According to A recent article in The Economic Times which talks about the high probability of Broking Companies giving out generous increments. Bonuses to top employees, where bonuses at some of the leading companies could range from three to seven months of additional pay. Average increments could be in the range of 10-15%, with high performers, especially in technology and product development roles, likely taking home 30-40% more
MUMBAI: Brokerage executives and the thousands of bright young people who run Mumbai's buzzing dealing rooms and research, sales and product desks will likely get record incentive payouts and bonuses this year, matching the handsome rewards for both D-Street veterans and recent converts to the equity culture through a period of unprecedented gains for India's entire risk-asset spectrum.Bonuses at some of the leading companies could range from three to seven months of additional pay, said top executives. Average increments could be in the range of 10-15%, with high performers, especially in technology and product development roles, likely taking home 30-40% more, they said.
"Payouts across the industry are expected to be attractive this year," said Niren Srivastava, group CHRO, Motilal Oswal Financial Services. "We have been on a growth path and that has continued in FY24, too."Officials said the focus is on ring-fencing manpower across levels - especially high-potential talent. As the Nifty 50 stays north of 22,000 levels despite recent corrections, attrition in the industry is at an elevated level of 40-60%.
To be sure, FY24 has proven to be exceptional for the broking industry, which witnessed an average growth of 30% in revenues and about 25% expansion in net profits, said Dhiraj Relli, MD and CEO, of HDFC Securities. "We anticipate a 10-12% increment in the industry, with an expected bonus range of 25-30%," Relli said.Since April 1, India has witnessed the opening of 58.5 million demat accounts, the highest recorded in any financial year. Additionally, in the current fiscal year, 70 companies have collectively raised 60,000 crore from public issues, compared with 37 companies garnering 52,000 crore in the entire preceding year.
"The market is hot, and we have added one lakh active accounts every month over the last three months. Our focus is on retention of top talent who would be adequately rewarded this fiscal," said Vikrant Birajdar, CHRO at discount broking platform 5paisa.com.
Pressure to Retain Talent
"We have also rolled out ESOP plans across levels. Higher bonuses, retention bonuses, and performance- or tenure-linked stock options will also be paid out to critical talent and key people in the organisation."
Most brokerages are in the process of finalising their increments and bonuses for the fiscal and will announce the new packages and bonus payouts starting mid-April.
While larger companies with a bigger employee base are likely to pay average increments of 11-12%, some of the smaller entities will pay about 14-15% to retain critical talent."As per our survey for broking companies, we see 60% of them are optimistic of getting salary hikes exceeding 10% and 30% are confident of seeing hikes in high single digits" said Aditva Naravan Mishra, CEO. Ciel HR Services.
"As retail investors have been participating more in the capital markets and the IPO markets are reviving, we see a gradual rise in hiring in this industry, led by the new-age fintech companies like Groww, 5Paisa and Zerodha. This phenomenon puts pressure on the industry players to retain their talent by giving attractive salary hikes."Read more at:
https://economictimes.indiatimes.com/jobs/hr-policies-trends/broking-companies-likely-to-give-out-generous-increments-bonuses-to-top-talent-across-the-board/articleshow/108552478.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst