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62% of Indian Employees Get Salary Hikes in Lukewarm Market, Foundit Report

foundit, formerly known as Monster APAC & ME, the leading talent platform in India, has unveiled its “foundit Appraisal Trends Report” based on a comprehensive survey analyzing the appraisal trends for Indian employees over the financial year 2022-2023. The report sheds light on the positive outlook for employees, with 62% receiving a salary hike this year, despite uncertainties in the job market.

Sekhar Garisa, CEO of foundit, expressed his delight with the findings, stating, “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.”

The report highlights the significance of non-metro cities in talent growth, with 13% of professionals in these areas receiving outstanding hikes exceeding 20%. This trend reflects the growing opportunities and rewards offered to talent in non-metro regions as organizations move to leverage larger talent pools and reduce costs.

The appraisal distribution across different experience levels shows interesting patterns. Entry-level professionals experienced varying results, with 62% reporting no appraisal this year, while associate level employees received the highest hikes. Surprisingly, intermediate employees emerged as the top beneficiaries, with 13% receiving hikes exceeding 20%, surpassing even senior level and leadership positions.

The report also delves into industry-specific trends, revealing that the healthcare and BPO/ITES sectors offered salary hikes to over 90% of their employees. Additionally, the BFSI and IT sectors displayed positive appraisals, with a significant number of employees receiving salary increments.

A notable 76% of employees expressed their openness to considering a job change based on the survey results. For those willing to explore new opportunities, 26% fell within the 5-10% increment range, making up the highest percentage in this category. However, many employees who are content with their current roles attributed it to team-leading opportunities, good office culture, and better learning opportunities.

Among the employees who did not receive salary hikes, 49% were compensated with Employee Stock Ownership Plans (ESOPs) and bonuses, while 20% were offered promotions, indicating the emphasis on alternative forms of recognition and career growth opportunities.

Overall, the survey revealed positive alignment between performance and recognition, with 38% of respondents stating that the increment they received this year met their expectations. Furthermore, 52% of respondents deemed the appraisal process fair, indicating transparency and fairness in the evaluation process.

The report was compiled through a comprehensive survey, collecting insights from 3066 employees across various industries and experience levels. By utilizing this methodology, the foundit Appraisal Trends Report offers valuable and holistic perspectives on the prevailing trends in employee appraisals during the specified period.

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