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11% Salary Hike expected in FY’2013 Appraisal – MyHiringClub.com
According to Annual Performance Appraisal study by Global Recruitment Tendering Platform MyHiringClub.com shows 83% companies in India are planning to give Annual Bonus & Salary increase in this appraisal season.
The Online Survey Questionnaire was circulated to 2416 CEO’s, CFO’s, Controllers, Finance Heads, HR Heads & Talent Acquisition Team Members and 14502 Employees. The Survey was conducted over a month, and thereafter results were carefully reviewed and analyzed. Responses were received from professionals from PAN India
Zone Wise Salary Increment & Bonus
89% companies in South are planning to give increment and bonus this year as compared to 83% by North, 81% by West and 79% by East.
A majority of 84% responded in the affirmative to give Salary Hike in this appraisal season, which is down a whopping 3% compared to FY’12. However, the quantum of that increment to be doled out this year by companies largely falls in the 5-10% bracket with biggest contributor of 69%. This basically shows that though a majority of companies are giving increments this year across professions, the percentage increase is not very attractive and average increment will be 11%.
As opposed to the trend last year where 82% of companies were willing to dole out bonuses last financial year, this financial year again heralds a healthy trend on the bonus front. 84% of the companies surveyed are willing to dole out bonuses in FY’13, which certainly augurs towards a healthy trend macro economically across the globe. This year, respondents across the world are willing to give bonuses in excess of 20% PAN India, to some extent. In other words there is no region in the broad areas surveyed, where companies are not giving bonuses in excess of 20%. The average bonus PAN India is 10% and most of the companies across the geographical spectrum are giving bonuses in the range of 5%-20% of the annual compensation of the employees. This is a shade better than last year when majority companies across all jurisdictions were giving bonuses in the range of 5%-10%.
Company Size Wise
Among companies in the size wise category, micro companies lead the pack of those not planning to give increments with 34%. Most preferences among the participant companies lie in the upto 5% range for increments in FY’12. In the others category data shows increments across company sizes in the 0-10% range. This shows a clear picture of the situations in India is changing moreover with cold - shoulder and a firm augmentation stage is perceived in the developing world.
94% large companies planning to pay salary increment & bonuses followed by large (93%), medium (83%), small (81%) and micro (66%)
Self Assessment by Employees
Majority of the respondents expect an increment between the ranges of 5% - 10%. A very small percentage of them expect to receive anything above 20%. If you see the geographical trend then unsurprisingly, most of the respondents surveyed in India expect increments in FY’12, with only 4% replying in the negative. Majority of the respondents in India, the expectation in FY’13 hovers between 5%-10%.
Among respondent 18% are not expecting any bonus and salary increase; However 26% anticipating bonus and salary increase upto 5% followed by 22% between 5-10%, 20% between 10-15% and 11% between 15-20%.
As against above average salary increment expectations for the current year, it was interesting to note that only 73% of the respondents expect a promotion this year.
FY’13 heralds a positive change as the number of respondents expecting a nil bonus has gone up from 16% last year to 19%. Moreover, the average range of those respondents expecting bonuses in the range of 1% to 5% has risen from 29% last year to 31%. This simply means that global expectations of employees for better pay through bonuses especially have risen significantly.
61% of the respondents are either actively (37%) or passively (24%) evaluating a career/job change, with only 39% replying in the negative. This shows that a level of dissatisfaction has enveloped the working community in their current jobs and corporate HR has a proactive role to play in order to ensure that employee turnover is at a bare minimum.
“Current appraisal season salaries and bonuses in India are expecting in double digit. Increments have been conservative at 11% and bonuses have been 10%, attributable to the prevalent market sentiment. The increment and bonus percentages have dropped by 1-2% points across levels compared to last year, with maximum impact at top management level. We witnessed early signs of resurgence in India, and this translated to improved strategic spending on employees - through salary increases, bonuses & incentives. Major Reason for less salary increment and bonus are first half was not good for companies in terms of business and revenue compared to last year but employers want to give increment and bonus to maintain healthy atmosphere among their employees and retain them .
This appraisal season in terms of industry wise increment; aviation is worst due to several problems earlier faced but it should be a promising industry in coming few months. Retail is a demanded industry and growth of retail industry was maximum time stable or in upward.” Said Rajesh Kumar, CEO, MyHiringClub.com & FlikJobs.com