Hoping for a good appraisal? Three reasons why your salary this year won't increase by much
For those of you hoping for good appraisal in the present year chances are that the pay hike is likely to be sub-10% across industries, says Aon Hewitt's recent 'Salary Increase Survey' conducted across 1000 plus companies in India.
Industries like Cement, Transportation/Logistics/Shipping Services, Financial Institutions, Real Estate and Infrastructure, Hi Tech/Information Technology, ITeS, among others are projected to record pay hike of 7.6% to 9.9% in 2017, cited the recent findings of survey.
However, for sectors like Consumer Internet Companies, Life Sciences, Professional Services, Chemicals, Entertainment Media, Automotive/Vehicle Manufacturing, Consumer Products, the survey has projected a double-digit growth in pay hike in the range of 10.2% to 12.4% in 2017.
Here are three reasons behind lesser pay hike in 2017:
1. Political changes and economic headwinds have had an impact on business performance. However, the trend this year reflects a gradual slowing of pay increases and higher emphasis on productivity and performance – quite literally a ‘graying’ of salary budgets for India, Aon Hewitt India partner Anandorup Ghose, said in a press release on February 22.
2.The survey findings have shown that the segment of population that features as ‘high performers’ have fallen to 7.5%, the lowest number recorded in the 21 years of Aon Hewitt's 'Salary Increase Survey' conducted in India.
3.The last year has shown organisations take a strong view towards performance differentiation and not only have bell curves become sharper, the pay differentiation between top and average performers has also increased, Ghose said.