A recent study has shed light on a heartening revelation: 62 percent of employees received a salary hike this year, defying the prevailing uncertainties in the job market. The findings, emanating from the “Foundit Appraisal Trends Report,” meticulously analyze the appraisal trends for Indian employees during the financial year 2022-2023. Amongst these intriguing findings, it came to light that approximately 13 percent of professionals in non-metro cities were granted a salary hike exceeding 20 percent, while in their urban counterparts, only 11 percent of professionals enjoyed the same increment. Read more career blogs on College49.
A remarkable observation surfaced in the report, accentuating the burgeoning opportunities and rewards bestowed upon individuals in non-metro cities. Organizations, seeking cost-saving measures and access to a larger talent pool, are increasingly migrating away from urban spaces.
Salary Hike
The study further unraveled various insights across different experience levels and industries. For entry-level professionals (0-3 years experience), 62 percent of the respondents attested to receiving no appraisal this year. In contrast, 10 percent were gratified with a 5 to 10 percent hike, and 9 percent received a modest 0 to 5 percent increment.
As the experience level escalated, so did the distribution of salary increments. For Associate level, professionals (4-6 years experience), 17 percent enjoyed a 5 to 10 percent salary hike, and an impressive 15 percent secured a 10 to 15 percent raise. In the realm of mid-senior level professionals (7-10 years experience), 23 percent received an increment in the 5 to 10 percent range. At the pinnacle of the corporate ladder, employees in leadership positions (16+ years experience) also relished a 5 to 10 percent increment.
Surprisingly, intermediate employees emerged as the top beneficiaries, reveling in the maximum appraisal. A significant 13 percent of them experienced a salary hike exceeding 20 percent, surpassing even the senior level and leadership positions. However, it’s noteworthy that 30 percent of employees across all experience levels did not receive any appraisal this year.
The study also delved into industry-specific insights. In the healthcare sector, 29 percent of employees secured a 5 to 10 percent hike, while 27 percent were gratified with a more substantial 10 to 15 percent raise. In the BPO/ITES industry, 49 percent of employees received a modest 0 to 5 percent appraisal, and 26 percent enjoyed a 5 to 10 percent increment.
Meanwhile, in the BFSI industry, 20 percent of employees experienced a respectable 10 to 15 percent hike, with 30 percent receiving a 5 to 10 percent increment. The banking sector exhibited commendable growth, estimating a 15 percent upturn in the fiscal year 2023-24. Similarly, the IT sector showcased similar trends, with 30 percent of employees enjoying a 10 to 15 percent hike, and 21 percent experiencing a 5 to 10 percent raise. Remarkably, a staggering 82 percent of respondents employed in the IT sector received an appraisal this year. In the Engineering/Construction field, 20 percent of respondents received a salary hike exceeding 20 percent.
The study also touched upon employees’ willingness to explore new opportunities. A staggering 76 percent expressed their openness to changing jobs. Amongst this cohort, 26 percent had received a 5 to 10 percent increment.
Interestingly, employees who chose to stay in their current roles attributed it to team-leading opportunities, a thriving office culture, and better learning prospects. A significant factor influencing job changes was work model flexibility, prioritized by employees according to the survey.
Notably, 49 percent of employees who did not receive appraisals were incentivized by their employers with alternative forms of recognition and rewards, such as Employee Stock Ownership Plans (ESOPs) and bonuses. Additionally, 20 percent of employees who did not receive a salary hike were awarded promotions, indicating ample career growth opportunities. Impressively, 38 percent of respondents were content with their appraisals, feeling that they met their expectations. The appraisals were considered fair by 52 percent of the respondents, a testament to the employers’ conscientiousness in the appraisal process.
