India Inc gives average 8% pay hike in 2021: Deloitte
The survey also highlighted that a double-digit increment is expected from 25% of companies for the year 2022.
India Inc has given an average increment of 8% in 2021, according to a survey conducted by Deloitte. The increment is believed to rise to 8.6% with economic recovery and confidence. The survey titled Workforce and Increment Trends survey 2021 showed that an average 8% increment was given by 92% of companies in 2021. In 2020, only 60% of companies had given a salary hike of 4.4%. The survey also highlighted that a double-digit increment is expected from 25% of companies for the year 2022.
Survey
In July 2021, Deloitte launched its Workforce and Increment Trends survey. The survey was for seasoned HR professionals and had participation from more than 450 organisations spread across seven sectors and 24 sub-sectors. A super the survey, employees received pay hikes based on skills and performance. The top performers received 1.8 times the increments given to average performers.
Anandorup Ghose, partner, Deloitte Touche Tohmatsu India LLP said, “A higher increment is projected for most companies in 2022 compared to 2021, we continue to operate in an environment where COVID-19 related uncertainty persists, making it harder for companies to forecast. Some of the survey respondents have also just closed their 2021 increment cycle so 2022 increments are a fair distance away for them.”
Findings
Over 78% of companies stated that they have started recruiting at the same pace as pre-Covid times.
IT sector is expected to give the highest increments, followed by the life sciences sector, according to the survey.
IT is the only sector that is expected to extend double-digit increments with some digital/e-commerce companies planning to give some of the highest increments.
The sectors that are projecting the lowest increments are retail, hospitality, restaurants, infrastructure, and real estate companies.
In 2021 approximately 12% of employees were promoted, as compared to 10% in 2020.
Over 12% of companies have updated their bonus or variable pay plans to align their rewards structures with the changing priorities.