New Delhi: While IT companies are expected to give the highest salary hikes next year to reach the pre-covid pandemic levels of 2019, as per survey. Early estimates reveal that average increment for 2022 is expected to increase to 8.6% in line with a healing economy and improving confidence.
As per the second phase of Deloitte’s Workforce and Increment Trends, 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.
Meanwhile, the survey highlighted that 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.
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 stated that as far as return to office is concerned, only 25% companies have conducted an employee preference survey to decide their return to work strategy and the IT sector has been the most proactive is assessing employee preferences with regards to the desired workplace.
“Going forward, function specific increment differentiation may become more prevalent as attrition rates vary significantly across different skills. Compensation is usually one of the top reasons for attrition, particularly at a junior management level, where virtual hiring has made it easier to jump ships,” said Anubhav Gupta, partner, Deloitte Touche Tohmatsu India LLP.
Approximately 12% employees were promoted in 2021 as compared to 10 percent in 2020. Almost 12% companies have updated their bonus or variable pay plans to align their rewards structures with the changing priorities. With respect to hiring, 78% companies stated that they have started recruiting at the same pace as they used to prior to COVID-19, the survey by the consulting firm noted.