The most anticipated time of the year has come and gone. We’re talking about the appraisals, of course!
How did the appraisal cycle for FY 2022 – 2023 go? In a recent appraisal survey, foundit asked people from various industries about their salary hikes, and there were some surprising results!
Background
2022 – 2023 was the first year of the ‘new normal’ after Covid-19. There were some remarkable shifts in the professional environments. Many offices opened, and employees started trickling back into offices.
It was also an appraisal season that many employees were waiting for eagerly, after the difficult years of the pandemic.
Key Takeaways from foundit’s Appraisal Survey 2022 -23:
Appraisal Stats for FY 2022-23:
- 62% of respondents got an appraisal. Interestingly, 6 out of 10 employees got a hike this year
- Almost half of those (49%) who didn’t get a hike were incentivised with ESOPs and bonuses, while 20% got promotions
- 52% people said they got a fair appraisal; Just 38% said that the increment hike met their expectation
- Non-metro cities saw marginally better hikes
- Among sectors, employees in BFSI got a better range of salary hikes. Healthcare and BPO/ITES sectors saw more employees get hikes when compared to other sectors
- 76% of those surveyed are looking for a job change, but this isn’t directly linked to appraisals
Appraisal stats by Work Experience
No hikes: Of all employees, entry-level professionals got a rough deal. 62% of entry-level professionals (0-3 years’ experience) did not get a salary hike at all — the highest among all experience levels.
Highest hikes (+20%): Associate level professionals (4-6 years’ experience) got the highest hikes when compared to every other group.
Appraisal Stats by Industry and City
- Across all industries, most employees surveyed got a 10-15% salary hike
- Overall, just 11% of employees surveyed got the highest salary hike (more than 20%)
- The IT sector saw the highest variance of salary hikes, with employees receiving hikes in the 0-5% range as well as 10-15% range
- Non-metro cities also enjoyed better increments than their metro counterparts
The Job Change Factor
Is there a link between appraisals and job change?
The foundit Appraisal Survey indicates that 76% of employees surveyed are contemplating a job switch.
Here’s the twist: employees wanted to switch jobs even when they got good salary hikes. Specifically, even those who got decent salary hikes (between the range of 5-10% and above 20%) were planning a job change. More than 70% of them wanted to leave their current roles.
Career Growth Vs Compensation: A Balancing Act
Perks and Benefits ranked in fourth place in the list of factors influencing people to continue in their jobs.
The factors that preceded perks and benefits in a workplace are:
- Team Leading Opportunities
- Office Culture
- Learning Opportunities
For employees, a good workplace is about more than money. It’s also about recognition, growth and work culture.
You can read the full Appraisal Report here:
As we navigate the new financial year, this data gives employers something to reflect on. And for employees, this is a benchmark to assess their appraisals.
One thing is for sure, the appraisal landscape is changing, and it’s more dynamic than ever.
Survey Methodology and Context
To ensure a holistic understanding of the appraisal landscape, foundit gathered inputs from 3,066 employees across various major industries, guaranteeing proportional representation.
Our focus was not just on the numbers but on aspects like performance evaluation, promotion opportunities, job satisfaction, and the perceived fairness of the appraisal process.
We also probed into employee sentiments about their payouts, perks, benefits, and their expectations vs. reality.
Although we have been diligent in our efforts, please note that the information, while insightful, might not capture every nuance of the appraisal ecosystem.
