2018

The report highlights interesting trends in terms of not only how compensation and benefits structures have evolved in India over last few decades but also how these vary from Industry to Industry ; how new age industry sectors differ from tradition industry sectors and what employees actually value.  The Age of Plain old salary increments is over and a radical compensation mix – comprising between 60% and 40% fixed-to-variable and between 38% and 85% intangible-to-tangible – is ushering in the Total Rewards era in India. As a critical component of Total Rewards, Flexi-benefits are fast gaining currency thanks to personalization, higher perceived value and better tax benefits. Sectors employing a bigger pool of mid-level professionals have a rationalized compensation and rewards structure, and hierarchical profiling shows up a sharp increase in variable pay higher up the hierarchy. While organizations are taking active measures to retain critical talent substantial mismatch between employee and employer expectations at both the talent acquisition and retention phases diminishes the economic value to both. Employers have an “attraction disconnects”, and “retention disconnect”; Employee carries liberal benefits expectations throughout the lifecycle and has substantially low satisfaction levels on compensation and benefits.