New Delhi: Good times are likely to return for a majority of Indian employees
Many startups are actively considering rolling out average raises of 15-25%, with top performers getting more as they face increasing challenges in attracting and retaining employees.
“We’re seeing tech-based start-ups improving their salary increases this year; we expect it to go back to four or five years ago when the average increase in this sector was around 12-15%,” said Anandorup Ghose, partner at consultancy Deloitte India. . HEY.
The financial daily quoted Roopank Chaudhary, human capital solutions partner at HR services firm Aon India, as saying that this time the salary increases will be the highest since 2015-2016. “Attrition is now significantly higher than it was then,” he said, mentioning that companies are opening up or giving each other cordons to retain key employees.
Startups Shiprocket, UpGrad, Simplilearn, CredAvenue, HomeLane, NoBroker and CashKaro told the publication that average increases in 2022 would likely exceed pre-pandemic levels.
The growth strategy of startups relies on retaining the best employees. Therefore, top performers are likely to get raises of up to 75%, while for those with relatively low salary levels, compensation could even double.
New-era companies are considering offering their employees higher bonuses, retention bonuses, and stock options tied to performance or seniority. More importantly, after raising $36 billion in 2021, startups are splurging on staff because they’re teeming with funds.
“Given the robust growth of our industry due to a promising macro economy, huge room for growth and the tailwinds of Covid over the past few years, annual monetary compensation increases have increased,” Saahil Goel , CEO of e-commerce shipping and enablement platform Shiprocket, which has forecast a more than 15 percent increase in payroll for the next valuations, told the daily.
He went on to add that company raises have always been forecast 5-6% ahead of the market, and sustained business momentum has led to an increase in the bonus pool for staff.
According to Swati Bhargava, co-founder of cashback site CashKaro, this year the increases will range from 15% to 75% for top performers.
Last year, digital debt trading platform CredAvenue jumped 25% on fixed compensation on average, while on annual bonuses it paid out up to 150% of target to top performers . “This year will be better; we have an optimistic outlook,” Joseph Nirmal, Vice President, People and Culture, told the daily.
Over the past two years, due to the disruptions caused by the Covid-19 pandemic,