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The Nasscom Hewitt Total Rewards Study was conceptualized in 2002 to aid better understanding of the rewards systems in the IT and ITES Industry. This is the 5th consecutive year of the study, which aims providing organisation's HR function a pulse of the market in order to allow them to design a differential reward policy with a view to attract and manage talent and garner the right business and financial results. The study attempts to provide comprehensive coverage on compensation and benefits trends and provides insights to some of the hot topics pervading the industry today.
The study saw an extensive coverage across small, medium and large sized organisations from across India. The study results are based information provided by close to 130 organisations this year across IT and ITES industry. The results will provide an enhanced and increasingly lucid picture of the Total Rewards scenario in these sectors.
The IT industry was represented by 90+ organisations sharing information across Application Software, System Software and Hardware Design job families in software development. Information shared was across levels starting from software engineer upto SBU head. The comparator basket witnessed a representation both from product and services organisations.
ITES industry was represented by 50+ organisations sharing information across Voice and Non Voice Operations. Information shared was across levels starting from Process Associate upto VP level. The comparator basket saw a mix of captive units as well as third party providers.
To provide a broader representation of market compensation ranges, year 2006 saw the Total Rewards Study strengthening analysis with multiple data point analysis (minimum-median-maximum) across levels and across job families. |
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Study Insights – IT Industry |
As per the Phase - 1 results of the Hewitt Salary Increase Survey 2006, the average increase in the IT sector across levels was in the range of 14-15%.This figure has been further corroborated with the Nasscom Hewitt TRS throwing up a similar figure of 16% as an average year on year movement in compensation across levels. Continuing with the trend of last year the Mid point differential (Difference between levels on median of the market) in 2006 ranged from 38% to 48% , an indication of clearly defined roles and responsibilities at each level.
Hardware Design commands the highest premium in software development, with premiums ranging from a low of 11% to as high as 40% across some levels when compared to the overall software development market medians. The system software premiums ranged from 3%- 16% across levels.
Application software, on the other hand saw a marginal dip of medians when compared to the overall software development market medians, the dip in data was from 3%-12%. |
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Study Insights – ITES Industry |
To present a comprehensive analysis for the ITES operations job group, differentiated data was collected for Voice and Non Voice Operations in the 2006 study. The study results when compared with the broad operations group of 2005 indicate an overall year on year average increase of 8% for Voice and 11% for Non Voice processes across levels.
Individual contributors, across Voice & Non Voice see an average increase of 13% and 17% respectively, thus indicating the premium that some of the higher end Non Voice processes may command due to the nature and complexity of work. Middle Management and Senior Management see an overall increase of about 10% and 5% respectively. Mid-point differentials (The median difference between two consecutive levels) in 2006 ranged from 20% at the process associate level to as high as 90% at the VP level in the Industry. The higher levels witnessed a higher mid point differential, attributable to significant increase in roles and responsibilities and complexity levels.
Collections command a premium of 2% on median across levels over combined voice operations, whilst F&A commands a premium of 4% across levels over combined non voice operations.
The current year results read in tandem with previous years will give a clear indication as to the movement around rewards trends in the country.
The Nasscom Hewitt Total Rewards Study Industry Report provides in-depth analysis across levels in both IT and ITES. The comprehensive sector wise analysis would enable organization to use this information to understand market practices with relation to Total Rewards and facilitate fact based decision making on compensation & benefits including trends around skill premiums, locational differentiation, Per diems, FBT and undergraduate recruitment trends.
For further queries on the study please contact the Nasscom-Hewitt team at nasscomsurvey@hewitt.com |
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