The Financial Services sector including, insurance, asset management, private equity ,investment banking ,commercial banking are the hottest sector in India today. Almost all companies are in a hiring mode. The salary levels are in general rising, corporates are keen not to lose talent and are giving astronomical salary hikes up to 50-60% . The top professionals are commanding top salaries now. It just not the CEOs but even the business heads are regularly crossing the crore mark. Indian companies are increasingly paying top salaries to compete with the MNCs and to attract top quality professionals.
Global HR firm Hewitt Associates has forecasted an average salary hike of 14.5% in the year 2007 for India, making India to net the highest growth in Asia- pacific in 2007. Banking and financial services sector may continue with an above average hike of approx. 15.7% to 16.5% this year. But India has still a long way to go to match international salary standards. Salaries in India are still low compared to other Asian neighbours, such as China but the average pay increase in India is more than China.
The financial sector has seen zooming salaries. Pay hikes have ranged from 20% to more than 100% at time in the year 2006-2007. At the same time attrition has also increased and is currently a little less than 30%.
The highest entry level salary paid to a MBA by an Indian firm was Rs. 60 Lakh.Class of 2007-IIML .The trend in the average annual salary in IIML this years is about Rs. 10 lac per annum. Approx.30% foreign recruiters expected at the campus this year. Private Equity and Investment banking firms are the top favorites e.g- J.P Morgan ,Barring P.E etc. Treasury and corporate banking functions are also hot this year.
According to a survey by Hewitt Associates- a global human resources firm - India had the maximum salary increase in the Asia Pacific region , which was around 13 % in the year 2005. In the year 2006 ,India has once again reported the highest average salary increase in Asia at 13.8 per cent, says the 7th annual Asia-Pacific Salary Increase Survey conducted by Hewitt Associates. Hewitt's study indicates that variable pay continues to be an important means of attracting and retaining talent, with 78 per cent of responding organisations using them. It is expected that India and China will continue to have robust salary increases in the coming years.
A One crore package is now quite common place. At Indian Institute of Management , Bangalore a student got an offer of Rs. 85 lakh ($ 1,93,000) from Barclays Capital. At ISB-Indian School of Business Hyderabad the highest salary was over Rs. one crore.This year PPOs - pre-placement offer by the finance companies has been all time high. With HSBC leading the way with highest pay package of 14.5 lakhs per annum, other companies like GE Money-8.5 lakhs, Edelweiss Capital, ICICI prudential -(Rs.8 lakhs per annum ) have also made decent offers.-Source- FMS Delhi.Also, compensation in the financial services sector are also driven by bonuses and there has been a near 100% jump this year. Though there are many job openings in this financial services sector-there is a dearth of talent. Attrition is high and poaching is quite common.More companies are hiring from top tier B schools, and the salaries offered this year have seen a huge surge upwards vis-à-vis previous years. The maximum offers came from financial services and the IT and KPO/BPO sectors. At IIM Ahmedabad-Barclays offered 16 positions. But the Financial services sector was clearly dominant this year and traditional hot sectors as FMCG etc. came second. Last year , Wellingkar placed 189 students with the highest salary of Rs.7.2 Lakh given by a domestic company and around Rs 17 Lakh for an international assignment.
Higher salary was offered to students having specialisation catering to the new requirements of the industry. Companies with new requirements include -Standard Chartered, Lehman Brothers, Glodman Sachs, Mcguaire Bank etc. Average salary offered ( TOP TIER B SCHOOLS) was in the range of 8-10 lakhs and average foreign salary was in the range of $75,000-$1,00,000 per annum.MDs salary level-1 crore-4.5 crores. Sample this: Two recent recruit in Reliance Retail was at Rs. 4.5 & 4.2 crore respectively. DSP Merill Lynch offered a top salary of 4 crore and last year Standard Chartered Bank offered Rs. 4 core as well. Upper level management in India is increasingly adapting its pay standards as per global standards, benchmarking US and the UK.
- Presidents, CFO, Business Heads-50 Lakhs - 1 crore+ per annum
- Vice President, General Manager-Rs.20 Lakhs - 50+Lakhs per annum
- Mid Level Salary can range from 5 lakhs to 20 lakhs per annums
- Salary at lower level can range from Rs 2 lakhs to 5 lakhs per annum.
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