Indian Employees Can Get Upto 95% More Salary Hike Compared To 2020: Find Out Why? (Survey Report)
After a blip of the pandemic, organizations all over the world are getting back to their business as usual. And as the businesses are coming back to normal, the atmosphere around increment markets is warming up.
The second phase of Deloitte’s Workforce and Increment Trends survey 2021 is dedicated to India-specific insights on rewards, the impact of COVID-19 on benefits policies, and the return to work strategies of organizations. The first phase was launched in July 2021. In this edition, more than 450 organizations spread across seven sectors and 24 sub-sectors participated.
According to the survey, increments in 2022 would reach the pre-pandemic levels of 2019.
Increments are also coming back to normal
In 2021, around 92% of companies in India gave an increment at an average of 8% compared with only 4.4% in 2020 where just 60% of companies had extended a pay hike.
With a healing economy and improving confidence, estimates reveal that the average increment for 2022 is expected to increase to 8.6%.
The survey also said that organizations will continue to differentiate pay increases by skills and performance. Top performers can expect about 1.8 times the increments given to average performers, the survey noted.
IT sector leads the increment arena.
Survey also highlighted the sectors which will be leading in increments in 2022. In the upcoming year, the Information Technology (IT) sector is projected to offer the highest increments, followed by the Life Sciences sector.
Among all the sectors surveyed IT is the only sector that is expected to extend double-digit increments. Digital/e-commerce companies might also give some of the highest increments.
While IT is leading the pack, Retail, hospitality, restaurants, infrastructure, and real estate companies continue to project some of the lowest increments which are in line with their business dynamics.
According to the survey, approximately 12 percent of employees were promoted in 2021, as compared to 10 percent in 2020. Almost 12 percent of companies have updated their bonus or variable pay plans, bringing them in line with the changing priorities.
While increments are making huge strides, companies are also on a hiring spree. 78 percent of companies stated that they have started recruiting have returned to pre COVID-19 level.