Recession effect: No more double digit salary hikes

'Double digit salaries' for employees may sound archaic anymore with the firms relentlessly checking on the expenses due to the recession. India Inc will have a cautious approach towards salary increases in FY'10. Even if a company performs extraordinarily better, it will still be conservative with any pay hikes," said Naresh Malhan, Managing Director, Manpower India.

The recession has become a learning ground and the companies would consider more cash reservation post downturn instead of mulling on significant hikes in salaries this year.

Industry experts believe that companies are looking for innovative ways to handle their talent rather than just layoffs which include multi-skills training and consciously looking at filling up gaps in the organization.

The salary hikes, which have been doled out by Indian companies in the past few years, can only be seen again if the similar aggressive economic growth can be re-achieved. As per another finding, Hewitt Associates has revealed that Indian companies are projected to witness an average salary hike of 8.2 percent in 2009, the highest in the Asia-Pacific region. The trend would also affect the HR personnel as there would be a significant decline in recruitment.