As many as 62 per cent corporate employees of various years of experience and across industries received salary hikes this year, said a report on Tuesday, marking a hopeful note despite an uncertain job market.
As many as 13 per cent professionals in non-metro cities received hikes exceeding 20 per cent, said the ‘Appraisal Trends Report’ by foundit (previously known as Monster). In metro cities, 11 per cent of professionals received the same increment.
The report said the findings highlight growing opportunities and rewards offered to talent in non-metro areas as organisations move out of large urban spaces to save costs and access talent.
Associate-level professionals received the highest hikes this year, while over half of entry-level employees receive no appraisal.
As per the report, the appraisal distribution across different experience levels paints a diverse picture. Salary hikes for entry-level professionals (0-3 years of experience) reflected an interesting trend, with 62 per cent of respondents claiming that they did not receive any appraisal this year. As many as 10 per cent of them received a 5-10 per cent hike, while 9 per cent secured a 0-5 per cent salary raise.
Associate-level employees (4-6 years) fared slightly better, with 17 per cent getting a 5-10 per cent hike, and 15 per cent a 10-15 per cent raise. Moving up the ladder, 23 per cent of mid-senior level employees (7-10 years) received an increment in the 5-10 (7-10 years) range. As many as 19 per cent executives in leadership positions (more than 16 years of experience) received increments in the 5-10 per cent range.
Intermediate employees were the top beneficiaries in terms of the maximum appraisal percentage, with 13 per cent of them receiving hikes of more than 20 per cent – more than even the senior level and leadership positions.
It is notable that more than 30 per cent of employees in each experience level category did not receive appraisals this year.
“A majority of Indian employees have secured a positive appraisal this year despite cautious sentiments exhibited by businesses today. The foundit Appraisal Trends Report reveals that companies are also looking at additional and alternative variables to salary hikes, such as ESOPs, bonuses, and even promotions,” said Sekhar Garisa, chief executive officer of foundit.
“White-collar employees in non-metro cities have also secured encouraging pay hikes. Today, several factors, such as workplace culture, skilling opportunities, and team-leading opportunities, highly influence employee morale,” he said.
Tech sectors lead
Healthcare and BPO/ITES sectors offered salary hikes to more than 90 per cent of employees this year. A majority of employees in healthcare and BPO/ITES industries got salary hikes. In healthcare, 29 per cent employees got a 5-10 per cent hike and 27 per cent got a 10-15 per cent hike.
In the BPO/ITES industry, 49 per cent employees secured a 0-5 per cent appraisal in FY23 and 26 per cent got a 5-10 per cent raise.
As many as 20 per cent BFSI industry employees received 10-15 per cent salary hikes and 30 per cent 5-10 per cent hikes.
The IT sector showcased a similar trend, with 30 per cent employees getting 10-15 per cent hikes and 21 per cent 5-10 per cent hikes. It is interesting to note that 82 per cent respondents employed in IT secured a pay raise this year. As many as 20 per cent of respondents in the engineering/construction industry secured salary hikes of more than 20 per cent.
As many as 76 per cent of employees were willing to consider a job change. Among those willing to explore new opportunities, as many as 26 per cent of respondents were those whose increments were in the 5-10 per cent increment range.
About 49 per cent of employees who did not receive salary hikes were compensated with ESOPs and bonuses, said the report.