Hoping for a good appraisal? Three reasons why your salary this year won't increase by much
Chances are that the employees in India's pay hike is likely to be sub-10% across industries in 2017.
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.