Waiting for pay hike? Know expected increment you may get
April is here and a majority of the companies have already closed the appraisal process with employees keenly awaiting for the increment letter.
April is here and a majority of the companies have already closed the appraisal process with employees keenly awaiting for the increment letter. While this may take little more time, Shine.com recently conducted a first-of-its-kind appraisal survey focusing on the expectations of employees instead of a top-down HR or company led perspective. The survey was conducted across working professionals from various industries including IT, Banking and Finance, Industrial products, education/training, FMCG etc.
The survey revealed that professionals working in cities such as Mumbai, Pune and Chennai are looking for higher pay hikes, above 20% as compared to their counterparts in other metros like Delhi-NCR and Bangalore, wherein people expect lower hikes in salaries – between 0-10 percent.
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The Survey found that in the Financial Capital – Mumbai almost 37% of people are expecting increment above 20%, while in Pune and Chennai, the number is 36% and 38% respectively. "Bangalore, which is referred to as the Silicon Valley of India, observed that 21% of people expecting appraisals in the range of up to 10% hike, while the country’s capital – Delhi NCR saw the trend of 20% of people expecting increments on the lower side," said the report.
* Appraisal sentiment in Bangalore: High competition; low expectation
Shine.com also mapped the lowest expectations across sectors and cities. Bangalore emerged as one of the least demanding cities in terms of pay hikes, as one-fifth of all respondents in the city mentioned that they would be satisfied with up to 10% increment. "Sectors including BFSI, IT and BPOs, that already offer high packages to employees are the ones driving these low expectations. As there is an abundance of talent in the city, especially in the IT and e-commerce sectors, it is no surprise that professionals are expecting lower appraisals," it said.
Though Bangalore has been India’s IT hub for years, its e-commerce sector is expecting much lower appraisals as compared to Delhi. The survey claimed that while over 46% of e-commerce sector employees in Bangalore are only expecting an average growth of 11-15%, Delhi NCR (Gurgaon) seems to be emerging as a new hub for E-commerce as appraisal sentiment is high with over 1/3rd professionals expecting a bumper hike of over 20%.
* Auto and Education bolster appraisal sentiment in Mumbai, Pune
The survey further revealed an interesting development in Mumbai and Pune where employees in Education/Training and the Automobile sector are expecting hikes on the higher side. "While a whopping 62% of employees in Mumbai are looking for over 20% appraisal in the Education/Training sector, around 56% in Auto are eyeing the same. Further, 48% of employees in the Auto sector and 38% in the Education/Training sector are looking for more than 20% hike in Pune," it said.
These two cities, which are witnessing robust growth across most sectors have collectively portrayed the highest appraisal sentiment in the country.
* Sector-wise analysis: BFSI and BPO/KPO/ITES expectations witness an uptick
A sector-wise analysis of appraisal expectations revealed that the highest appraisal sentiment is being carried by professionals the BFSI and BPO/KPO/ITES sectors with over 35% of employees in these sectors expecting more than 20% increment. With these sectors witnessing robust growth on the back of the tech advancement and integration, such high expectations come as no surprise.
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The respondents of the survey were majorly located in leading metro cities including Mumbai (19.49%), Delhi/NCR (20.89%), Bangalore (20.08%), Hyderabad (16.43%), Pune (9.34%) and Chennai (11.64%).
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