Want salary hike, join financial sector

Growing attrition rate has forced India Inc to shell out more money for paying better salaries, industry body Assocham said.

According to an Assocham survey, financial services sector increased salaries by as much as 54.73 per cent in the quarter ended June 30 as against the corresponding quarter previous fiscal.

The financial services sector was closely followed by IT with a rise of around 44 per cent, followed by production houses where the salaries were increased by 29.56 per cent, an Assocham release said.

Chamber said the cost incurred on the companies in retaining staff also outpaced the growth in their profits.

India Bulls was amongst the highest payers in financial sector with a 262.44 per cent increase in their staff cost. Firms like Geojit Financials, IL&FS and CRISIL also registered 82 to 85 per cent rise in their staff expenditures.

The financial services sector was followed by IT where staff costs rose as much as 43.87 per cent, with Infosys leading the brigade with as much as 53 per cent increase.

Patni Computers had to hike salaries to the tune of 21.65 per cent in the quarter despite 129 per cent decline in its net profit.

Media firms, which registered a mere four per cent rise in their net profit in the quarter, increased its staff cost by 29 per cent, the release said.

The salaries rose by over 251 per cent in Balaji Telefilms and the drop in the profits of firms like Cinevistaas, UTV, Zee Telefilms, Mid Day Multimedia and TV Today can be partly attributed to the increasing staff costs, the release added.