Indian Employees Will Get 65% More Appraisal In 2021; These Sectors Will Pay Highest Salaries
Amid faster-than-expected economic recovery, revival in business as well as consumer confidence, according to a survey Indian companies are expected to give an average increment of 7.3 per cent to employees this year as increment budgets have increased.
Deloitte Touche Tohmatsu India LLP (DTTILLP) said, while speaking on average increment, that this year it will be higher than 4.4 per cent from 2020 but lower than 8.6 per cent in 2019.
Many Companies To Give Double Digit Increment
As compared to 60 last year, this year 92 per cent companies that participated in the survey plan to give an increment according to a survey which is a B2B India-specific survey, covered around 400 organisations spread across seven sectors and 25 sub-sectors.
Compared to only 12 per cent in 2020, 20 percent companies this year plan to give a double digit increment. A third of 60 percent companies that gave an increment last year did it through off-cycle increments.
IT, Life Sciences, Digital & E-commerce Are Sectors With Highest Increments
Information technology (IT) as well as life sciences, according to the survey, are the sectors expected to give the highest increments. Sectors like manufacturing as well as other services sectors shall continue to offer relatively lower salary increment. Average increment for all sectors, other than life sciences, shall be less in 2021 as compared to 2019.
With the sectors like hospitality, real estate, infrastructure, and renewable energy predicted to offer least increments, it will be the sectors like ecommerce and digital which shall offer double-digit average increments.
2020 has been an anomalous year, hence excluded from year-on-year analysis, with 2019 as the base year for comparison.
The average increment in 2021 shall be 7.3, this is considerably lower than 8.6 per cent in 2019.
Considering affordability and sustainability of fixed cost increases, organisations are managing compensation budgets responsibly. Increased adoption of technology in HR, continued investment in learning and development and employee wellness are the top three focus areas and priorities in 2021 for most organizations.