According to a report by foundit, which previously was Monster.com, the majority of entry-level professionals with zero to three years of experience did not receive any appraisal this year, while only a small percentage (10 percent) received a salary increase between 5-10 percent.
foundit Appraisal Trends Report Reveals 17% Employees Received 5-10% Increase
The situation improved slightly for associates with 4-6 years of experience, with 17 percent of them receiving a 5-10 percent raise, and 15 percent getting a 10-15 percent increase. Moving up the experience ladder, 23 percent of mid-senior employees (7-10 years of experience) received a raise in the 5-10 percent range. However, the top beneficiaries were leadership positions (over 16 years of experience) with an impressive 19 percent of them receiving increments in the 5-10 percent range.
Surprisingly, 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. It’s worth noting that over 30 percent of employees in each experience level category did not receive any appraisals this year.
The report indicates that the Healthcare and BPO/ITES sectors led in salary hikes this year. In healthcare, 29 percent of employees received a 5-10 percent hike, while 27 percent received a 10-15 percent increase. In the BPO/ITES industry, 49 percent of respondents secured a 0-5 percent appraisal, and 26 percent received a 5-10 percent raise.
BFSI Industry Handed Out Good Appraisals
The BFSI industry also performed well in appraisals, with 20 percent of employees receiving a 10-15 percent hike, and 30 percent getting a 5-10 percent increment. The banking sector showed improved performance across key metrics, with credit growth estimated at ~15 percent over fiscal 2023 and 2024.
The IT industry followed a similar trend, with 30 percent of employees receiving a 10-15 percent hike and 21 percent getting a 5-10 percent appraisal. Interestingly, 82 percent of IT employees secured a pay raise this year. Additionally, 20 percent of respondents employed in the Engineering/Construction industry received a salary hike exceeding 20 percent.
In the FY 2022-2023 survey, 76% of employees were open to job changes. 26% fell within the 5-10% increment range, the highest in this category. Employers incentivized non-appraised employees with 49% receiving ESOPs and bonuses, and 20% offered promotions. 38% were satisfied with their increments, and 52% found the appraisal process fair.
