Last year, the leading attrition figures were attributed to the job category "Customer Service Representatives" across various sectors. You won't believe that this job category registered an attrition rate as high as 40% in a few segments due to its demands.
Many people believe that companies leave no stone unturned in order to retain employees. Many companies have introduced a variety of HR practices, especially in compensation, to retain the employees which range from stock options to retention bonues.
Therefore, it makes it so difficult for the competitors to poach the employees from other organizations. Last year, Corporate Executive Board, an international professional services firm conducted a survey and found that on an average, employers in India pay a premium of 26% to poach an employee from the competitor compared the global average of just 16%.
The spiraling salary increase could also be attributed to the salary surveys done by various HR consulting surveys as well as individual consultants. I do not understand as how these organizations / consultants arrive at salary figures for various jobs. To add to the confusion, there are so many websites now provide salary information for various jobs without adequate information about the companies surveyed. For example, the following website provides salary survey information for finance professionals. http://www.careerfinance.com/salary.html
Recently, I came across one interesting piece of information in rediff.com that a leading banking and financial services organization dumped the salary survey report of a consultant.
A few years back, this organization had engaged a consultant to advise it on the industry salary levels for one of its top jobs. The consultant came up with astounding numbers. A little bit of enquiry found that the consultant has handpicked only a few new unlisted banks which pay top-drawer salaries just to poach people.
"I asked the consultant why he hasn't included other banks which pay lower than us. There was no answer and hence I dumped the report," Ram Kumar. Read the full report in rediff.com.
Should other organizations follow the trend?
3 comments:
When it comes to compensation benchmarking, it is usually thought of from the point of view of the company.
There is no doubt that the company needs to be careful of the benchmarking study it is undertaking. And this is usually taken care , as the procedure and components of the benchmarking study are usually debated and thought over by the consultants and the managers of the organization (barring some above mentioned exceptions).
But another important use of the salary surveys is as a tool for the employee to know his worth and to serve as a back up to justify an increase in his salary
There are a numerous web sites in USA that help the employees with such information and they take into account numerous variables into this calculation (geographic location, urban vs. rural setting, and organization size). But, there is still a scope for accurate and in depth sites to be developed in the Indian context.
The sites definitely need to be validated and prove their worth in terms of reliability. Its only then that they can be a useful tool for HR managers and employees.
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