by Apparel Resources News-Desk
16-April-2019 | 3 mins read
Professionals after the tax saving exercise and companies after closing the books in March (as the Financial Year ends) are now ‘struggling’ on the increment issue. Beginning of the new financial year is also the time for most of the textile and apparel companies to announce increment for their staff. But as usual, this year too the overall industry has not given much hike as it is passing through the difficult phase.
Apparel Resources explored the rate of increment across the country by talking to factory owners, heads of associations, HR Managers and professionals in various departments. It was observed that more or less, most of the apparel manufacturers are giving around 5 per cent increment to their mid-level professionals. Apart from a few exceptional cases, the overall maximum hike is given around 10 per cent.
“Trend of increment is very poor. Jobs are shrinking and even new joining are on the downsize of salary,” shared GK Sood, MD, Universal Management Consultants, Gurgaon.
Though the factory owners accepted that this is a quite individual decision and even depends on the employee-to-employee, but overall business is challenging, and so there is nothing much in this regard. “Few top companies which are consistently performing well have given a maximum hike of 8 to 10 per cent. There are not many jobs in the market and whatever jobs are there, are not offering very good hike. So factory managements feel that professionals don’t have many options to switch their jobs and as such are not much bothered to give them higher hikes,” shared the owner of industry focused placement agency in Delhi-NCR.
“5 per cent is the thumb rule, so despite not doing well, we have given this hike to our staff,” shared the HR Manager of a well-known apparel export house in Noida. The HR Manager accepted that almost similar kind of hike was witnessed last year also and as such it might have a negative impact on the motivation level of the professionals. But they do know that overall industry is not doing well, so there is no other way out.
Some of the companies are still in the process to make final announcements in this regard, though they are also echoing the same voice. “We are expecting some orders by April end, so whatever increment will be there we will pay with arrears,” shared another HR head of an apparel company.
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