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<keyword id="995897" type="UNKNOWN" weightage="20" keywordseo="average-salary-hikes">Average salary hikes</keyword> and voluntary attrition levels in top sectors declined during April-June quarter over last year, amid uncertain hiring prospects and lesser job opportunities, says a survey. According to online recruitment and career solutions portal Wisdomjobs.com, most industries witnessed conservative appraisals that were considerably lower than the two-digit salary hikes seen in the previous year. "Most sectors have seen conservative appraisals this quarter on the back of several external factors that impacted them in the previous two quarters," Wisdomjobs.com founder &amp; CEO Ajay Kolla said. Kolla further said, "hiring outlook of Indian companies, although still positive, will be characterised by a wait-and- watch approach as they come to terms with the real impact of automation - especially in the IT sector - and the consequent need for re-skilling their employees". This trend is likely to continue for a couple of quarters before picking up again, he said. The survey noted that while layoffs, especially in the IT sector, contributed to maintain the overall attrition levels, voluntary attrition levels declined in the first quarter of this year. "This can be attributed to the uncertainty in the job market, and the consequent slowdown in hiring across most sectors," the survey said. Amid conservative appraisals in most sectors, the survey said the IT industry was in the forefront with several companies deciding to defer appraisals for middle and senior level staff. The healthcare and retail sector topped the <keyword id="6355281" type="UNKNOWN" weightage="20" keywordseo="salary-hike">salary hike</keyword> chart at 10.8 per cent, followed by hospitality and IT with 9.9 per cent and 9.8 per cent, respectively, the survey added. <keyword id="4860497" type="ORGANIZATION" weightage="20" keywordseo="fmcg-telecom">FMCG &amp; Telecom</keyword> gave a hike of 9.6 per cent, while employees in infrastructure and manufacturing got salary hike of 9.2 per cent and 9 per cent, respectively. Hyderabad, Mumbai &amp; <keyword id="6354925" type="UNKNOWN" weightage="20" keywordseo="Kolkata">Kolkata</keyword> show nearly similar rates at 8.9 per cent, 8.7 per cent and 8.5 per cent, respectively. The capital city Delhi showed the lowest hike rate at 7.7 per cent.

Salary hikes, voluntary attrition decline in top sectors in Q1 FY18

As per the results of a research by the Hay Group division of the global people and organisational advisory firm Korn Ferry, Indian employees can expect pay increases of average 10.3%, across their job roles this year, which is a bit less than the actual average salary increase of 10.4% across India Inc in 2015. 
 
The annual report has broken down jobs into four levels - Clerical and operational, supervisory and junior professionals, middle management and seasoned professionals, and senior management and executives. While there is no change in the hike of middle and clerical and operations levels, the percentages for senior and supervisory levels are down by about 0.2-0.3%. Over all, the increments are expected to range between 10-10.5%. 
 
Talking about industries, chemicals and high technology industries are expected to be the leaders in terms of pay raises. In fact, high tech is the only sector where increments would be higher as compared to last year. On the other hand, the biggest decline can be expected in auto sector. 
 
"This year's compensation study predicts the pay raise to be more or less the same or slightly lower than last year. At this point, the general market can expect the median salary increase and salary hike figure to stay between 10%-11%," said Amer Haleem, country manager, productized services, Hay Group. 
 
"Even though there is hardly any change in increment percentage in the last 4-5 years, what's changing is the play within that overall percentage. Companies are now making a sharp differentiation between high, average and low performers. The increment grids have a broader range spread, which directly brings the focus on the differentiation in rewards, for different levels of performance. Variable pay plans for many organisations have been modified to lay emphasis on organization performance. Organization weightage has a key role to play at senior and middle management and it also cascades down to junior management," he added.

You will get paid less in 2016 than in 2015. Brace up!

New Delhi, Feb 19 () Corporate India is expected to roll double-digit salary hike this appraisal season and the average appraisals in 2020 will be higher than the annual increment of 2019, says a survey. According to the findings of a new TimesJobs survey, salaries across different sectors would witness an increment of up to 30 per cent. The TimesJobs survey titled 'Decoding Appraisal Trends for 2020' that recorded responses of 1,296 hiring managers from different industry verticals noted that a majority (80 per cent) of the hiring managers claimed that the average appraisals in 2020 will be higher than the annual increment of 2019. Around 41 per cent of HR managers feel that location-wise, the IT capital of the country Bengaluru, would lead the appraisal front this year. While professionals from Delhi-NCR and Mumbai would bag the second and third highest appraisals this year. The survey further noted that most HR professionals believe that the IT sector would outshine all the other sectors this appraisal season, followed by media and entertainment and healthcare sectors in the second and third position, respectively. Further, the TimesJobs survey findings revealed that BFSI, BPO, and automobiles sectors may witness dull appraisals in 2020 largely owing to dismal business scenario in these sectors at this point. "Although, various factors have influenced the appraisal models over the years, but in this cut-throat market competition where every company wants to own the best 'talent' available, monetary satisfaction continues to play a crucial role in attracting and retaining the high potential employees," said Sanjay Goyal, Business Head, TimesJobs and TechGig. Most (68 per cent) hiring managers surveyed by TimesJobs said that middle-level professionals will receive the best appraisals this year -- about 20-30 per cent in their salary. Moreover, as many as 44 per cent of HR professionals said top-level professionals will bag the highest appraisal this year. The increment at senior levels could be up to 40 per cent, the survey said. DRR SHWSHW

India Inc to offer double-digit salary hike this year: TimesJobs survey

As the appraisal season approaches, reports suggest that start-ups will be leading the way with giving out biggest pay hikes this appraisal season. On the other hand, big and established companies plan to roll out lower increments. 
 Talking of figures, start-ups and early stage companies will give out average increments of 15.6% this year, while last year the figure was 14%. In comparison to this, the rest of <keyword id="46431" type="CITY" weightage="100" keywordseo="India-Inc">India Inc</keyword> will be rolling out a healthy 10.3% pay hikes, a bit lower than last year’s 10.6%. These numbers have come from Aon Hewitt's annual Salary Increase Survey 2015-16, which was done over 700 companies in India. 
 
The survey also reveals that organisations that employ more than 15,000 people are looking forward to announcing lower salary increase numbers, that of 9.8%, as compared to other India Inc. companies. 
 
"The larger the brand, the lesser its need to pay high increments," Anandorup Ghose, Partner, Aon Hewitt, told ET. "For start-ups, salary increases are a necessity, and not a luxury. E-commerce companies and start-ups have to build their employer brand," he added. 
 
Speaking of performance, top performers would be taking home 1.8 times the average increments, owing to the 'pay for performance' agenda that several companies are using. 
 
"Indian companies are taking very clear steps to arrest the steady increase in compensation budgets. The lower inflation rates in the economy has also helped companies in deciding on the reduced salary increases without creating too much of a disruption in the lives of employees," Ghose added. 
 
<a href="http://timesofindia.indiatimes.com/thumb/msid-51007046,width-400,resizemode-4/51007046.jpg">Image source</a>

Start-up employees likely to get more appraisals than rest of India Inc

Every year, there comes a month when workplaces are abuzz with what the company’s plans are for rewarding employees, while your mind is pondering - who will get a promotion, whether I will get a handsome <keyword id="6355281" type="UNKNOWN" weightage="100" keywordseo="salary-hike">salary hike</keyword> or not, will they just hand me a promotion etc. As much as everyone wants a good appraisal from the <keyword id="6362609" type="POSITION" weightage="100" keywordseo="Manager">manager</keyword>, it’s fretful for us to face our bosses in the meeting room face-to-face as he is busy scrutinizing the self-applauded review form we have filled up. It’s that one moment in your life that comes every year when you are at your optimistic best despite knowing your boss and his manipulative ways too well. 
 

	While the boss has to get his hands dirty in reviewing its employees in a fixed organizational budget, you still have hopes as high as the Burj Khalifa. And then when the moment comes, the skyscraper in your head comes falling down. It crashes and explodes from within- fire, venom, and hate and sometimes humour too, except that these emotions don’t get an outlet. You swallow your pain, and put up a smiling face showing the undying spirit till you walk out of that boiler room and finally EXPLODE in front of colleagues, friends or maybe in the washroom.

	You’re not alone, it happens with everyone, and so here are 9 awkward boss-employee conversations that unfold in the nail biting moments within an appraisal meeting room:

9 Awkward Boss-Employee Conversations During Appraisal Meetings

<ul><li>As much as 70% of the employees at the IT major <keyword id="10863" type="COMPANY" weightage="20" keywordseo="CapGemini">Capgemini</keyword> are getting a higher single-digit pay hike this year. </li><li>Its 84,000 employees will have increased pay, starting April 1. </li><li>The IT company rolled out over 4,000 job offers to lateral hires and to 2,000 freshers — and will absorb them all. </li><li>On similar lines, digital payments startup <keyword id="7349800" type="UNKNOWN" weightage="20" keywordseo="bharatpe">BharatPe</keyword> gave its employees a 20% <keyword id="6355281" type="UNKNOWN" weightage="20" keywordseo="Salary-hike">salary hike</keyword> while Cognizant announced 25% more pay on the base salary for the month of April.</li></ul>A large number of Indian companies are reeling under the Corona-induced lockdown, and hence choosing to either retrench or cut salaries. However, there are a few delightful exceptions who are offering hikes, even during difficult times. IT major Capgemini is giving 70% of its employees a higher single-digit pay hike this year. That helps 84,000 employees who will enjoy increased pay, starting April 1. The remaining staff will get appraisals in July, TOI <a href="https://timesofindia.indiatimes.com/business/india-business/capgemini-india-increases-salaries-grants-allowances/articleshow/75149348.cms">reports</a>. It is also one of the select few companies that is <a href="https://www.businessinsider.in/careers/news/tcs-cognizant-capgemini-and-other-top-giants-who-are-not-letting-go-of-their-new-hires/articleshow/75136446.cms">absorbing all the new campus hires</a> it had extended offers to. It gave 4,000 job offers to lateral hires, and to 2,000 freshers in the quarter ending March. “This is a black swan event and at this point it’s not a question of timeline, but how our business will evolve. And we have a clear view as to what our economic model is going to look like and we don’t see any reason to discontinue this approach,” Ashwin Yardi, CEO at Capgemini India <a href="https://timesofindia.indiatimes.com/business/india-business/capgemini-india-increases-salaries-grants-allowances/articleshow/75149348.cms">told</a> TOI. The French IT multinational, with a heavy presence in India, is also giving away cash allowances worth ₹10,000 to employees who are not left with any means to relocate and are stranded without accommodation. In fact, the ‘shift allowance’ will now be extended to its ‘work from home’ employees as they practice social distancing. The company said that it will focus on retaining employees — even those on bench, who are not working on billable projects. Usually the grace period for those on bench is up to 60 days and IT majors generally have 8% of employees on the bench. Cognizant and BharatPe also hike salaries amid lockdown Digital payments startup BharatPe also decided to give its employees a hike. “I closed the appraisals two days ago and I have given a 20% hike to my employees. To me it’s like cycles will come and go, but can you keep your sanity and be ready to build a bigger business,” Ashneer Grover, CEO and co-founder, Bharatpe <a href="https://www.businessinsider.in/business/startups/news/bharatpe-gives-20-hike-to-its-employees-in-the-wake-of-the-coronavirus-crisis/articleshow/75091933.cms">told</a> Business Insider in an interview earlier. American IT multinational Cognizant too said it will bump wages for those up to the associate level. That’s almost two-thirds of its 200,000-strong workforce in India. It also announced 25% more pay on the base salary for the month of April to its employees in India and the Philippines as a “sign of gratitude” for their consistent efforts even during the pandemic. See also: <a href="https://www.businessinsider.in/careers/news/tcs-cognizant-capgemini-and-other-top-giants-who-are-not-letting-go-of-their-new-hires/articleshow/75136446.cms">TCS, Cognizant, Capgemini and other top giants who are not letting go of their new hires</a> <a href="https://www.businessinsider.in/careers/news/accenture-launches-people-work-connect-to-help-fired-employees-find-jobs/articleshow/75144624.cms">Accenture launches People+ Work connect to help fired employees find jobs</a>

Capgemini India, Cognizant and others who are giving salary hikes in times of Coronavirus

<ul><li>India’s working professionals can expect an average salary hike of nearly 9.7% in 2019. </li><li>Companies in India are projecting higher salary hikes in sectors including Consumer Internet Companies, Professional Services, Life Sciences, Automotive and Consumer Products sector. </li><li>The voluntary attrition rate has also declined in Indian corporates — from 18.5% in 2013 to 15.8% in 2018.</li></ul>Salary hikes in India may not be as attractive now as before, with fewer sectors giving out double digit hikes. However, there are at least five sectors that still project double digit<a href="https://economictimes.indiatimes.com/jobs/say-goodbye-to-double-digit-hikes-as-salary-budgets-mature/articleshow/68271421.cms"> increments</a> in salaries in 2019, according to the latest survey by Human Resource firm Aon Hewitt. These include consumer Internet companies, professional services, life sciences, automotive and consumer products sector. While the top skills fetching higher salary increment are big data analytics, digital cloud computing, artificial intelligence, cyber security and machine learning. Overall, India’s working professionals can expect an average salary hike of <a href="https://www.business-standard.com/article/companies/india-inc-employees-can-expect-a-salary-hike-of-9-7-this-year-report-119030501017_1.html">nearly 9.7%</a> in 2019, thanks to the narrowing increment budgets. While the top layer is expected to get a maximum increment of 15.6% based on performance and productivity. The report stressed that salary hikes have been descending from high double digits to significantly lower across many sectors and finally dropping down to single digit for most sectors. Owing to high domestic demand and low inflation, the increments projected in 2019 will be stable but still favourable at 9.7%, the report highlighted. Over the years, the voluntary attrition rate has also <a href="https://www.gadgetsnow.com/tech-news/salary-increments-likely-to-be-better-than-last-year-in-most-sectors-survey/articleshow/68280652.cms">declined</a> in Indian corporates — from 18.5% in 2013 to 15.8% in 2018. "The increment projections in other sectors are also a reflection of the expected growth prospects during the year. With government focus on infrastructure investment, sectors such as cement, metal, engineering services saw a revival in demand and an improvement in increment projections for 2019," said Aon. The report surveyed over 1,000 companies across more than 20 industries, has found that the salary increase ticked off double digit growth between 2010-2016, stabilizing at 9.3% in 2017. With the appraisal season around the corner, the companies are likely to announce salary hikes starting April. See also: <a href="https://www.businessinsider.in/campus-placements-at-iim-mdi-tiss-iift-see-salary-packages-above-2-million/articleshow/67898696.cms">India’s B-schools are seeing higher salary packages for graduates — and it’s not just IIMs</a> <a href="https://www.businessinsider.in/accenture-bcg-dominate-campus-placements-at-business-schools-in-india/articleshow/68045145.cms">Consulting firms Accenture, BCG dominate campus placements at India’s B-schools this year</a> <a href="https://www.businessinsider.in/a-whopping-40-of-indias-women-engineers-dont-have-jobs-because-of-rampant-sexism-at-workplace/articleshow/67486684.cms">A whopping 40% of India's women engineers don't have jobs because of 'rampant' sexism at workplace</a>

These 5 sectors are the only ones projected to see double digit salary hikes this year

New Delhi, Salary hike in senior level job roles is expected to reach an average of 20 per cent this year, as nurturing talent and fostering innovation remains a key focus area for companies amid the country's buoyant economic conditions, says a report. According to the <keyword id="21039371" type="General" weightage="20" keywordseo="michael-page" source="keywords">Michael Page</keyword> <keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword> Salary Guide 2024, there is a resurgence in hiring within traditional industries, particularly evident in the continued high demand for manufacturing and operations roles. Additionally, there's a notable surge in the need for professionals skilled in data analytics, generative AI, and machine learning across various sectors. The annual guidance report covers the key sectors of BFSI, engineering &amp; manufacturing, finance &amp; accounting, healthcare &amp; lifesciences, human resources, legal, compliance, procurement &amp; supply chain, property &amp; construction, sales &amp; marketing, and technology. According to the report, India's 6 per cent GDP growth coupled with significant domestic investments and independence from external factors, positions India uniquely in the region, even amidst global challenges. "With India's economy displaying such resilience and optimism, and surpassing its pre-COVID performance, the focus is now on harnessing this potential. Nurturing talent and fostering innovation thus remains a key," said <keyword id="21190739" type="General" weightage="20" keywordseo="ankit-agarwala" source="keywords">Ankit Agarwala</keyword>, Managing Director at PageGroup. <keyword id="21190740" type="General" weightage="20" keywordseo="agarwala" source="keywords">Agarwala</keyword> further noted that the IT services industry, a cornerstone of the Indian economy, is witnessing a phase of recalibration. Companies are moderating their approach to salary increments, with expected hikes around 8 per cent-10 per cent. "Industries like consumer, renewables, finance, and healthcare are flourishing, bolstered by investments from local and domestic companies," Agarwala said. Sector-wise analysis showed that in IT &amp; Technology, the hike range varies from 35-45 per cent for junior employees, 30-40 per cent hike for mid-level executives, and 20-30 per cent increment for senior management. The property and construction sector is offering 20-40 per cent hike to juniors, 25-45 per cent hike to middle-level executives and a 20-40 per cent salary appraisal to seniors. "As we delve deeper into 2024, the employment narrative in India is about more than just salaries. Flexibility, work culture, and professional growth opportunities are increasingly pivotal in job transitions, reflecting a maturing and holistic employment ecosystem," said <keyword id="21190738" type="General" weightage="20" keywordseo="anshul-lodha" source="keywords">Anshul Lodha</keyword>, Managing Director at Page Group. Michael Page is a leading global recruitment firm specialising in permanent, contract, and temporary recruitment. Michael Page operates in 37 countries worldwide and has a strong presence in India.

Senior job roles to see avg 20% hike on buoyant sentiment: Michael Page

<ul><li>‘Digitally skilled’ employees and those working in areas of data science, artificial intelligence and machine learning, are expected to receive higher increments. </li><li>In an interview with Business Insider, <keyword id="203878" type="PERSON" weightage="20" keywordseo="Ajay-Shah">Ajay Shah</keyword>, VP and head of recruitment at <keyword id="6381892" type="COMPANY" weightage="20" keywordseo="TeamLease-Services">TeamLease Services</keyword> said that the salary hikes can be around 14-18% for digital roles. </li><li> It is safe to say that the top skills fetching higher salary increment would be big data analytics, digital <keyword id="6373689" type="UNKNOWN" weightage="20" keywordseo="Cloud-computing">cloud computing</keyword>, artificial intelligence, cyber security and machine learning.</li></ul>With the appraisal season around the corner in April, employees are waiting with bated breath. However, they may not be as attractive now as before, with few sectors expected to dish out double digit increments. Only ‘digitally skilled’ employees will not have little to worry about, especially working with data science, artificial intelligence and machine learning. “The median salary hike at the organisational level will fluctuate between 8% to 14% this year. However, the salary hikes across the digital areas will vary from 14% to 18%,” said Ajay Shah, VP and head of recruitment at TeamLease Services in an interview with Business Insider. According to Shah, salary hikes in the digital areas will outshine the average hikes across industries. Skills are the most in demand for recruiters are also popular with companies which want to retain them. And, these skills are big data analytics, digital cloud computing, artificial intelligence, cyber security and machine learning. While the IT industry continues to grow, doling out higher pay packets and <keyword id="1458566" type="PERSON" weightage="20" keywordseo="digital-skills">digital skills</keyword>, the ecommerce and professional services sector are also expected to witness above average increments. Amongst sectors, those will offer little are those in trouble like automobile and telecom companies. Skills versus salaries Apart from slowdown and other financial troubles, companies might also be taking a chunk of funds intended for hikes and divert them to re-skilling. Shah believes that the enterprises in India are now striving to become ‘tech- enabled’ for better productivity. Hence, they are investing in reskilling their employees via learning and development initiatives. This might also impact the salary hikes of the digitally unskilled. “Freshers are going ahead with average starting salaries and the mid-level employees have aspirations. But, there is a skill gap. So, organisations investing in reskilling programmes is also a kind of incentive to the employees,” Shah reiterated. Increments to touch a decade-low A survey by Human Resource firm <keyword id="6462982" type="COMPANY" weightage="20" keywordseo="aon-hewitt">Aon Hewitt</keyword> pegged the average pay hike at 9.1% in 2020. That happens to be the lowest in a decade. It anticipates the increments in the ecommerce and professional services space at 10%. Last year, the average increment stood at 9.3%. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
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 "Despite economic challenges in 2019, organizations in India are taking a positive view. Pay increases in India continue to be the highest in the region. A big reason for India's higher salary increase, as compared to other growing economies, is the high inflation rate and the war for key talent and niche skills," <a href="https://www.livemint.com/news/india/indian-firms-may-offer-9-1-pay-hike-lowest-in-decade-11582022153432.html">said</a> Tzeitel Fernandes, Partner, Rewards Solutions at Aon. The <a href="https://www.businessinsider.in/careers/news/the-salary-hikes-in-india-will-be-the-best-in-asia-next-year-but-inflation-will-eat-most-of-it/articleshow/72332600.cms">global salary forecast by Korn Ferry</a>, a management consulting company also projected India’s salary growth at 9.2% — the best in Asia. That is much higher than the average salary increase in the US at 3%. However it needs to be mentioned that inflation in India and developed economies are not comparable. “Compensation programmes need to be regularly reviewed to make sure they align with changing business and market conditions. Companies take a broader perspective by defining and agreeing upon their own measures of cost drivers, business strategy and local trading conditions,” said Benjamin Frost, who is the global general manager of Korn Ferry. See also: <a href="https://www.businessinsider.in/careers/news/indian-startup-dream11-offers-as-much-as-270-hike-in-salary-for-a-job-well-done/articleshow/73068468.cms">This Indian startup offers as much as 270% hike in salary for a job well done</a> <a href="https://www.businessinsider.in/careers/news/these-are-the-starting-salaries-offered-to-b-school-students-in-india/articleshow/74168696.cms">These are the starting salaries offered to B-school students in India</a> <a href="https://www.businessinsider.in/business/news/india-inc-to-offer-double-digit-salary-hike-this-year-timesjobs-survey/articleshow/74210093.cms">India Inc to offer double-digit salary hike this year: TimesJobs survey</a>

Don’t expect more than 10% salary hike this year unless you are an AI expert

<ul><li>According to <keyword id="6356108" type="COMPANY" weightage="20" keywordseo="deloitte-india">Deloitte India</keyword>’s 2020 Workforce and Increment Trends Survey, almost half of the companies in India are projected to extend less than 8% increments. </li><li>Only 8% companies are expected to offer over 10% hikes in 2020. </li><li>The average increment in India is expected to be nearly 7.8% this year — compared to 8.2% last year. </li><li>IT product and e-commerce employees have little to worry about as they are expected to offer double digit salary increases.</li></ul>This year, appraisal season might come and go without making a difference to your pay packet. According to Deloitte India’s 2020 Workforce and Increment Trends Survey, almost half of the companies in India are projected to extend less than 8% increments. Moreso, a mere 8% of companies could offer hikes over 10% in 2020. It means the average salary increment in India is expected to be nearly 7.8% this year — compared to 8.2% last year. As per the survey, senior management has more to worry about. These employees will receive two-thirds of the increment given to middle management employees. “The decrease in salary increment budget is in line with the higher margin pressure on companies, economic headwinds, and the need to gradually slow down white-collar pay growth in India to become more globally competitive,” the survey said. This figure drops even further when adjusted to the employee headcount of a company. As per the findings from Deloitte, IT sector aside, the pay hike slumps to 6.8% for all sectors, depending on the company size. This is especially applicable to the manufacturing sector, which has witnessed the sharpest downturn over the past few quarters. This is followed by infrastructure, real estate, shadow banks and telecom. IT and e-commerce employees have nothing to worry However, IT product and e-commerce employees have little to worry about as they are expected to offer double digit salary hikes. This is because automation and digital skills are high in demand in the job market. The salary hikes across the digital areas will vary from 14% to 18%, <keyword id="203878" type="PERSON" weightage="20" keywordseo="Ajay-Shah">Ajay Shah</keyword>, VP and head of recruitment at <keyword id="6381892" type="COMPANY" weightage="20" keywordseo="TeamLease-Services">TeamLease Services</keyword> told Business Insider. “Salary increments in India are likely to transition from a more classical rule-bound approach to one which is far more based on individual performance and skills. Roles that combine functional knowledge with technology are likely to command a significant premium, making pay decisions far more driven by skills that employees bring as opposed to simple annual corrections,” said Anandorup Ghose, partner at Deloitte India. Over the past years, there have been a lot of back and forth over the rationale behind pay hikes. “There is a need for greater responsibility in this process of salary budgeting as compensation cost ratios are increasingly becoming a sore point in boardrooms across the country. The talent market priorities are different from what they were five years ago, and our pay budgeting process and data needs to reflect that,” Ghose added. Most of the companies in India differentiate pay increases on the basis of past-year performance while a few focus on employee potential. See also: <a href="https://www.businessinsider.in/careers/news/dont-expect-more-than-10-salary-hike-this-year-unless-you-are-an-ai-expert/articleshow/74220754.cms">Don’t expect more than 10% salary hike this year unless you are an AI expert</a>

Merely 8% companies in India expected to offer more than 10% salary hikes, says Deloitte survey

In October 2013, Microsoft put an end to the <keyword id="2875197" type="UNKNOWN" weightage="80" keywordseo="Bell-curve-system">Bell Curve system</keyword> of appraisals to curb the bureaucratic, political culture that undercut its people’s ability to compete and was also responsible for killing innovation and teamwork in the company. The move was soon followed by other companies such as Cisco too. 
 

	Economic Times spoke to some top professionals from these organization to know about the system and the reasons why they doing away with it and here is what they had to share. 
 <keyword id="276812" type="PERSON" weightage="80" keywordseo="Bhaskar-Pramanik">Bhaskar Pramanik</keyword>, Chairman, Microsoft India 

	The relative grading system in engineering schools is based on the principle that the marks scored by the students in any test will follow a bell curve. The mean score may be high or low depending on the difficulty of the test, but there will be a standard deviation, with a small cluster of students with scores markedly higher than the mean and a cluster far lower than the mean. 
	 
	It's a system that works well in exams, which are individual focused, but it has its limitations in an organisational setting, where teamwork is involved. "Today, a person is appraised not just on individual impact, but on teamwork," says Pramanik. "To succeed, you have to be smart, you have to be collaborative and you have to develop yourself based on feedback." 
 <keyword id="1324005" type="PERSON" weightage="80" keywordseo="Seema-Nair">Seema Nair</keyword> Director HR, Cisco Sytems, India &amp; <keyword id="8470" type="ORGANIZATION" weightage="80" keywordseo="SAARC">SAARC</keyword> The main feature of Microsoft's new system is the stress it lays on continuous feedback. The appraiser and appraisee are required to do at least four "connects" every year, where the discussion is around what was achieved in the past quarter, what is planned in the next quarter and what could have been done better. "The discussion is both on what has been achieved as well as how it has been achieved," says <keyword id="2873445" type="UNKNOWN" weightage="80" keywordseo="Microsoft-India-Human-Resources">Microsoft India Human Resources</keyword> head <keyword id="922603" type="PERSON" weightage="80" keywordseo="Rohit-Thakur">Rohit Thakur</keyword>. "For example, one of the issues discussed is how you have reached out and helped others. It's helping people get a sense of what success looks like." Before Microsoft, Thakur spent 12 years with <keyword id="45528" type="CITY" weightage="80" keywordseo="GE">GE</keyword>, the original champion of the bell curve. Today, he's responsible for eliminating all the vocabulary associated with the concept. "We no longer label a person as "star" or "non-performer." Every individual has bad years and good years. The key measure now is impact. That's the basis on which everyone is rewarded." he says. One of the problems with the bell curve system is the direct link it creates between its five categories and salary hikes. 
	 
	At Microsoft, salary hikes are now left to team managers, who must take a call on how to distribute the sum budgeted to them. A manager can divide this equally amongst his team, but most would recognize this to be a recipe for disaster in the long run. The managers know they need to differentiate and ensure higher rewards to those who have greater impact. Else they will be left with a low performing team.
 

	Rohit Thakur Hr Head, Microsoft India
 Compare this to the earlier process described in Microsoft's Lost Decade, where managers would gather in one room during appraisal time to haggle over where their people should be put in the department's bell curve. Microsoft engineers who were clued in understood it was not just enough to impress their own boss, but bosses of other teams as well, which meant making time to "schmooze as many managers as possible." <keyword id="194500" type="PERSON" weightage="60" keywordseo="Rajiv-Kaul">Rajiv Kaul</keyword>, now vice chairman of <keyword id="194502" type="CITY" weightage="80" keywordseo="CMS-Info-Systems">CMS Info Systems</keyword>, was Microsoft India's first country head. He says: "The bell curve appraisal is an unnecessarily aggressive American invention that damages human relationships. In large organisations, politics takes over. I've seen how it worked, so I never used it in CMS." Another large organisation to recently axe the bell curve is Cisco, which announced the decision in November 2014. Since then, Seema Nair, Director of HR, has been busy training the 900 managers who appraise <keyword id="244727" type="COMPANY" weightage="80" keywordseo="Cisco-India">Cisco India</keyword>'s 10,000 employees on the nuances of the new system, which are in many ways similar to Microsoft's. "Abandoning the bell curve is a bold move and it sent shock waves through the organisation," she says. "The senior leaders intuitively get it and they're the early adopters. But there will be some resistance down the ranks, as there is with any major change." 
	 

	Nair's biggest challenge is to get the quarterly 'sync up' conversations between appraisers and appraisees running smoothly (similar to Microsoft's 'Connect'). The bell curve system also mandated open conversations, but they never actually happened. "In a ranking system, employees would just be interested in knowing their rank. They would tune out to the rest," says Nair. 
	 

	This disinterest in feedback has always been a characteristic of the Indian workplace and bell curve appraisals have failed to address the problem. The new appraisal systems being implemented by Microsoft and Cisco are taking the issue of feedback head on. 
	 
	"Indian managers are hesitant to give feedback to their employees because they're afraid of confrontation," says Mohinish Sinha, head of leadership and talent practice at Hay Group. "While appraising their people, managers tend to focus on results rather than how the results were achieved. So you end up celebrating bad behaviour." The Hay Group has been advising several clients interested in moving away from bell curve appraisals, but none of them have yet taken the plunge. "They're flirting with the idea but they're afraid of where it will take them. It's basically a change management issue. We tell them to take courage," says Sinha. 
	 
	(Image: Reuters)

Know why Microsoft, Cisco do away with the Bell Curve appraisal tool

<ul><li><keyword id="6214644" type="UNKNOWN" weightage="20" keywordseo="Dream11">Dream11</keyword>, an Indian gaming and sports startup is redefining the human resource function — adopting a rare culture. </li><li>The gaming startup focuses on the designation of employee and not his remuneration at the previous company while extending job offers and compensation to its employees. </li><li>Every quarter, the employee is judged by some 25 coworkers based on the company’s core values — data, ownership, performance, user and transparency. </li></ul>Dream11, an Indian gaming and sports startup is redefining the human resource function - paving the way for a new culture. It not only allows employees to set targets themselves but also offers them the flexibility to do what they want to do, as long as they bring in the results. The company follows a pod structure — called a ‘dream team’ where product, tech, marketing, business analytics, and all other teams work together in pods — which refers to a group having a shared purpose. The employees can introduce their own ideas and set targets. “We don’t believe in bell curve. The culture and philosophy of how we work is completely different. We don’t have things like OKR, KRA and KPI individually set across the organisation. We only have one thing, which is a team target. Either the entire company achieves the target or we don’t,” <keyword id="2598207" type="PERSON" weightage="20" keywordseo="Harsh-Jain">Harsh Jain</keyword>, Co-Founder and CEO at Dream11 told Business Insider at the <keyword id="8514289" type="UNKNOWN" weightage="20" keywordseo="tie-global-summit-2019">TiE Global Summit 2019</keyword>. Salary hikes and appraisals The 11 year old gaming startup also breaks many traditional molds when it comes to appraisals. “From 15% to as high as 270% appraisals, we pay top of markets,” Jain said. “Everything is data driven for us. We do benchmarking of competitive companies which can poach from us. We see what they pay and then we pay at the 99th percentile,” he said. For new employees too, it focuses on the designation and not the remuneration at the previous company. The company has 200 employees. In fact, the drill to decide on appraisals isn’t the same either. It doesn’t let only managers rate the performance and make decisions. Every quarter, the employee is judged by 25 coworkers based on the company’s core values — data, ownership, performance, user and transparency. “If they get less than 7/10 rating on an average, they are given a warning. Two quarters in a row, final warning. Three quarters and you are out,” Jain said. <div type="Youtube" id="AVXqxHY4vV4" title="Dream11, an Indian gaming and sports startup is redefining the human resource function" thumbUrl="https://i.ytimg.com/vi/AVXqxHY4vV4/mqdefault.jpg"></div>

 See also: <a href="https://www.businessinsider.in/business/startups/news/dream11-will-sell-sports-merchandise-and-game-tickets-on-fancode/articleshow/72066243.cms">Dream11 backed Fancode will sell sports merchandise and game tickets</a> <a href="https://www.businessinsider.in/business/startups/news/dream11-founder-tells-how-he-struggled-before-his-first-funding/articleshow/72057606.cms">‘I heard 150 noes before first funding’- reveals one of India's newest unicorns Dream11</a> <a href="https://www.businessinsider.in/dream11-is-eyeing-the-unicorn-tag-riding-on-ipl-and-cricket-world-cup-in-2019/articleshow/68458528.cms">2019 may be the biggest year for this 11-year old Indian gaming startup</a>

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