More employees being rated poorly as firms cut back on increments: Survey

Only four in 10 companies ready for give staff a pay hike, says Deloitte Touche Tohmatsu India

The proportion of employees whose performance is rated below average has gone up amid falling revenues and deferred increment decisions.

The proportion of employees whose performance is seen to be above average is also seen to fall in the current financial year ending March 2021 (FY21). The data is based on Deloitte Touche Tohmatsu India’s 2020 Workforce and Increment Trends Survey Results (phase II).  More people are also being rated average shows the data (See chart 1).

“While more organisations are now comfortable in putting more employees below the “meets expectations” category, increment differentiation between the top and average performers continues to be the same as in 2019. The consumer products industry has been more aggressive in sharpening the bell curve, while the life sciences sector has made minimum changes,” said the report.

It added that fewer companies have decided to give out increments at all. Only four out of ten have taken the decision to pay employees higher than before. Over a quarter of companies are still undecided on increments, according to the report (see chart 2).

Fewer than ten per cent of the companies have given double digit increments, according to the report. Those that had their increment cycle close before the lockdown gave higher increments.  

Source: Deloitte Touche Tohmatsu India 2020 Workforce and Increment Trends Survey Results (phase II)