With the Covid-19 infections plummeting across the nation and improvements marked in the present pandemic situation, IT firms across the country have begun a hiring spree. Moreover, it is learnt that the IT majors are likely to provide double digit increment to their employees the next year.
According to a survey conducted by multinational professional services network Deloitte titled, "Deloitte’s Workforce and Increment Trends survey 2021", around 92 percent companies gave an average increment of eight per cent in 2021 as compared to 4.4 per cent in 2020.
“Early estimates reveal that the average increment for 2022 is expected to increase to 8.6 per cent in line with a healing economy and improving confidence. If this holds true, increments in 2022 would reach the pre-pandemic levels of 2019. About 25 per cent companies surveyed have projected a double-digit increment for 2022," the survey report said.
“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, the 2022 increments are a fair distance away for them. 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,” said Anandorup Ghose, partner, Deloitte Touche Tohmatsu India LLP.
In 2022, the Information Technology (IT) sector is likely to offer the highest increments, followed by the Life Sciences sector. IT is the only sector that is expected to extend double-digit increments with some digital / e-commerce companies planning to give some of the highest increments. Retail, hospitality, restaurants, infrastructure, and real estate companies continue to project some of the lowest increments in line with their business dynamics. Not all employees are expected to get the same increment as organisations continue to differentiate pay increases by skills and performance. Top performers can expect about 1.8 times the increments given to average performers, the survey indicates.
Approximately 12 per cent employees were promoted in 2021 as compared to 10 per cent in 2020. Almost 12 percent companies have updated their bonus or variable pay plans to align their rewards structures with the changing priorities. With respect to hiring, 78 percent companies stated that they have started recruiting at the same pace as they used to prior to COVID-19.
As far as return to office is concerned, only 25 percent companies have conducted an employee preference survey to decide their return to work strategy. The IT sector has been the most proactive is assessing employee preferences with regards to the desired workplace. In most cases where such a survey was conducted, employees seem to prefer a hybrid work arrangement (combination of work from home and office, wherever feasible). However, at an all India level, only 40 percent organisations have finalised their return to work strategy.