59% Indian Firms Will Give Salary Hike In 2021; Only 4% Will Fire Employees (Survey Results)
Post the sharp decline in economy due to the pandemic, economy is now on a recovery path and the fact that a study has shown that 59 per cent of companies in India intend to give salary increments to their employees in this year, is a reflection of the same.
The market with this impressive growth rate is expected to become stable and alongwith strengthening the workforce, companies shall also relook at their business continuity strategy as per the staffing company Genius Consultants ’10th Hiring, Attrition and Compensation Trend 2021-22?.
59% Indian Firms Will Give Salary Hike
As per the study, 59 percent of companies said that an increment between 5-10 percent is on the cards whereas 20 percent think that the increment shall be less than 5%. Remaining 21 percent think that there will be no pay rise in 2021.
The 1200 companies that were surveyed in the month of February and March include sectors such as banking and finance, construction and engineering, education/teaching/training, FMCG, hospitality, HR solutions, IT, ITES and BPO, logistics, manufacturing, media, oil and gas, pharma and medical, power and energy, real estate, retail, telecom, auto, and ancillary.
A substantial 43 per cent of the participants said that there are openings for new recruitments while 41 percent have indicated replacement hiring. Remaining11 per cent of the respondents believe that there shall be no fresh hiring this year.
As per the zones and new job opportunities, southern market with 37 per cent hiring will lead and be followed by the western zone with 33 per cent.
Plans to Increase The Workforce & Only 4% Will Fire Employees
- 21 percent to increase the workforce by more than 15 percent
- 26 percent said that they will add 10-15 percent
- 30 percent said that they will add 10 percent
- 23 per cent said that there will be no hiring
Only 4 percent of respondents said lay-offs are on the cards in 2021 when it comes to the manpower downsizing.
The study also revealed that the jobs at junior levels shall be more prone to attrition than middle and senior management. Also, it said that the western zone shall see the highest attrition this year.
The study also revealed that there are concerns about the employee’s productivity as more and more firms have embraced the new working model of work from home, remote working or hybrid working style.
In the terms of productivity or commitment:-
- 33 percent of respondents said that there is no change in productivity
- 37 percent indicated that productivity fluctuates
The study reveals that be a mix of women employees of around 51 per cent and male of around 54 per cent will be there in workforce and there will be more hiring of mid-level candidates followed by people with lesser experience and freshers.