Congratulations, if you got the much-awaited promotion. We hope it came with a good appraisal. A report by staffing firm foundit suggests that 62 percent of Indian employees got a salary hike for the year despite the uncertainties and cautious sentiments observed in the job market at the moment.
The survey shows sadly over 30 percent of employees in each experience level category did not receive any appraisals this year.
Sekhar Garisa, CEO, foundit (previously Monster APAC & ME), said the Appraisal Trends Report reveals that companies are looking at additional and alternative variables to salary hikes, such as ESOPs, bonuses, and even promotions.
As per the report, the appraisal distribution across different experience levels paints a diverse picture this year. Salary hikes for entry-level professionals (0-3 years experience) reflected an interesting trend, with 62 percent of total respondents claiming that they did not receive any appraisal this year. Ten percent of them received a 5-10 percent hike, while 9 percent secured a 0-5 percent salary raise.
Associate (4-6 years) level employees fared slightly better with 17 percent having secured a 5-10 percent hike, and 15 percent got a 10-15 percent salary raise. Moving up the ladder, 23 percent of mid-senior (7-10 years) level employees received an increment in the 5-10 percent range, while those in leadership roles (+16 years) emerged as the top beneficiaries, with an impressive 19 percent receiving increments in the 5-10 percent range, according to the foundit report.
The survey highlights that intermediate employees stood out as the top beneficiaries in terms of the maximum appraisal percentage, with 13 percent of them receiving a hike exceeding 20 percent surpassing even the senior level and leadership positions.
Among sectors, healthcare and BPO/ITES sectors offer salary hikes to over 90 percent of employees. Within healthcare, 29 percent of employees got a 5-10 percent hike while 27 percent of employees got a 10-15 percent hike. In the BPO/ITES industry, 49 percent of employees secured a 0-5 percent appraisal in FY23, whereas 26 percent got a 5-10 percent raise.
In the BFSI industry, 20 percent of employees received a 10-15 percent hike, and 30 percent a 5-10 percent increment. IT showcased a similar trend, with 30 percent getting a 10-15 percent hike and 21 percent a 5-10 percent appraisal. Eighty-two percent of respondents employed in IT secured a pay raise this year. Moreover, 20 percent of respondents employed in the engineering/construction industry secured a salary hike exceeding 20 percent.
Another thing that the report points out is 49 percent of employees who did not receive appraisals were incentivised with Employee Stock Ownership Plans (ESOPs) and bonuses by their employers, which are alternative forms of recognition and rewards. Also, 20 percent of those without hikes were offered promotions indicating that career growth opportunities are being offered independently of immediate financial rewards.
However, the foundit survey shows that 76 percent of employees are willing to consider job change based on the current appraisal survey. Among those willing to explore new opportunities, 26 percent stood out as they fell within the 5-10 percent increment range, marking the highest percentage in this particular category.
The survey also reveals that individuals still prioritise work model flexibility as an important factor when considering a job change.
