Salary Appraisal Of Indians Will Be Lowest In 10 Years; Startups, Ecommerce Will Give Highest Appraisal
We all are aware of the slow economic growth and sometimes none, going on amidst the country. Not just the GDP but also jobs and related parameters are getting affected due to this economic slowdown. Who is to say whom to blame.
Recently, in a survey provided by the Aon Annual Salary Increase Survey on Tuesday, it can be seen that India Inc. is projected to offer an average pay hike of 9.1% to their employees in 2020, which is the lowest since 2009.
Salary Hike Figure in 2020 Worst in 20 Years
As per the Annual Salary Increase Survey on Tuesday, Indian companies have witnessed 6.6% salary hike, complying to the global economic meltdown. In the last appraisal season, the average pay hike was 9.3%.
It is found that since 2009, the 2020 figure will be the lowest in 20 years.
Aon, a leading human resource and consulting firm conducted a comprehensive study across India and analysed data of more than 1,000 firms from over 20 sectors. The survey it has conducted reflects the economic environment in the country.
It has been found out that India’s economy grew at a six-year low of 4.5% in the September quarter.
- In December, the RBI slashed the economy growth outlook for 2019-20 from 6.1% earlier to 5%.
- The Centre for Monitoring Indian Economy reported a 9.7% urban unemployment rate in January 2020 amid reports that companies have reduced their headcount in 2019-20.
- The attrition rate among Indian employees bumped up a bit from 15.8% in 2018 to 16.1% in 2019.
- The economic growth of a country has a direct bearing on salary growth.
- Before 2011, salary growth was in the range of 12-15%. However, in the last few years, it is showing high single-digit growth.
- Startups, e-commerce platforms and professional services are expected to offer an average hike of 10%.
- Pharmaceuticals and IT companies will offer 9.9% and 9.6%, respectively.
- The logistics and transport sector with a projected pay hike of 7.6%.
- Hospitality and infrastructure sector projected a pay hike of 8.2% and 8.3% respectively.
- The automotive industry will see the biggest drop—from 10.1% in 2018 to 8.3% in 2020, the survey showed.
Companies in India gave an average pay increase of 9.3% during 2019, reflecting a slowdown in the economy compared to 2018. The projection for 2020 is down by 20 basis points to 9.1%.
Yet, India Inc. will offer a better pay hike than its Asian peers, said Aon. Chinese companies are expected to offer a 6.3% hike, the Philippines 5.8%, Malaysia 5.3%, Singapore 3.8%, Australia 3.1% and Japan 2.4%.
Despite economic challenges in 2019, organizations in India are taking a positive view. Pay increases in India continue to be the highest in the region. A big reason for India’s higher salary increase, as compared to other growing economies, is the high inflation rate and the war for key talent and niche skills