According to a survey conducted by the consulting firm Deloitte, Indian companies may offer an increment of 8.6 per cent in the standard payment in 2022.
In 2021, the average salary hike was 8 per cent, which was 4.4 per cent higher than 2020.
The survey even states that the companies will prevail to determine the boost in wages based on the employee skills and performance.
When the ill-effects of COVID-19 came upon, several companies across the country descended to pay half the wages and most minor salary increments. In contrast, some companies even called off regular appraisals.
After mowing the employees’ salaries and intruding with the payroll for more than a year, the companies finally announced some news of relief for the employees.
As per a survey finding, about 92 per cent of companies in the country proffered a raise of 8 per cent in 2021 in the standard salary, which is 4.4 per cent more than what was offered in 2020 by just 60 per cent of companies in India.
Some of the early sources indicate that the average rise in salary may lead to 8.6 per cent in 2022, which will regenerate the moribund economy and bolster the country’s confidence.
Should that remain true, increments in 2022 would outstretch the position before the pandemic in 2019.
Deloitte performed a workforce, and increment trends survey this year which states that around 25 per cent of companies have proposed a two-digit increment in salary for 2022.
Anandarup Ghose, a partner at Deloitte Touche Tohmatsu India LLP, said that most companies face trouble forecasting the increment numbers as the market is still operating in an unreliable environment after the COVID outbreak.
Organizations and Their Decisions Post-Pandemic
Information Technology (IT) sector is most likely to offer the highest increment in salary succeeded by life sciences.
IT sector, along with some digital/e-commerce companies, are lining up to stretch to double-digit salary raise.
Retail, infrastructure, restaurants, hospitality and real estate still have business dynamics crippling with loss; hence are offering some of the lowest increments of all sectors.
As stated earlier, the best performers can anticipate an increment of 1.8 times more than the average performers. Companies are ceaselessly trying to counterpoise between employee cost and employee benefits.
About 10 per cent of employees got a promotion in 2020, whereas in 2021, it increased by 2 per cent. More or less, 12 per cent of organizations have made alterations to their employee pay plans considering the new priorities.
Also, 78 per cent of companies claim that they have started the recruitment process at the same rate as before COVID-19.
The same survey as earlier says that only 25 per cent of companies have taken an employee preference survey to decide their work return agenda.
Most organizations have already finalized a hybrid model as their work return strategy, which would provide permanent adaptability to the workers. They can now decide when and how much to choose.
Earlier, the companies used to determine who could work from home, but now they decide who can or is required to work from the office due to the changed circumstances post-pandemic.
The hybrid work model appears to be the favoured choice.
Still, there are some intricate aspects about the employees’ health and safety, teamwork, flexibility and choice, coordination, management, data privacy, and the work culture that require thought through with care and compassion before jumping onto a conclusion of return to work schedule.
