What might make smile pandemic-hit middle class, more than 90 percent of companies and organizations will likely give a hike to their employees this year compared to 60 percent in 2020, as per the Deloitte survey.
In its survey, Deloitte discovered that approximately 10.2 percent of employees would likely get promoted this year compared to 7.4 percent in 2020, while average hikes will be increased by 3 percent.
In this survey, around 400 firms participated from seven sectors claimed that corporations and organizations had chosen a “conservative approach” last year due to the COVID-19 pandemic but are now buoyed by the strong economic growth projected by this year by the Reserve Bank of India (RBI).
“This uptick is still a conservative one than any of us would have seen in previous years. Companies are being conservative than being exuberant at this point. Promotions and promotion-linked pay increases have gone up. There’s a 250-basis-point (100bps = 1 percentage point) increase in the percentage of employees that will get promoted this year,” Anandorup Ghose, partner at DTTILLP Workforce and Increment Trends Survey, was quoted by The Times of India.
The Deloitte survey further stated that employees in IT sectors and Life sciences would likely get the maximum hike compared to manufacturing units.
It also claimed that 20 percent of the companies that participated in the survey intend to give a double-digit hike to their employees this year, perceiving that individual performances will also be a factor for an increase.
The coronavirus pandemic severely affected the economy after the government imposed a stringent lockdown to limit infection. Though, with economic activities resuming, the RBI has predicted a 10.5 percent GDP growth for 2021. It has said that the “growth outlook has improved significantly, and the coronavirus vaccination drive will help the economic rebound”.
“Many people lost out on promotions because of the pandemic. The higher number of promotions implies huge costs even as companies are trying to get back into shape,” said Ghose, as reported by The Times of India.
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