Mid career professionals have unique set of challenges, the coming financial year likely to witness an increase in job switches by mid career professionals. Jobs creation across the economy is running at around 15,000 new jobs a month. This is three times larger than the average of around 5,000 jobs a month last year. Professionals looking to switch jobs this year can expect to get an average salary hike of around 25-30%, which is higher than last year.
According to the data of Bureau of Labor Statistics, the most underperforming employee can also expect a 1.3% raise. The best performers can hope for a 4.5% raise. The average raise an employee receives for leaving is between a 10% to 20% increase in salary. Some extreme cases will receive upwards of 50% depends upon their experiences and industry they are working. FMCG, pharma and IT companies are expected to dole out an average 30% hike to lateral hires this year. IT sector professionals on an average received the highest increases last year, at 28% followed by the FMCG and financial services sectors.
The compensation study was conducted among candidates who had been assisted with employment opportunities by the recruitment firm with annual salaries in the range of Rs 5 -20 lakh. On an average this is 10-20% higher than salary increments most Indian firms are expected to give for 2014. On an overall level, the engineering sector gave the lowest salary hikes in 2013 – at 21% to people coming on board from other companies. While compensation is right on top when professionals move jobs, people also evaluate an offer based on the overall job profile and their potential to grow.
As far as the IT sector goes, which is not in a major hiring drive, mid to senior level employees who are seen to have specialized skills, were in demand unlike fresher’s who could not generate as much demand. With this backdrop last one month has seen 15% increase in new profile postings and profile updates as compared to previous month. Especially candidates from Delhi,Bangalore,Pune witnessed 25% increase in hiring trends. Mid level professionals of IT and Finance sector have witnessed updating their profiles to switch their jobs.