More than 60 percent of entry-level professionals with zero to three years of experience did not receive any appraisal this year while only 10 percent of them received a hike in the range of 5-10 percent, according to a report.
Whereas associates with 4-6 years’ experience level fared slightly better with 17 percent having secured a 5-10 percent hike, and 15 percent a 10-15 percent raise, as per foundit Appraisal Trends Report. Moving up the ladder, 23 percent of mid-senior (7-10 years’ experience ) level employees received an increment in the 5-10 percent range, while leadership (over 16 years’ experience ) positions emerged as the top beneficiaries, with an impressive 19 percent receiving increments in the 5-10 percent range.
However, the survey's most surprising revelation was that intermediate employees stood out as the top beneficiaries in terms of the maximum appraisal percentage, with 13 percent of them receiving a hike exceeding 20 percent surpassing even the senior level and leadership positions. It is also notable that over 30 percent of employees in each experience level category did not receive any appraisals this year.
Healthcare and BPO/ITES sectors lead the way
The report reveals that a majority of employees in Healthcare and BPO/ITES industries secured a salary hike this year. Within healthcare, 29 percent employees got a 5-10 percent hike while 27 percent employees got a 10-15 percent hike. In the BPO/ITES industry, close to half of respondents, i.e. 49 percent employees secured a 0-5 percent appraisal in FY23, whereas 26 percent got a 5-10 percent raise.
The BFSI industry has rolled out good appraisals this year, with 20 percent employees receiving a 10-15 percent hike, and 30 percent a 5-10 percent increment. The banking sector has been improving its performance across key metrics, with credit growth estimated at ~15 percent over fiscal 2023 and 2024.
IT showcased a similar trend, with 30 percent getting a 10-15 percent hike and 21 percent a 5-10 percent appraisal. It is interesting to note that 82 percent respondents employed in IT secured a pay raise this year. Moreover, 20 percent of respondents employed in the Engineering/Construction industry secured a salary hike exceeding 20 percent.
Employees willing to consider job change
A remarkable 76 percent of employees expressed their openness to considering a job change based on the survey results for the fiscal year 2022-2023. Among those willing to explore new opportunities, a notable 26 percent of respondents stood out as they fell within the 5-10 percent increment range, marking the highest percentage in this particular category.
Among other findings, a significant 49 percent of employees who did not receive appraisals were incentivized with Employee Stock Ownership Plans (ESOPs) and bonuses by their employers, which are alternative forms of recognition and rewards. Moreover, 20 percent of those without hikes were offered promotions indicating that career growth opportunities are being offered independently of immediate financial rewards.
Reflecting overall employee sentiments on appraisals, 38 percent of respondents stated that the increment they received this year met their expectations, reflecting a positive alignment between performance and recognition. The appraisal process was deemed fair by 52 percent of respondents, indicating transparency and fairness in the evaluation process.
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