New Delhi: The trend of rising salaries amongst Indian companies is proving to be a threat to India’s competitive advantage, according to K N Memani, chairman of the American Chamber of Commerce at their annual HR conference on executive remuneration and employee attraction held in New Delhi earlier this week.
Jeffrey Fuller, principal advisor of Human Capital, a consulting arm of Mercer said that a mere 25% of graduates that India produces every year is actually employable.
Identifying the “issues of escalating remuneration and decreasing employee loyalty and talent crunch” as a serious challenge to human resource managers, he highlighted the need for companies to have in place the right combination of policies and an effective implementation of the same to be able to address critical HR issues, that could impact both productivity and morale of the work place.
The conference was aimed at leveraging HR managers to deal better with the challenge of employee attraction and retention.
He said that even though India is poised to become the third largest economy in the world by 2050, out of all the graduates that pass out in an academic year, only 25% are suitable for geting inducted into the industry.
The high level of attrition across sectors is an issue that companies are going to feel impacted with in the coming years. A study of the present trend of compensation patterns needs to be studied in detail by employers if they have to understand employee mindsets.