Decoding The Annual Compensation Survey of Deloitte

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Decoding the Annual Compensation Survey of Deloitte Human Consulting

Recently, Deloitte released its Annual Compensation Survey. While the survey results are quite detailed in nature, below are the top items, key trends and highlights across sectors in the Indian market in the Compensation & Benefits space.

Participant profile:

  • Highest being Engineering and Manufacturing sector at 15.2%
  • Median being Retail and Auto & auto components at 6%
  • Lowest being Logistics sector at 3.2%
  • Annual Revenue > 1000 Crore = 46% of the organisations
  • Employee Strength > 25000 = 28.8% of the organisations

Industry Snapshot:

  • Infrastructure and real estate has the maximum increase in projected average increments for FY 2016 over previous FY 2015
  • BFSI and Infrastructure and real estate have the maximum increase in projected average variable pay for FY 2016 over previous FY 2015
  • Consumer business and retail sectors show a decrease in projected increments for FY 2016 over previous FY 2015
  • Logistics and Media have projected lower than industry average variable pay
  • 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
  • In BFSI, Pharma and consumer business, the projected average variable pay are significantly higher than industry average

Average Annual Increment Projections:

  • The projected average annual increment for FY 2016 is 10.7% compared to 10.3% for the previous FY 2015
  • Average level wise increment percentiles for FY 2016 is highest for Junior Management at 11% and least for Top Management at 10.4%
  • The average increment projections at Top, Senior and Middle management level are lower than the projected industry average at 10.7%
  • The average increments at all levels in Pharma, Infrastructure and Chemicals sectors are significantly higher than the respective level-wise industry average
  • The average increments at all levels in BFSI, Logistics and Retail are lower than respective level-wise industry average

Average Annual Variable Pay Projections:

  • The projected average annual variable pay for FY 2016 is 17.4% compared to 17.0% for the previous FY 2015
  • Average level wise variable pay percentiles for FY 2016 is highest for Top Management at 24.2% and least for Clerical at 10.4%
  • Clerical and Junior management level are lower at 11.7%, than the projected industry average at 17.4%
  • All levels in BFSI and Consumer Business sectors are significantly higher than the respective level-wise industry average
  • All levels in Logistics, Media and Energy are lower than the respective level-wise industry average

Voluntary Attrition Analysis:

  • In FY 2015 highest attrition across industries was seen in the ITeS sector at 21.9% whereas the lowest attrition was seen in the Energy & natural resources sector at 10.5%
  • Levelwise Highest Voluntary Attrition : Clerical level in ITeS sector at 32.3%
  • Levelwise Lowest Voluntary Attrition : Top Management level in Energy and natural resources sector at 1.6%

Top Three Reasons For Attrition:

  • Better pay elsewhere
  • Better career opportunities
  • Better work life balance

Top Three Compensation Levers For Talent Retention:

  • Long term incentive plans
  • Performance based variable pay
  • Recognition awards (cash/non-cash)

Top Three Compensation Levers For Talent Attraction:

  • Sign on bonuses
  • Guaranteed incentives / variable pay
  • Attractive benefits offerings

We hope you liked the highlights. Please do share among your friends and colleagues.

Please access the original Deloitte’s Annual Compensation survey here.

 

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