Just like us, are you also rushing to get things done on time? At work, you're on your toes because you don't want to piss off your boss? We feel you. The appraisal time is here and all of us are putting our best foot forward. Even though coffee breaks are all about discussing who's going to get that big raise, somewhere we all know that next month we are going to feel that injustice has been served to us. And this recent report kind of confirms it.
Aon plc, a leading global professional services firm providing a broad range of risk, retirement, and health solutions released the 24th edition of its annual Salary Increase Survey in India. The survey analysed data across 1,000+ companies from more than 20 industries shows that Indian companies gave an average pay increase of 9.3% to their employees in 2019. This was because of a slowdown in the economy compared to 2018. Now, here comes the bad news, wait, take a deep breath first. According to the survey, this year the companies will only increase the average pay by 9.1 percent in 2020, the lowest in the decade. The projected hike is down 20 basis points from 9.3 percent in 2019. The figure for 2018 was 9.5 percent.
It was long back in 2009 when Indian companies witnessed an average hike of just 6.6 percent, the 2020 figure is the lowest in the last 20 years. The worst-hit are the automotive and vehicle manufacturing industry. The industries have reported the biggest drop to 8.3 percent this year from 10.1 percent in 2018. The transportation and logistics sector is at the bottom of the pay ladder in 2020 with a projected salary hike of 7.6 percent.
Ironically, India was just named the fifth largest economy in the world with a GDP of USD 2.94 trillion by a US-based think-tank World Population Review. According to World Population Review, India’s service sector is the fastest-growing sector in the world accounting for 60% of the economy, with agriculture and manufacturing being the two significant sectors of the economy.
Meanwhile, the survey by Aon also shows that despite the fall in the projections, almost 42 percent of participating companies are projecting a double-digit increase, expecting a positive economic outlook just to encourage talents and reduce attrition. And as for the attrition rate, the survey showed that the layoffs among Indian companies went up from 15.8 percent to 16.1 percent in 2019.
Feeling cheated? Wait, we do have some good news to look forward to. As per the survey, 30 percent of the organisations in India are still projecting a double-digit increase in salaries. Startups, the pharmaceutical sector, professional services and e-commerce platforms are expected to offer a higher-than-average salary hike of 10 percent and will be the top paymasters in 2020.
If it’s any consolation, India will still be offering a better pay hike than other countries in the Asia-Pacific region. The second in line to India is China with a projected salary hike of 6.3 percent, followed by Philippines at 5.8 percent. Malaysian companies are expected to offer a 5.3 percent hike while Singapore and Australia are predicted to offer a hike of 3.8 percent and 3.1 percent respectively. The lowest salary hike, according to the survey, is predicted to be offered by Japan, which stands at 2.4 percent.
Okay now let's come to the point, do you know what all this means? This means that you can stop being a sanskari employee.