No hikes for over 60% entry level employees this appraisal season: foundit Report

Job aggregator platform foundit, erstwhile known as Monster APAC and ME, revealed in its latest report that over 60 per cent of entry level employees in India have not received a hike this appraisal season.

No hikes for majority entry level employees

An excerpt from the report read, “Salary hikes for Entry-level professionals (0-3 years' experience) reflected an interesting trend, with 62 per cent claiming that they did not receive any appraisal this year. 10 per cent of them received a 5-10 per cent hike, while 9 per cent secured a 0-5 per cent salary raise.”

Focus on non-monetary means of compensation

Moreover, the report highlighted that companies are also looking at alternate methods to compensate employees apart from monetary hikes in remuneration.

Sekhar Garisa, CEO of foundit, said, “The foundit Appraisal Trends Report reveals that companies are also looking at additional and alternative variables to salary hikes, such as ESOPs, bonuses, and even promotions.”

The report highlighted that 49 per cent of employees who did not receive appraisals were incentivized with Employee Stock Ownership Plans (ESOPs) and bonuses by their employers. Also, 20 per cent of those without hikes were offered promotions indicating that career growth opportunities are being offered independently of immediate financial rewards.

Sector wise breakdown

In terms of sector wise breakdown, as per the report,  the majority of employees in Healthcare and BPO/ ITES industries secured a salary hike this year. Within healthcare, 29 per cent employees got a 5-10 per hike while 27 per cent employees got a 10-15 per cent hike. In the BPO/ITES industry, close to half of respondents, i.e. 49 per cent employees secured a 0-5 per cent appraisal in FY23, whereas 26 per cent got a 5-10 per cent raise.

In the BFSI industry, 20 per cent employees received a 10-15 per cent hike, and 30 per cent got a 5-10 per cent increment. IT showcased a similar trend, with 30 per cent getting a 10-15 per cent hike and 21 per cent a 5-10 per cent appraisal. 20 per cent of respondents employed in the Engineering/Construction industry secured a salary hike exceeding 20 per cent.

Road ahead

As per the report, 38 per cent of respondents stated that the increment they received this year met their expectations, while the appraisal process was deemed fair by 52 per cent of respondents.

Post appraisals, 76 per cent of employees expressed their openness to considering a job change based on the survey results. Among those willing to explore new opportunities, a notable 26 per cent of respondents stood out as they fell within the 5-10 per cent increment range, marking the highest percentage in this particular category.

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