Around 92% companies in India gave an increment at an average of 8% in 2021 compared with only 4.4% in 2020 where just 60% companies had extended a pay hike, according to a survey findings. Early estimates reveal that average increment for 2022 is expected to increase to 8.6% 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% companies surveyed have projected a double-digit increment for 2022, as per the second phase of Deloitte’s Workforce and Increment Trends survey 2021.
The second phase of Deloitte’s Workforce and Increment Trends survey 2021 provides India-specific insights on rewards, impact of COVID-19 on benefits policies, and return to work strategies of organisations. Phase-1 of the survey was released in February 2021.
The 2021 Workforce and Increment Trends survey was launched in July 2021. The primary audience for this survey were seasoned HR professionals. More than 450 organisations participated in this edition spread across seven sectors and 24 sub-sectors.
The survey further said that organisations will continue to differentiate pay increases by skills and performance and top performers can expect about 1.8 times the increments given to average performers.
It also indicates that in 2022, 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 further noted that approximately 12 per cent employees were promoted in 2021, as compared to 10 per cent in 2020. Almost 12 per cent companies have updated their bonus or variable pay plans to align their rewards structures with the changing priorities. With respect to hiring, 78 per cent companies stated that they have started recruiting at the same pace as they used to prior to COVID-19.
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