90% companies likely to give salary hikes in 2021 as economy rebounds at faster pace than expected: Report
New Delhi | Jagran Business Desk: In what might bring a smile on the face of the pandemic-hit middle class, more than 90 per cent of companies and organisations will likely give a hike to their employees in this year compared to 60 per cent in 2020, said a survey by Deloitte.
In its survey, Deloitte found that nearly 10.2 per cent of employees will likely get a promotion this year compared to 7.4 per cent in 2020 while average hikes will be raised by 3 per cent.
The survey, in which nearly 400 firms participated from seven sector, claimed that companies and organisations had adopted a "conservative approach" last year due to the COVID-19 pandemic but are now buoyed by the strong economic growth projected by this year by the Reserve Bank of India (RBI).
"This uptick is still a conservative one than any of us would have seen in previous years. Companies are being conservative than being exuberant at this point. Promotions and promotion-linked pay increases have gone up. There’s a 250-basis-point (100bps = 1 percentage point) increase in the percentage of employees that will get promoted this year," Anandorup Ghose, partner at DTTILLP Workforce and Increment Trends Survey, was quoted by The Times of India as saying.
How much hike companies will likely give this year?
The Deloitte survey claimed that employees in IT sectors and Life sciences will likely get the highest hike while those in manufacturing units will get a relatively lesser hike.
It further said that 20 per cent of the companies that participated in the survey are planning to give a double-digit hike to their employees this year, noting that individual performances are also going to be a factor for an increment.
The coronavirus pandemic severely impacted the economy after the government imposed a stringent lockdown to control the spread of the infection. However, with economic activities resuming, the RBI has projected a 10.5 per cent GDP growth for the financial year 2021. It has said that the "growth outlook has improved significantly and the coronavirus vaccination drive will help the economic rebound".
"Many people lost out on promotions because of the pandemic. The higher number of promotions implies huge costs even as companies are trying to get back into shape," said Ghose, as reported by The Times of India.
Posted By: Aalok Sensharma