A staggering 86% professionals plan to change jobs in the coming months even after salary increments in the just-concluded appraisal cycle, according to the latest foundit Appraisal Trends Report 2025.
The survey said that the intention to switch jobs is the highest among the employees who received the maximum increments of over 20%. The survey, based on responses from 5,108 employees across industries and functions, revealed that nearly 74% professionals got salary increments this appraisal cycle. Though overall appraisals are broadly in line with expectations, the actual increment amounts and sector-wise disparities have left most professionals discontented.
Compensation alone no longer a retention strategy
The survey further underscored that salary is no longer the only crucial factor in retaining high-performing talent. “This year’s appraisal cycle reflects a growing disconnect between employer intent and employee expectations. While many organisations delivered annual reviews, job seekers are increasingly looking beyond compensation. They want growth, visibility, skill development, and work-life alignment. To retain talent in this climate, companies must go beyond pay and double down on clarity, learning pathways, and consistent communication,” said Pranay Kale, chief revenue and growth officer at foundit.
With nearly three-fourths of professionals getting increments, FY25 has turned out to be a better year than the previous year when about 62% individuals were given hikes. In FY25, a majority of hikes ranged from 5-10% with just a small share exceeding the 20% mark. Some companies, however, tried to strike a balance in order to retain the top talent. For instance, 11% of those who did not receive any appraisals this year were offered promotions.
Sectors and roles show varied trends
Key industries such as energy, banking, financial services and insurance (BFSI), and healthcare showed relatively balanced increments, while others such as advertising, education, and IT saw a higher concentration of professionals reporting no hike at all, the survey noted. In the energy sector, 26% of the professionals got salary increments of over 20%, which is the highest among 12 industries surveyed. Similarly, the BFSI sector had the lowest number of individuals (11%) with no increment.
The salary hikes in FY25 have come in the backdrop of a job market that remains cautious about hiring for the past few quarters, the survey said. In terms of experience, the mid-level (7-10 years of work experience) professionals have received the maximum hikes, with 19% of them getting over 20% salary jumps as compared to just 4% senior level (11-15 years) professionals getting a similar-range hike. The results also show leadership (15-plus years) and senior level had the highest share of employees who did not receive a hike.
Job functions such as marketing, communications, sales and business development have witnessed the highest number of individuals falling under the 20%-plus increment bracket while roles such as HR, finance and accounts saw the highest number of individuals with no increments.