New Delhi |HL
Indians may be the happiest employees according to the Edenred-Ipsos Barometer, and there’s a reason for that, at least in some sectors. In the past 10 years, the cumulative salary bill at BSE 500 companies has grown at a compounded annual growth rate of 18%, faster than the 14% that revenue and operating profit have each risen by.
Export-oriented sectors like IT and pharma have witnessed the sharpest surge in employee costs. A few sectors such as FMCG, banks and finance have, however, seen the reverse.
In the BSE 500 universe as a whole, returns per employee operating profi t per rupee of expenditure on employees has dropped to Rs 2.2 in FY16 from Rs 2.9 in FY07. And, while economic growth is gathering momentum, the expert view is that the trend may persist for a while.
Inputs:ET
