According to the Deloitte survey, Corporate India has shown a rise in an average increment by 8 percent in 2021 and it is expected to grow more to 8.6 percent in 2022. The survey shows that despite challenges rise due to COVID-19 Pandemic, the economy of India is healing itself and boosting confidence to be better in the upcoming future.
The second phase of Deloitte’s Workforce and Increment Trends survey 2021 shows that 92 percent of companies gave an increment in 2021 at an average of 8 per cent, compared with only 4.4 per cent in 2020. The survey also adds that out of all the companies that have been surveyed, about 25 percent of them have projected a double-digit increment for 2022.
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.
“While most companies are projecting a higher increment in 2022 compared to 2021, we continue to operate in an environment where COVID-19 related uncertainty persists, making it harder for companies to forecast. Some of the survey respondents have also just closed their 2021 increment cycle so 2022 increments are a fair distance away for them,” Anandorup Ghose, partner, Deloitte Touche Tohmatsu India LLP said.
Moreover, “GDP forecasts for FY 2021-22 were revised down after the second wave and we expect organisations to closely watch similar developments while managing their fixed cost increases next year,” Ghose noted.
The survey also indicates that in 2022, the information technology (IT) sector and life sciences sector are likely to offer higher increments. The survey further noted that approximately 12 percent of employees were promoted in 2021, as compared to 10 per cent in 2020.
And about 60 per cent of organisations updated have their health insurance policy due to COVID-19 and 24 per cent of organisations readjusted their life insurance policy. There are also some changes in the leave policy, almost two out of every three organisations readjusted their leave policy and introduced special leaves of 14 to 21 days, over and above the regular annual paid leaves.
According to the survey, employees seem to prefer a hybrid work arrangement that includes a combination of both works from home and office. However, at an all India level, only 40 per cent of organisations have finalised their return to work strategy.