In what could be seen as a silver lining for employees, as many as 50% of the organisations have reported no change in the planned salary hike budgets despite the headwinds that the novel-coronavirus pandemic has brought.
In what could be seen as a silver lining for employees, as many as 50% of the organisations have reported no change in the planned salary hike budgets despite the headwinds that the novel-coronavirus pandemic has brought. Just 36% of the organisations, globally have opted for a decline in increment budgets, news agency PTI reported, quoting a survey report by KPMG. With coronavirus bringing in a plethora of uncertainties along with it, firms have introduced temporary wage cuts and froze hiring to foot the bill. Along with this, the report noted that half the firms have deferred or suspended their promotion schedule as well.
Aptly titled, ‘cutting through the crisis’ the survey report noted that a downward trend in promotions across all job levels was observed wherein 33% of organisations admitted to having reduced it The IT and IT-enabled services sector along with life sciences, pharma and retail have refrained from downgrades in the overall promotion cycle, the survey said. However, the picture may not stay that rosy if the situation persists. Around 22% of the organisations might suspend incentives to support their balance sheets.
“Organisations are navigating an unprecedented and challenging time and are collectively at a level-playing ground as none had an upper hand of being better prepared or equipped to deal with the crisis,” said Vishalli Dongrie, Partner and Head, People and Change, KPMG in India. With most organisations now moving to a more liquid and flexible way of working, there is a need for strategies and new operating models for business continuity and workforce management, Dongrie said.
90% of the 315 organisations that participated in the survey had at least one 1 initiative around the week-being of the employees, while some also had as many as 5 initiatives to help employees. On the other hand, another KPMG survey on India’s HR practices in the wake of coronavirus highlighted that around 70% of the organisations in India reported no change in the impact on fixed pay at the non-management and junior management levels.