The Covid-19 cases are dipping and vaccination is picking up, and amid all of these development corporations and many companies are asking their employees to start working from home. But amid the normalizing COVID-19 situation, there is a good news for employees also. The good news is in regards to the increment that employees will get next year. According to the survey titled as Deloitte’s Workforce and Increment Trends survey 2021 says that 92 per cent companies gave an increment in 2021 at an average of 8.0 per cent compared with only 4.4 per cent in 2020 where just 60 per cent companies had extended a pay hike. The estimate throwing light on the potential increment one individual can get said, “Early estimates reveal that average increment for 2022 is expected to increase to 8.6 per cent in line with a healing economy and improving confidence. If this holds true, increments in 2022 would reach the pre-pandemic levels of 2019. About 25 per cent companies surveyed have projected a double-digit increment for 2022.
Even IT sector has been hogging news these days for being on a hiring spree and for giving hike in the range of 120-130 per cent. So, with the economy rebounding at the faster pace, the hiring and hike situation in the IT Sector has improved at a record pace.
“While most companies are projecting a higher increment in 2022 compared to 2021, we continue to operate in an environment where COVID-19 related uncertainty persists, making it harder for companies to forecast. Some of the survey respondents have also just closed their 2021 increment cycle so 2022 increments are a fair distance away for them. GDP forecasts for FY 2021-22 were revised down after the second wave and we expect organisations to closely watch similar developments while managing their fixed cost increases next year,”Anandorup Ghose, partner, Deloitte Touche Tohmatsu India LLP, said,
The Information Technology (IT) sector is likely to offer the highest increments, followed by the Life Sciences sector. IT is the only sector that is expected to extend double-digit increments with some digital / e-commerce companies planning to give some of the highest increments. Retail, hospitality, restaurants, infrastructure, and real estate companies continue to project some of the lowest increments in line with their business dynamics, the survey says.
Not all employees are expected to get the same increment as organisations continue to differentiate pay increases by skills and performance. Top performers can expect about 1.8 times the increments given to average performers.
Approximately 12 per cent employees were promoted in 2021 as compared to 10 per cent in 2020. Almost 12 percent companies have updated their bonus or variable pay plans to align their rewards structures with the changing priorities. With respect to hiring, 78 percent companies stated that they have started recruiting at the same pace as they used to prior to COVID-19.
The IT sector has been the most proactive is assessing employee preferences with regards to the desired workplace. In most cases where such a survey was conducted, employees seem to prefer a hybrid work arrangement (combination of work from home and office, wherever feasible). Average India increment at 8.0 percent in 2021; early estimates for 2022 projected increment at 8.6 per cent per the Workforce and Increments Trends Survey by Deloitte.
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