increment Survey Highlights FY 2012-13 • Overall median salary increase across sectors is 12% • Manufacturing industry including Mining, Steel and Cement have reported highest increment figures for 2012 - 2013 at 15% • Financial Services sector has been most conservative in increment projection for 2012 2013 at 10% • The overall attrition across industries is 13%. Better Pay and Personal Reasons have been rated as the key reasons for attrition industry-wide • Hiring and Retaining skilled talent continues to remain a key challenge in the market • Sectors which have registered highest attrition are ITeS, Pharmaceuticals, Healthcare & Life Sciences and Media & Advertising and the sectors which have registered lowest attrition are Manufacturing and Energy & Resources • Organizations are also keenly adopting cost optimization measures. Offshoring / Outsourcing of activities have been rated highest amongst measures adopted. • Interestingly employers are not keen on reducing spend on “Recognition Programs” or “Training programs”
  9. 9. Salary Increment Scenario  India Inc is increasing employee salaries by a modest 6-13 per cent this year. In sectors such as IT and telecom, which are facing a bad year, the wage hike is being pegged at around 7-8 per cent, while companies in recession-free sectors, such as the Mining, pharmaceutical industry, are offering increases of 12-13 per cent.
  10. 10. Annual Increment Trends Overall Industry Analysis Increments are expected to be conservative, attributable to the overall economic conditions Year 2011-12 2012-13 2013-14 Average Increment 13.00% 12.00% 11.30% Average Increment 13.50% 13.00% 12.50% 12.00% 11.50% 11.00% 10.50% 10.00% Average Increment 2011-12 2012-13 2013-14 Mining and Manufacturing Increment Analysis Average Increment Year 2011-12 2012-13 2013-14 Average Increment 12.30% 15.00% 11.20% 20.00% 15.00% 10.00% Average Increment 5.00% 0.00% 2011-12 2012-13 2013-14
  11. 11. Overall Industry Analysis Annual Increment • Annual median increment for 2012 - 2013 across all sectors is 12% • Manufacturing industry including Mining, Steel and Cement has the highest increment figures at 15% and Financial Services sector has the lowest increment figure at 10% • Financial services sector maintains a conservative estimate given the overall mood of the economy • Infrastructure & Real Estate‟, ―Pharmaceutical and Healthcare & Life Sciences‟ have reported the same increment figures as last year • ITeS sector has seen the steepest drop in salary projections despite the attrition challenge faced by the industry • Interestingly, in most organizations employers are aware that most employees leave for better pay elsewhere however they have either the same increment or lower increments as compared to last year