Technoglitch
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Telecom companies, already burdened with debt to pay for airwaves and capital expenditure, stare at a potential price war in data business with the imminent entry of Jio in the market. Given that, companies can ill afford a ballooning wage bill, industry experts said.
Wages account for about 10% of a telecom firm's operating expenditure. Aon Hewitt's salary increase survey for 2014-15 estimated an average salary hike of 9.9% in telecom. Executives of the top three companies told ET that Reliance Jio Infocomm has offered salary hikes of up to 60% to poach some of their staff members. The increments will take effect from July 1.
With Mukesh Ambani's Jio yet to launch, though, some workers already want to return to their previous companies, executives said.
"We have people reaching back. It has now been around four-five months since the attrition started and the incidence of dial back, and discussions about career over pay are being reopened," said Ashok Ramachandran, head of human resources at Vodafone India, India's no. 2 carrier.
Reliance Jio offers upto 60% salary hike to poach Airtel, Vodafone, Idea employees | ET Telecom
Wages account for about 10% of a telecom firm's operating expenditure. Aon Hewitt's salary increase survey for 2014-15 estimated an average salary hike of 9.9% in telecom. Executives of the top three companies told ET that Reliance Jio Infocomm has offered salary hikes of up to 60% to poach some of their staff members. The increments will take effect from July 1.
With Mukesh Ambani's Jio yet to launch, though, some workers already want to return to their previous companies, executives said.
"We have people reaching back. It has now been around four-five months since the attrition started and the incidence of dial back, and discussions about career over pay are being reopened," said Ashok Ramachandran, head of human resources at Vodafone India, India's no. 2 carrier.
Reliance Jio offers upto 60% salary hike to poach Airtel, Vodafone, Idea employees | ET Telecom
