It seems that the good times are likely to make a comeback as the biggest pay packet raises are expected during the upcoming appraisals in 2022.
Gear-Up For Better Salary Hike This Year
In the coming four-five years, the majority of employees in Indian startups are expected to get better salary hikes.
The average hikes are likely to be in the range of 12-15 percent, as per the experts.
It is among the highest across sectors, spurred by robust growth, record investments and new-age companies that want to retain top tech talent.
Not only that, now several new-age companies are actively considering rolling out 15-25 percent average hikes.
The top performers are getting more as the employers are facing mounting challenges of attracting and retaining employees.
Why Would This Happen?
Partner at consultancy firm Deloitte India, Anandorup Ghose said, “We see tech-based early-stage companies improving their pay increases this year; we expect it to go back to four-five years ago when the average increment in this sector was to the tune of 12-15 per cent,”.
Another partner human capital solutions at HR services firm Aon India, Roopank Chaudhary said that this time salary increments will be the highest since 2015-16.
Further adding that “Attrition now is significantly higher than then,” so the firms are opening or purse strings to retain key employees.
Not only that, the Startups like Shiprocket, UpGrad, Simplilearn, CredAvenue, HomeLane, NoBroker and CashKaro also confirmed that the average hikes in 2022 are likely to be higher than pre-pandemic levels.
Retaining Top Performers
Basically, Startups growth strategy hinges on retaining the top employees.
So, high performers are most likely to get up to 75 per cent increases.
For those who are at relatively low salary levels, the remuneration could even double.
Besides this, the startups are planning to roll out higher bonuses, retention bonuses, and performance or tenure-linked stock options to their employees.
It seems that startups are splurging on staff as they are flush with funds after raising $36 billion in 2021.
The CEO of Shiprocket, Saahil Goel said, “Given the robust growth of our industry due to promising macroeconomics, tremendous headroom for growth and Covid tailwinds in the last few years, y-o-y monetary compensation increases have been on an upswing,”.
The e-commerce shipping and enablement platform has budgeted over 15 per cent hike to the wage bill for the upcoming appraisals.
Basically, this is 5-6 percent ahead of the market consistently, and sustained business impetus has led to an increased bonus pool for staff.
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