22% Hikes Out for Delivery in Ecomm

Shortage of talent to drive up increments for best performers across most sectors

Salary hikes are tipped to go on an overdrive this increment season with top performers in FMCG, oil & gas, industrial goods, retail, transport, technology , etc, set to earn increments in excess of 20%.

Average increments in most sectors are expected to be in double digits, according to estimates from leading talent and compensation firms, Hay Group, Mercer, Aon Hewitt, Towers Watson and TeamLease. These firms are also in consensus that top performers will earn almost double the average increment. This has set expectations of 20%plus hikes for top performers.

“This year, the differentiation (between top and average performers) is higher. Companies are paying double to their top performers compared with average peers to retain them,“ said Ajit Isaac, chairman of Quess Corp (earlier Ikya Human Capital Solutions). “There is expected to be big supply-demand gap, and some terrific success stories of companies along with good earnings per share is making the differentiation sharper,“ said Ajit Isaac of Quess Corp.

The ecommerce industry is expected to roll out an 1822% raise on an average compared with 10% last year. And the IT industry is also expected to dish out one of the largest variable payouts of the year.

“Demand far exceeds supply in the ecommerce sector at the moment as it’s witnessing a huge surge in interest and expansion. Attracting and retaining talent is a priority to ensure seamless expansion,“ said Rituparna Chakraborty, co-founder & senior vice-president of TeamLease Services. The ecommerce sector, with revenues of over $12 billion, is expected to hire more than 1 lakh employees in the next six months. Top performers in ecommerce firms may get up to 30% pay hikes.

The technology sector, fighting to retain key talent while also shedding flab, will clamour to retain employees with a flair for new skills.

“The hi-tech industry will see higher increments because of the increasing demand for IT and IT-related services from the other economies,“ said Sambhav Rakyan, Data Services practice leader, Asia Pacific, Towers Watson. This industry , which is on a drive to make itself lean, has also been announcing 100% variable payouts. While Towers Watson says the technology sector can roll out 10.7% raise, up from 10.5% in 2014, TeamLease says demand for niche talent while adopting automation could see employees get even 18-22% raises this year.

The manufacturing sector is likely to see higher increments this year. This, said Shanthi Naresh, Mercer India business leader, Information Solutions, is due to “an upturn due to improved business pipeline (especially companies in the capital goods sector) and the impetus being given to this industry through the government’s focus on the `Make in India’ campaign“.

Average increments in the consumer industry are pegged at an estimated 11.9%, which is at par with last year.

Those in the automotive space will get lower increments this year. The sector will see a 10% raise compared with 10.5% last year, those in telecom will get a barely 5% raise compared with 7% last year. “The fallout of the 2G scam and a lukewarm pick-up of 4G is largely responsible for the negative sentiment around telecom. Costs are going up, making survival difficult for most players,“ said TeamLease’s Chakraborty.

In 2015, the average raise for India Inc is expected to touch around 11.3% compared with 10.9% across industries, says the Hay Report.

Source: The Economic Times

Date: January 29, 2015

PACKAGES HIKED BY UP TO 25% – Off the IIM Circuit, Placements Rock at Top B-School Campuses

A rush of offers from old and new recruiters, 10-15% hikes in average salaries, more international offers and the charge of the e-commerce brigade are marking the return of good times on campus. The country’s top business schools, including the likes of MDI Gurgaon, SPJIMR,IIFT, XIM Bhubaneswar, NMIMS, WeSchool and SIBM, Pune are revelling in the best final placements in recent years.

“We had anticipated a good year but what we got was beyond expectations. Several recruiters who had come to campus had to go back empty-handed,“ says Kanwal Kapil, chairperson, placements at MDI Gurgaon. A 338-strong batch went into placements at MDI last week, including some 71 who already had pre-placement offers. At the end of a hectic first day, only five students were left to be placed, says Kapil. “It was crazy.“

Reflecting the upbeat business sentiment, recruiters are wooing talent with pay packages that have gone up by up to 20-25% as compared to last year. Conglomerates such as RIL, the Mahindra Group and the Tata Group are reportedly paying upwards of . 17-20 lakh while banking majors including ` Citibank and HSBC are paying between . 17.5 lakh and ` ` . 18 lakh. Goldman Sachs is offering between ` . 30 lakh and ` . 32 lakh; ICICI Bank is offering around ` . 14.5 lakh.

Citi India is visiting top-rated business schools apart from the IIMs for the Management Associate and Experienced Management Associate programmes for candidates with work experience. “Our hiring numbers are between 63 and 65 students,“ says Sarab Preet Singh, head of recruitment, learning and development.

In the consumer space, companies including P&G, Asian Paints, Godrej, Marico, HUL and Colgate-Palmolive are shelling out between ` . 18 lakh and ` . 23 lakh while consulting major BCG is offering over ` . 26 lakh.

Salaries from EY range between ` . 16 lakh and `. 20 lakh and from Infosys, between ` . 13 lakh and ` . 21 lakh.

From the buzzing e-commerce domain, Flipkart is paying around ` . 17 lakh; Snapdeal.`22 lakh-plus, while Amazon is offering up to `. 29 lakh for product roles. Depending on the relevant experience, salaries could go up further; the variable component is often additional.

“Given the rapid growth in the e-commerce industry, it is imperative to look at innovative talent from various Bschools. To bridge this growing demand for talent, we are planning to hire close to 150 candidates from Bschools this year,“ says Surinder Bhagat, senior director -HR at Flipkart. Of this, anywhere between 100 and 112 students will be from non-IIMs alone. Last year, the company’s total intake across all Bschools was at 110. Management students are being hired across various functions like supply chain, product marketing, technology automation, analytics, business finance and HR and will go through a management trainee programme.

Like Flipkart, many other companies are also stepping up hiring. At WE School, for instance, Infosys has taken 36 students this year as compared to 11 last year. At SP Jain Institute of Management and Research, several first-timers on campus have hired in good numbers, says Sonali Kohli Mehra, deputy chairperson -external relations, PGDM at the institute. First-timers at SPJIMR including SAP, the Future Group, Bharti Retail, Godrej and Snapdeal have hired around 7-8 students each, some going up to double digits. At MDI, Snapdeal and Flipkart together hired around 42 students.

Besides a 40-50% average increase in the number of pre-placement offers (PPOs) across institutes, top salaries have also surged. At IIFT, there has been a 20% rise in the highest compensation offered, while at XIM Bhubaneswar, where placements are still on, the highest salary so far has been . 20.5 lakh from HindustanCoca Cola Bever` ages, as compared to last year’s highest of ` . 18 lakh from the same company.

International placements have picked up as well. IIFT -where the top salary from a US company is at $1,10,000 -has 13 foreign offers across locations such as Beijing, Melbourne, San Francisco, Dubai, Moscow, Bangkok, Singapore and Nigeria from recruiters such as Louis Dreyfus, Glencore, AluZinc Asia, Phoenix Commodities and Vital Solutions Singapore. Two German companies made the highest offers at MDI Gurgaon; at SPJIMR, a UAE-based financial consulting firm making its debut on campus offered the top salary of ` . 29.5 lakh.

SIBM Pune saw a talent war being waged with a number of students being made multiple offers, says R Raman, director. Average package at the institute has shot up to . 13 lakh from ` ` . 11.71 lakh last time.

The highest international and domestic offers are at `. 31 lakh and ` . 22 lakhrespectively as compared to ` . 28 lakh and ` . 19.33 lakh last year.

Close to 70 companies participated in the placement process.

At NMIMS’ Mumbai campus, where final placements are still on, the institute expects participation from around 125 companies including 45 first-timers. Leadership and strategy profiles are being offered apart from the usual ones, and students have received over 170 PPOsPPIs.

Source: The Economic Times

Date: 23-01-2015

FM Gets Oppn Support for Insurance, GST Bills

Govt concedes difficulty in securing support for mining & land bills

The government’s floor managers, led by finance minister Arun Jaitley, have reached out to Opposition parties for securing their support for passing bills to replace various ordinances, issued by the government recently, in the budget session of Parliament that begins on February 23.

According to top government sources, Jaitley, who is also Leader of the Rajya Sabha, has been busy wooing various political parties, and has been promised support for the insurance ordinance and the GST Bill in the Upper House, where it lacks the numbers “The Opposition, including the Congress, has assured support for the GST Bill, and the ordinance on FDI in Insurance, which anyway went through the select committee earlier,“ said a senior minister in the government.

Jaitley attended the Mamata Banerjee organised business summit in Kolkata and met AIADMK chief J Jayalalithaa to shore up support, at least for these two legislations. Congress leaders, too, are believed to have told government emissaries that they will not oppose the two bills.

But government sources conceded that it would be difficult to secure support for the mining and land acquisition bills. The Biju Janata Dal is opposing the first one, and Congress the second, with even former minister Jairam Rameshholding a public meeting at Bhatta Parsaul in Western Uttar Pradesh to protest against it.

“The tricky party would be the mines bill and the amendments to the Land Acquisition Relief and Rehabil itation Act, 2013,” said the minister.

Government managers are working the back channels with the Samajwadi Party, the Bahujan Samaj Party and even to a certain extent with the Left. “We managed to clear our first ordinance (on the appointment of Nripendra Mishra as principal secretary to the PM), in the first session of the new Lok Sabha with the support of the Opposition,” said a government source, implying that cooperation between the government and the opposition cannot be ruled out. BJP MP Sakshi Maharaj’s remarks glorifying Nathuram Godse, the assassin of Mahatma Gandhi, had put paid to the Winter Session of Parliament last month.“He has been served a notice (by the BJP) now. So, that that shouldn’t be an issue,“ said the minister quoted earlier.

The session will start with an address by President to both Houses of Parliament on February 23.The Railway Budget will be presented on February 26, the Economic Survey on February 27 and the Budget on February 28.

Source : Economic Times

Date: 22-01-2015

IMPASSE OVER NUCLEAR LIABILITY LAW – US Company `Optimistic’ About Early Resolution

Westinghouse Electric Co, which signed an agreement to supply nuclear reactors for a proposed power plant in Gujarat, is “cautiously optimistic“ that US concerns over an insurance pool suggested by India to resolve the imbroglio over the nuclear liability law will be addressed before US President Barack Obama visits the country this weekend.

A bilateral contact group on civil nuclear cooperation, which had two rounds of discussions in New Delhi and Vienna, is holding a third one here this week to consider US apprehensions over the proposed insurance pool that will compensate suppliers in the event of an accident, sources familiar with the developments said.

However, a senior official from Westinghouse pointed out that the insurance pool may not be a foolproof mechanism of arranging full compensation. The US-based provider of nuclear power plant products and services, owned by the Toshiba group, fears it may still have to bear some of the liability, a concern that the contact group will seek to address, official sources hinted.

Resolving the impasse over the liability clause, which leaves suppliers accountable for damages in the event of an accident at a nuclear plant, will be a key deliverable from the Obama visit. Indian officials said the proposed nuclear insurance pool is the best available option since the liability law was passed by Parliament and cannot be tampered with.

The contact group, set up when Prime Minister Narendra Modi met Obama at the White House in September, was mandated to discuss all issues hampering the implementation of the civil nuclear energy cooperation agreement signed by India and the US in 2008. The Westinghouse official familiar with the Indian project said the company is “cautiously optimistic“ that both sides will be able to make “progress“ in the next few days towards commercial implementation of the nuclear deal.

Senior company officials were pre sent during the `Vibrant Gujarat Summit’ held earlier this month to hold discussions with Indian officials. US Secretary of State John Kerry, who attended the summit, said that civil nuclear energy cooperation was among the four issues that would figure prominently during Obama’s meeting with Modi. The other issues are climate change, defence and investments. Westinghouse is to supply reactors for a proposed 6,000 MW plant that will be run by state-owned Nuclear Power Corporation of India Ltd at Chhaya Mithi Virdi in Bhavnagar district of Gujarat. Apart from an “Early Works Agreement“ inked between Westinghouse and NPCIL in September 2013, there has been no major progress on the project.

A senior US State Department official had said last week that of late, “a great deal of rolling-up-your-sleeves discussions“ have been held to clear the roadblocks for US companies to sell nuclear reactors to India.

“There’s a commitment from both sides to try and find a way through that. I don’t know whether that will be resolved in time for the president’s visit, but I think there is progress being made,“ said the official, who accompanied Kerry to the summit.

Obama will start his India visit on January 24. He will hold a meeting with Modi on January 25 and attend the Republic Day ceremony as the chief guest the next day . He will hold a town hall meeting on January 27 and visit the Taj Mahal before leaving.

Source: The Economic Times (Mumbai)

Date: 21st Jan, 2015

5 WAYS TO – Make Your Employees Feel Valued

In today’s ambiguous and volatile work environment, employers need to do more than provide compensation and perks to make employees feel cherished. Offering stretch assignments to high potential talent, building a culture of transparency and clarity, and prompt rewards could build a sense of belonging, finds Anumeha Chaturvedi.
1 Challenge Them
Challenging employees within their routine tasks to deliver a higher quality output, or tackle a problem and take up more responsibilities can make a difference, according to Achal Khanna, CEO, Society for Human Resource Management.“Constant support from the manager during this challenging task will further make him or her feel valued,“ says Khanna.

2 Reward Employees
Frequent and more prompt rewards and recognition channels can help build affinity, says Khanna. “While team-based appreciation works well, if organisations can also focus on recognising individual employees and rewarding them according to their accomplishments immediately instead of annual and bi-annual awards,the engagement level increases,“ says Khanna.

3 Place Trust in Them
Building a culture of transparency and placing trust in employees can make them feel more con nected. Very often the manager plays the role of the bridge for an employee, says Mervyn Raphael, managing director of HR consulting firm People Business. “For an employee, the manager is the company. Managers need to demonstrate behaviours that create a positive environment and build trust and transparency,“ he says.

4 Offer Clarity in Roles
Employees would like to know the value they are providing. “Whether he or she is an engineer or a sales professional, employees would like to know their line of sight -what is the value that they are creating for the company, where do they stand in the value chain and how does their role help the organisation,“ says Raphael.

5 Invest in Skilling
It is important to recognise employees as people with both strengths and weaknesses, says Khanna. As humans they are bound to err, and there should be room and mechanisms for improvement. “Focus on developing weaknesses through constant communication, support and training,“ says Khanna.

Source : The Economics Times
Date : 20th Jan 2015

Cyclone Hudhud Was Last Year’s Most Expensive Natural Disaster’ – Sangita Mehta Mumbai:

Cyclone resulted in a loss of $7 billion for the Indian economy, says Munich Re
Cyclone Hudhud, which hit Visakhapatnam with monstrous fury a few months ago, is ranked as the most expensive natural catastrophe last year, resulting in a loss of $7 billion for the Indian economy, according to a report released by Munich Re, a global reinsurance company.
The report said that losses from natural catastrophes amounted to $110 billion in 2014 against $140 billion a year ago. Of the $110 billion, roughly $31billion was insured, against $35 billion insured in 2013. The second most expensive catastrophe last year was the heavy snowfall in Japan, which cost the nation $3.1 billion. In 2014, a total of 980 loss-related natural catastrophes were registered.
Around 7,700 people lost their lives in natural catastrophes the world over in 2014, against 21,000 in 2013. The severe flooding in India and Pakistan last year, which claimed 665 lives, also featured in the report. Interestingly, Cyclone Hudhud also highlights the preparedness of the authorities and the meteorological department, with the administration evacuating half a million before the cyclone lashed the coastal town.
Of the overall losses of approximately $7 billion, roughly $530 million was insured -a comparatively small percentage -but insurance density in India is showing a constant growth, the report added.

Source : The Economics Times
Date : 20th Jan 2015

Banks Can Take Up Insurance Broking Biz

Banks will now be able to provide customers a choice of insurance companies whose products can be bought through the bank with the central bank permitting banks to get into insurance broking. Banks can choose whether to be tied to one company as a corporate agent or to become an independent broker. However, RBI has put on banks the onus of ensuring the suitability of insurance product sold to their customers.

Reserve Bank of India on Thursday tightened norms for entry of bank into the insurance joint ventures by requiring a minimum capital adequacy of 10%, equity capital of Rs 1000 core and net nonperforming assets below 3%.However, it has said that banks can take up insurance distribution through a corporate agency or broking structure within the bank without any prior permission.

Banks that choose to float a broking subsidiary or a joint venture will however will need to obtain a clearance from RBI. They also need to meet some minimum criteria which includea a capital adequacy requirement of 10%. These banks would also need to have a minimum net wroth of Rs 500 crore and should contain their bad loans below 3%. The stiff norms on capital requirement are likely to deter many public sector banks that are weak on capital adequacy .

The finance Minister in the budget speech 2013-14 announced that banks will be permitted to act as insurance brokers with the objective of increasing insurance penetration using the entire network of bank branches. At presentmost banks are associated with an insurance company as a corporate agent. However, bulk of the premium from the bancassurance channel is generated by a handful of new generation private banks such as HDFC Bank and ICICI Bank. Although close to a dozen public sector banks have equity stake in insurance companies, they have not been as successful as private banks in distributing through bank branches.

The insurance industry meanwhile is almost equally divided between companies that have equity participation from banks and those that do not. Companies that do not have a bank partner have been lobbying with the regulator and the government for an open architecture system where one bank can sell products of multiple companies

Source: The Times of India

News: January 16, 2015