Private companies to have better pay hikes in 2021: survey

Delhi: A Survey conducted by global human resource consultancy Aon has indicated that individuals working in Indian organizations are expected to get better pay hike in 2021 as compared to 2020.

Bloomberg revealed that at present organizations are wagering on ascend in customer interest because of upgraded government spending and bumper rainfall to neutralize the losses caused to economy due to coronavirus pandemic. It is likely that companies doing business in e-commerce, energy, financial institutions and pharmaceuticals would offer an average hike of 7.3% to their employees in 2021. 

The Aon review added that the normal climb offered by Indian organizations in 2020 was 6.1% which was the lowest in the most recent 14 years. The information for the review was gathered from 1,050 organizations across 20 industries. 

The survey also mentioned that even though an increase in pay hike is not a given in 2021, at least 87% companies are planning pay hikes compared to 71% in 2020. While 47% of the companies are likely to offer over 8% hike compared to 44% in 2020, around 14% companies may offer zero pay hike in 2021 versus 29% in 2020.

Addressing Mint, a partner at Aon, Nitin Sethi said, “Despite the gravity of the COVID-19 pandemic in India and its deep impact on the economy, organizations in India have shown tremendous resilience and a mature view on talent.”

Business and HR leaders settled on hard choices in second and third quarters of 2020 and are currently wagering on the green shoots of improving buyer interest. They see the need to put resources into ability as a basic piece of their recuperation and development possibilities, Sethi added.

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