Early estimates from Deloitte’s Workforce and Increment Trends Survey show that average annual wage increases will reach pre-pandemic levels of 8.6 percent in 2022. According to the report, around 25% of the organizations polled expect a double-digit increase in 2022, in keeping with the modest improvement in business confidence in recent months.
Following the pandemic-caused lockdowns and travel restrictions in 2020, average pay increases fell to 4.4 percent. However, as business optimism has improved in recent months, the average India increment in 2021 is expected to be around 8%, according to the survey. The India-specific B2B survey was performed in July 2021, with HR professionals from 450 organizations representing more than two dozen sectors and sub-sectors participating.
According to the poll, the information technology sector would likely offer the largest raises in 2022, followed by the life sciences sector. IT is the only industry that is anticipated to offer double-digit raises, with digital/e-commerce enterprises at the top of the list. However, increases in the retail, hospitality, restaurant, infrastructure, and real estate industries are expected to be subdued in 2022.
Pay increases will be unequal across organizations, with firms tying skill advancement to performance. According to the report, top achievers can expect 1.8 times the increments provided to mediocre performers. As attrition rates vary dramatically across different skills, function-specific increment differentiation may become more common in the future, according to Anubhav Gupta, partner, Deloitte ToucheTohumatsu India.
In 2021, approximately 12% of employees were promoted, compared to 10% in 2020. In terms of hiring, 78 percent of employers reported that they have begun to hire at the same rate that they did prior to the Covid-19 outbreak.
Almost 12% of businesses have modified their bonus and variable pay schemes to adapt their rewards system with shifting priorities. Because of Covid-19, over 60% of the organizations polled altered their health insurance policies. Almost two out of every three organizations revised their leave policies and instituted exceptional leave periods ranging from 14 to 21 days. Approximately half of the respondents paid monetary compensation to the families of employees who died as a result of Covid-19.
Organizations are still ironing out the details of their return to office strategy. Only 25% of companies have performed staff surveys to determine employee preferences. According to the poll, only 40% of organizations in India have fleshed out their return-to-work strategy. The IT industry has been the most aggressive in assessing employee preferences for the desired workplaces. According to the report, most employees favor a hybrid work arrangement. According to the report, some prominent organizations are taking explicit initiatives to prepare managers to lead teams in a virtual/hybrid workplace paradigm and foster collaboration through training programs.