Indian employees likely to get worst appraisals in 2020 in a decade, says survey
Employees working in India are likely to get lowest salary hike in over a decade in 2020 at 9.1 per cent, according to a recent survey by Aon Plc
The employees working in India are likely to get the lowest hike in salary in a decade, according to a recent survey by Aon Plc.
The survey also revealed that the attrition rate among Indian employees increased a little from 15.8% in 2018 to 16.1% in 2019, caused by involuntary layoffs
The Aon Salary Increase Survey 2020 stated that the Indian employees are likely to get an average salary hike at 9.1 per cent in 2020 which is the lowest since 2009 when the hike was recorded at 6.6 per cent.
The average salary hike first went down after 2011 when the average annual salary hike peaked by 12.6 per cent.
Despite the drop in 2020, two out of five companies in the survey showed a double-digit increase in the annual income hike expecting a positive economic outlook.
The survey was conducted in 1000 companies which included 500 firms in manufacturing and 500 service firms.
Here are the sectors-wise employees' salary hike projections in 2020:-
- E-Commerce - 10.0 per cent
- Professional Services sectors- 10.0 per cent
- Pharmaceutical / Medical Devices- 9.9 per cent
- Hi-Tech / Information Technology- 9.6 per cent,
- ITeS- 9.6 per cent
- FMCG / Consumer Durables- 9.3 per cent
- Chemicals -9.3 per cent
- Engineering / Manufacturing - 9.1 per cent
- Cement- 8.9 per cent
- Energy- 8.8 per cent
Director of Organisation, Performance and Rewards in Aon India Navneet Rattan said, “We see a reduction in the differences between pay increases across industries, with 85% of the organisations projecting between 7%-11% - a sign of maturing business ecosystems. However, the premium for high performance and new-age skills continues to rise.”