In a recent survey conducted by staffing firm foundit, it was revealed that despite economic uncertainties, 62% of Indian employees received a salary hike this year. This statistic might seem like a reason to celebrate, but the survey delves deeper to uncover some surprising trends.
The Appraisal Trends Report, as per Sekhar Garisa, CEO of foundit, highlighted that companies are now exploring alternative methods of recognizing their employees' efforts. Alongside traditional salary hikes, organizations are turning towards Employee Stock Ownership Plans (ESOPs), bonuses, and promotions.
As per the report, the appraisal distribution across different experience levels paints a diverse picture this year. Salary hikes for entry-level professionals (0-3 years experience) reflected an interesting trend, with 62% of total respondents claiming that they did not receive any appraisal this year. 10% of them received a 5-10% hike, while 9% secured a 0-5% salary raise.
Associate (4-6 years) level employees fared slightly better with 17% having secured a 5-10% hike, and 15% got a 10-15% salary raise. Moving up the ladder, 23% of mid-senior (7-10 years) level employees received an increment in the 5-10% range, while those in leadership roles (+16 years) emerged as the top beneficiaries, with an impressive 19% receiving increments in the 5-10% range, according to the foundit report.
Interestingly, the healthcare and Business process outsourcing and Information Technology Enabled Services sectors emerged as the frontrunners in offering appraisals, benefiting over 90% of their employees. Among healthcare workers, 29% got 5-10% hikes and 27% enjoyed a 10-15% raise. Meanwhile, in the BPO/ITES sector, 49% received 0-5% appraisals, while 26% saw a 5-10% increase.
In the Banking, Financial Services, Insurance and IT industries, employees saw appraisals in the 5-15% range. A notable 82% of those working in IT experienced a pay raise. Even the engineering/construction industry showcased growth, with 20% enjoying hikes exceeding 20%.
Despite these promising numbers, the survey suggests that many employees are still on the lookout for new opportunities. A surprising 76% of respondents said they would consider changing jobs based on their current appraisal. Within this group, 26% fell within the 5-10% increment range, showcasing the highest percentage contemplating a job switch.
The survey also highlighted that work model flexibility remains a top priority for individuals when considering a job change. This indicates that while financial rewards matter, the overall work environment and benefits package play a crucial role in retaining and attracting talent.
In conclusion, the foundit survey emphasizes the evolving nature of employee recognition. While salary hikes remain a significant factor, companies are innovating by introducing ESOPs, bonuses, and promotions. The data also underlines the dynamic job market, where a considerable number of employees are open to exploring new opportunities driven by various factors including appraisals and work flexibility.