Salaries To See Hike Over Inflation In Next 5 Years

By SiliconIndia  |   Wednesday, 01 April 2015, 13:35 Hrs
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BANGALORE: As per the study made by the Towers Watson-CII Industry Opinions Study,  the next five years is expected to see a leap in salaries above inflation level. However, most of the increase will be confined to high ranked designations than mid or junior levels.

The wage gap between high earning class to mid and low earning class will widen with an increase in the number of jobs available.

They believe that, the wage inequality  has come out from around 60 percent respondents of the study from small organizations and 54 percent from large organizations.

If looked into the various sectors,  70 percent of companies across financial services segment, 68 percent from professional services, 62 percent from consumer discretionary segment, 54 percent from manufacturing and 36 percent from energy sector also expect the wage gap rise.

 The positive scene out of this is, the number of jobs to be generated in next five years will also experience a hike.

Job increase is hopeful in the junior levels of capital goods and transportation.

The Managing Director of Towers Watson India, Vivek Nath said, "While attraction and retention of quality talent continues to remain a challenge, the future envisages a tougher business ecosystem in light of rising wage costs, potentially an inadequate supply of skilled talent and workforce productivity."

In the study, 42 percent of the companies believed, that rising share of workforce costs would be a major challenge to keep in par with growth. 53 percent of the companies expect inadequate supply of skilled workforce as a foremost concern. 39 percent commented about slow labor and 46 percent believe that stagnating workforce is a serious threat.

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