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MNCs pay more to Indian staff
By
siliconindia news bureau
New Delhi: Indian employees in multinational firms get high pay packages than staffs in other geographies. A report tilted 'Compensation Practices in India 2008' by human resource consulting firm Mercer Llc have found that while the Indian arms of global companies turn to local market surveys to set Indian salaries, they usually position themselves as employers that pay above industry averages, reported mint.
According to the report, these firms target the 65th or 75th percentile of the salary range, rather than the middle, which is the norm in most other countries.
"Firms are willing to be more aggressive in positioning themselves in markets that are growing very fast," said Gangapriya Chakraverti, business leader, Mercer who worked on the report. She said that this phenomenon applied most often to information technology companies, and specifically when they were looking at expanding their India operations.
"We thought companies are fairly ad hoc in the way they manage compensation, but most policies were laid out, and while they were governed by global principles, global companies will customize principles that were unique to the market," added Chakraverti.
According to the report, these firms target the 65th or 75th percentile of the salary range, rather than the middle, which is the norm in most other countries.
"Firms are willing to be more aggressive in positioning themselves in markets that are growing very fast," said Gangapriya Chakraverti, business leader, Mercer who worked on the report. She said that this phenomenon applied most often to information technology companies, and specifically when they were looking at expanding their India operations.
"We thought companies are fairly ad hoc in the way they manage compensation, but most policies were laid out, and while they were governed by global principles, global companies will customize principles that were unique to the market," added Chakraverti.
Reader's comments(15)
1
This is not so correct statement. Request silicon India to share statistics. By
"other geographies" if silicon india news bureau means Dhaka or Sudan I am
afraid it would take years before those countries get maturity and expertise as
Indian Software is having , And also feel it would not be fair comparison.
"other geographies" if silicon india news bureau means Dhaka or Sudan I am
afraid it would take years before those countries get maturity and expertise as
Indian Software is having , And also feel it would not be fair comparison.
Posted by:
shuklaji
Friday, November 28, 2008
2
NAMASKAR FROM SHANKAR GURU.
THE DATA, STATISTICS, ETC. IS ALL UNDER WRONG PARAMETERS.
YOU NEED TO COMPARE WORKING IN BOTH THE COUNTRIES ON EQUAL TERMS. NIGHT SHIFT
THERE TO NIGHT SHIFT HERE ONLY. PAY PER HOUR WITH PAY PER HOUR HERE. OUTPUT PER
HOUR THERE WITH OUTPUT PER HOUR HERE, ETC., YOU WILL DEFINATELY BE ASTONISHED TO
FIND THAT THEY PAY IN INDIA HARDLY 25% OF WHAT THEY PAY THERE.
THE DATA, STATISTICS, ETC. IS ALL UNDER WRONG PARAMETERS.
YOU NEED TO COMPARE WORKING IN BOTH THE COUNTRIES ON EQUAL TERMS. NIGHT SHIFT
THERE TO NIGHT SHIFT HERE ONLY. PAY PER HOUR WITH PAY PER HOUR HERE. OUTPUT PER
HOUR THERE WITH OUTPUT PER HOUR HERE, ETC., YOU WILL DEFINATELY BE ASTONISHED TO
FIND THAT THEY PAY IN INDIA HARDLY 25% OF WHAT THEY PAY THERE.
Posted by:
SHANKAR CN
Thursday, November 27, 2008
3
There is an unfair distribution of wages in most multinational companies. MNCs
have always been very manipulative in deciding the salary structure. Had they
not got quality work from Indians, they certainly would not have outsourced work
to India (both IT and ITES sectors).Actually, we, Indians have set global
standards in the IT and ITES field.
It has to be noted that MNCs don't mindlessly give such hefty packages. On the
contrary,more often,they look down upon employees (especially BPO/call center
workers) by paying them peanuts. The monthly salary which a call center employee
working in India gets after slogging for 8 hours,doing graveyard shifts,is less
than what a Burger boy in California makes in a couple of hours and this is the
bare truth. We are nothing but cheap labors to them.
Nevertheless,MNCs have recognized the vast talent pool in India,nurtured it and
cleverly utilized it owing to which we have been able set new benchmarks in the
globe.
However,it would be highly unfair to generalize that all Indian employees
working in MNCs are well paid.With such a huge disparity of wages existing,a
larger part of the work force don't really agree with the report mentioned in
the article.
have always been very manipulative in deciding the salary structure. Had they
not got quality work from Indians, they certainly would not have outsourced work
to India (both IT and ITES sectors).Actually, we, Indians have set global
standards in the IT and ITES field.
It has to be noted that MNCs don't mindlessly give such hefty packages. On the
contrary,more often,they look down upon employees (especially BPO/call center
workers) by paying them peanuts. The monthly salary which a call center employee
working in India gets after slogging for 8 hours,doing graveyard shifts,is less
than what a Burger boy in California makes in a couple of hours and this is the
bare truth. We are nothing but cheap labors to them.
Nevertheless,MNCs have recognized the vast talent pool in India,nurtured it and
cleverly utilized it owing to which we have been able set new benchmarks in the
globe.
However,it would be highly unfair to generalize that all Indian employees
working in MNCs are well paid.With such a huge disparity of wages existing,a
larger part of the work force don't really agree with the report mentioned in
the article.
Posted by:
Lasya
Thursday, November 27, 2008
4
Yes MNC's Are paying more to indians but if you compare their 14 hours d day 6
days a week work schedule and 30 hours a week work in UK you will find that even
if salary is same hourly salary is 3 times more in UK.
days a week work schedule and 30 hours a week work in UK you will find that even
if salary is same hourly salary is 3 times more in UK.
Posted by:
amit
Thursday, November 27, 2008
5
MNCs pay more to Indian staff , but what about the Other job salary, its not
only the IT people who participate in the society thing about others who is
doing other jobs like clerks, and other official works. Did you think that they
are getting enough salary for their work ? Its not good that one sector of
people only growing faster while the remaining part is not...
only the IT people who participate in the society thing about others who is
doing other jobs like clerks, and other official works. Did you think that they
are getting enough salary for their work ? Its not good that one sector of
people only growing faster while the remaining part is not...
Posted by:
shankar
Thursday, November 27, 2008
6
MNCs pay more to Indian staff I some how feel the author was not clear enough in
expressing his thoughts in this article. There is a sense of incompleteness in
the article.
Having said that, coming back to the discussion, Indian MNCs have definitely
trying to acquire talent by positioning and projecting themselves which was and
is necessary because of the growing market and demand for talent. Also, there is
a growing demand in terms of expectations from the Indian counteparts.
While it is debatable wheter Indian professionals are more talented vs their
western counterparts or not and also it is debatable whether Indian counterparts
lack work ethic compared to the western counterparts....Some thing that I can
say after experiencing both the worlds is that on the western side, the expected
velocity from a full time employee is 6 hours a day and exceptions are treated
as exceptions when they need to stretch and there is flexibility to work from
home beyond the regular hours in most cases. This is not the case in India due
to various reasons like lack of infrastructure, security and also organizational
policies.
Taking all these factors into consideration and also the fact that MNCs in India
are still emerging and trying to strengthen themselves, yes, we are at a stage
where MNCs need to position ourselves above average inorder to attract and
acquire the right talent. Like the organizations would like to attract the best
talent and not compromise, so do the candidates want to find a position in the
best MNC.
PS:Currently there is a cost saving of 80 To 60 percent on the fully loaded cost
per resource depending on their role and skill. Salaries and hourly rates in
western countries have been dropping and salaries in India are shooting up. The
cost of operations in India has been increasing by 10 percent almost on a
quarterly and half yearly basis and this might trigger MNCs to start looking at
and exploring other countries for their future operations and we would end up
experience Knowledge Transfers and layoffs in the near future if the trend
continues...
On the lighter side... isn't it Mercer that provides and markets this
compensation data to the MNCs and selling them the idea to use this data to
position themselves better in the industry to attract talent?
expressing his thoughts in this article. There is a sense of incompleteness in
the article.
Having said that, coming back to the discussion, Indian MNCs have definitely
trying to acquire talent by positioning and projecting themselves which was and
is necessary because of the growing market and demand for talent. Also, there is
a growing demand in terms of expectations from the Indian counteparts.
While it is debatable wheter Indian professionals are more talented vs their
western counterparts or not and also it is debatable whether Indian counterparts
lack work ethic compared to the western counterparts....Some thing that I can
say after experiencing both the worlds is that on the western side, the expected
velocity from a full time employee is 6 hours a day and exceptions are treated
as exceptions when they need to stretch and there is flexibility to work from
home beyond the regular hours in most cases. This is not the case in India due
to various reasons like lack of infrastructure, security and also organizational
policies.
Taking all these factors into consideration and also the fact that MNCs in India
are still emerging and trying to strengthen themselves, yes, we are at a stage
where MNCs need to position ourselves above average inorder to attract and
acquire the right talent. Like the organizations would like to attract the best
talent and not compromise, so do the candidates want to find a position in the
best MNC.
PS:Currently there is a cost saving of 80 To 60 percent on the fully loaded cost
per resource depending on their role and skill. Salaries and hourly rates in
western countries have been dropping and salaries in India are shooting up. The
cost of operations in India has been increasing by 10 percent almost on a
quarterly and half yearly basis and this might trigger MNCs to start looking at
and exploring other countries for their future operations and we would end up
experience Knowledge Transfers and layoffs in the near future if the trend
continues...
On the lighter side... isn't it Mercer that provides and markets this
compensation data to the MNCs and selling them the idea to use this data to
position themselves better in the industry to attract talent?
Posted by:
Evangelist
Wednesday, November 26, 2008
7
Indian resources are more talented & persuasive but they are not compensated
accodingly.They do not get the added benefits & facilities compared to the
US/UK/European market.MNC's extract much more work from Indians with comparison
to the pay.While conducting the Comp Survey all benefits & facilities should
be factored in to arrive at a conclusion.Indian Employees deserve high salaries.
accodingly.They do not get the added benefits & facilities compared to the
US/UK/European market.MNC's extract much more work from Indians with comparison
to the pay.While conducting the Comp Survey all benefits & facilities should
be factored in to arrive at a conclusion.Indian Employees deserve high salaries.
Posted by:
Swaroopa Pattnaik
Wednesday, November 26, 2008
8
wrong comarision
Posted by:
Gajendra
Wednesday, November 26, 2008
9
Writer should be mindful when talking about indian employees. They dont have any
shcheduled long leave even in MNC's in india and compared to European/US/UK
employees , indian employee dont get all othre leverages from company other than
salary and a few other stuffs. Even if its MNC , but for ur sake of assurance ,
its in India , where managers think their employees as their slaves . If MNC's
pay well in terms of salary , they earn much more than they could from some
offices in Europe or US as the currency factor reduces the investment and profit
ratio. So , yes they pay more than indian firms but thats not even sufficient
enough because for less our work and with all facilities , US/Eropean/UK
employees are getting many times more than indian emlployees for the same kind
of job and profile.............
I WOULD SAY , BE MINDFUL , WHEN TAKING INDIANS INTO CONSIDERATION.......U CANT
PREDICT , HOW MUCH PRESSURE PEOPLE HAVE IN INDIA JUST BECAUSE OF THE CULTURAL
DIFFERENCES AND THE UNSYSTEMETIC SYSTEM OF COUNTRY...
shcheduled long leave even in MNC's in india and compared to European/US/UK
employees , indian employee dont get all othre leverages from company other than
salary and a few other stuffs. Even if its MNC , but for ur sake of assurance ,
its in India , where managers think their employees as their slaves . If MNC's
pay well in terms of salary , they earn much more than they could from some
offices in Europe or US as the currency factor reduces the investment and profit
ratio. So , yes they pay more than indian firms but thats not even sufficient
enough because for less our work and with all facilities , US/Eropean/UK
employees are getting many times more than indian emlployees for the same kind
of job and profile.............
I WOULD SAY , BE MINDFUL , WHEN TAKING INDIANS INTO CONSIDERATION.......U CANT
PREDICT , HOW MUCH PRESSURE PEOPLE HAVE IN INDIA JUST BECAUSE OF THE CULTURAL
DIFFERENCES AND THE UNSYSTEMETIC SYSTEM OF COUNTRY...
Posted by:
AJIT SINGH
Wednesday, November 26, 2008
10
I think the writer has to go for a comparative study of compensation ( rather it
is called CTC compensation)with referrence to European countries - as mainly the
MNC's are from European countries only & there even labour charges are very
high w.r.t hourly basis & even qualified engineers,technocrats & lawyers
- they charge as per hourly basis after stipulated 6 hrs working with 5 days
week - where as these things are not prevailing in India.When we are going to
talk about professionalism - we should be professioanl in all things not only in
salary.
An apple only can be compared with an apple
is called CTC compensation)with referrence to European countries - as mainly the
MNC's are from European countries only & there even labour charges are very
high w.r.t hourly basis & even qualified engineers,technocrats & lawyers
- they charge as per hourly basis after stipulated 6 hrs working with 5 days
week - where as these things are not prevailing in India.When we are going to
talk about professionalism - we should be professioanl in all things not only in
salary.
An apple only can be compared with an apple
Posted by:
Kaushik nandy
Wednesday, November 26, 2008
11
They also fire people more:)
Posted by:
girish
Wednesday, November 26, 2008
12
yes indians deserve to get more, but still not evryone is getting due to
extraordianry high level skill sets they have and no. of hours they can put in
to acheive their target.
extraordianry high level skill sets they have and no. of hours they can put in
to acheive their target.
Posted by:
Amit kumar
Wednesday, November 26, 2008
13
Why all reports raise their hand only on our salary. they should not avoid our
work. Indians are much more laborious than others.
work. Indians are much more laborious than others.
Posted by:
Mrityunjay
Wednesday, November 26, 2008
14
I don't understand how, because US/UK guys gets salary in terms of dollor/Euro,
much higher then the indian salary.
much higher then the indian salary.
Posted by:
Amit
Wednesday, November 26, 2008
15
so the indians are the lucky ones.. i thought it to be vice versa..
Posted by:
manas
Wednesday, November 26, 2008
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