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E-commerce witnesses highest salary increment & logistics the lowest: KPMG report

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CIOL Writers
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CIOL E-commerce saw the highest salary increment

The appraisal season is here, the most crucial time of the year for any employee. According to KPMG report, the evaluation season was extra gracious to e-commerce sector, whereas cruel to logistics department.

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While the e-commerce sector witnessed a salary increment of 12.5 percent, logistics sector reported the lowest increment this year at 8.1 percent. However, KPMG report also notes that the same e-commerce industry also saw the highest voluntary attrition rate of 20.4 percent.

Vishalli Dongrie, Partner and Head, People and Change Advisory Services, KPMG in India said, "With the new generation of employees looking for greater control, involvement in key decisions and a culture of feedback and regular conversations, organisations realise that they need to re-think the way they nurture and manage talent and performance. New HR initiatives are being implemented, and organisations are testing waters to create an optimal performance management model."

The lowest increment was seen in the logistics sector at 8.1 percent. The biggest fall, however, was in the banking and financial services industry which saw its increments fall from 9.7 percent to 8.1 percent. The same sector also reported the highest variable pay of 20.7 percent.

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“This indicates that organisations are continuing to move towards paying for performance and variable pay holding a higher percentage in the cost-to-company,” the report said.

The survey, which analysed 263 companies across 19 sectors, also said that the average projected salary increment for 2017-18 will be 9.7 percent. This is 0.6 percent decrease from 2016-17.

Nearly 77 percent of respondents said they identify high potential employees and offer them an average hike of 14.7 percent while 12 percent respondents reported giving an off-cycle salary hike. Gamification (24 percent), robotics and cognitive automation (37 percent) and an emergence of the gig economy (24.5percent) were seen at the most important HR trends in the future.

The survey also looked at compensation levels to attract talent. These were seen as benefit offerings (26.3 percent), guaranteed incentives/variable pay (19.4 percent) and referral benefits/awards (16.6 percent).

The three top grounds for attrition across sectors identified include —better pay elsewhere (28.1 percent), better career opportunities (23.4 percent) and personal reasons including marriage and health (19.6 percent).