Despite the current low and tumultuous nature of the job’s market, a recent study showed that a whopping 62 percent of employees received salary hikes this year. Notably, 13 percent of professionals in non-metro cities experienced a hike that exceeded 20 percent, while their urban counterparts trailed closely behind at 11 percent, the ‘foundit Appraisal Trends Report’ stated. It further showed how organisations are now shifting away from urban realms to tap into an expansive talent pool.
The report analysed appraisal trends for Indian employees during the financial year 2022-2023. The report highlights the increasing opportunities and rewards offered to people in non-metro cities, as organisations are moving away from urban areas to save costs and tap into a larger talent pool.
Appraisals based on experience levels
Looking at different experience levels, the report reveals that 62 percent of entry-level professionals (0-3 years of experience) did not receive any appraisal this year, while 10 percent received a 5 to 10 percent hike, and 9 percent received a 0 to 5 percent hike. For Associate level professionals (4-6 years experience), 17 percent received a 5 to 10 percent hike, and 15 percent got a 10 to 15 percent raise. At the mid-senior level (7-10 years experience), 23 percent received an increment in the 5 to 10 percent range, and 19 percent of employees in leadership positions (16+ years experience) received a 5 to 10 percent increment.
Interestingly, intermediate employees were the top beneficiaries, with 13 percent of them receiving over 20 percent hike, surpassing senior-level and leadership positions. On the other hand, 30 percent of employees in each experience level category did not receive any appraisal this year.
IT top sector appraisal-wise
The report also highlights industry-specific trends. In the healthcare industry, 29 percent of employees received a 5 to 10 percent hike, and 27 percent received a 10 to 15 percent hike. In the BPO/ITES industry, 49 percent received 0 to 5 percent appraisals, and 26 percent received a 5 to 10 percent raise. For the BFSI industry, 20 percent received a 10 to 15 percent hike, and 30 percent received a 5 to 10 percent increment. The banking sector showed improvement with an estimated 15 percent growth in the fiscal year 2023-24. The IT sector also exhibited similar trends, with 30 percent of employees receiving a 10 to 15 percent hike and 21 percent receiving a 5 to 10 percent raise. Notably, 82 percent of respondents employed in the IT sector secured an appraisal this year. In the Engineering/Construction field, 20 percent of respondents received a raise exceeding 20 percent.
The data for the report was collected through a survey conducted by foundit.in, with contributions from major industries and experience levels in both metropolitan and tier-2 cities. The survey included responses from 3066 employees and covered aspects such as promotion opportunities, performance evaluation, job satisfaction, and perceptions of fairness in the appraisal process.