Engineers get the BIGGEST salary hike in 2012-13
Engineering roles are at the top of the pay scale for fresh hires in India, and saw the highest salary increase this financial year, outperforming other jobs like sales, HR, administration and support services.
The median monthly salary of graduate engineers in engineering roles has increased to Rs 25,000 in the current fiscal, from Rs 22,500 last year, a 11% increase, says a survey by global management consultancy Hay Group.
Median salaries for HR professionals went up 10.1% to Rs 20,923, while those for administration and support roles increased 8.2% to Rs 18,500.
The report analyses remuneration practices in Indian companies with median salaries of fresh graduates in the range of Rs 18,500 to Rs 25,000 effective April 1, 2012. The study looked at 4,18,414 jobs from 410 companies across a host of sectors including industrial goods, chemicals, FMCG, high technology, oil & gas, retail, life sciences, natural resources, consumer durables, education, and utilities.
The engineering sector representative of manufacturing, chemicals, oil and gas, natural resources and high technology has turned out to be good paymasters, attracting campus talent. "There is a positive momentum in salaries of non-IT engineering roles that largely reflects the sentiment of the industry. With pay hikes expected to be 11% this year, this trend will reflect in the salaries of graduate engineers," said Amer Haleem, country manager - productized services, Hay Group India.
Indian Oil, for instance, will be hiring 250 graduate engineers with a basic monthly pay of Rs 24,900 that does not include allowances and perks. The cost-to-company is between Rs 9.30-9.90 lakh per annum including performance-linked payout. Graduate candidates selected for their Graduate Apprentice Engineers (GAE) programme are paid a consolidated stipend of Rs 35,000 a month.
The entry-level salaries in non-IT engineering companies are comparatively higher because of the supply-demand mismatch. "Most companies are fighting for the same pool of talent. The war for talent is not about headcount, but based on skillsets," said Muninder Anand, director for information solutions in human resource advisory company Mercer Consulting India.
Salary increase, especially in the oil and gas sector, is also because of its robust pipelines. "Oil and Natural Gas Corporation has notified 14 discoveries in the first half of the fiscal. Exploration, drilling and production specific talent are in demand," said Kamal Karanth, MD of recruitment consultancy Kelly Services.
In comparison, graduate engineering salaries in IT companies remained flat at Rs 22,500 in the current financial year. Bangalore-based Infosys, for instance, did a net hiring of just 977 people in the quarter, the second lowest in at least a decade.
"Given the current state of the US and UK economies, there is severe pressure on the operating margins of IT companies, leading to diminishing ability to pay higher salaries. Firms carry people cost in the range of 65-70% of the total cost. In case of product based organizations, the affordability is relatively higher given that they are placed higher in the value chain of services being offered," said Anand.