India financial year 2018-2019 hike and bonus in software industry

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As far as other industries are concerned, as per the findings of the survey, the average salary increments that employees across 20 sectors are expected to receive is projected to be around 9.4%. The IT sector in India witnessed a sudden boom nearly two decade in early the 2000s. At the time, the IT industry was in its nascent stages of growth in the country. Consequently, employees received double-digit bonuses each year. However, this trend has been changing slowly due to the industry reaching its maturation point. Experts believe that the companies are reacting to tight increment budget in two ways. Firstly, they are giving low increments at the top with protected pay increases at the junior levels. Secondly, they are rewarding the top performers while gradually decreasing the increment for the average performers. While a lot is being done to retain top performers and average performers are losing their edge in the industry due to a cash crunch, the report highlights that professionals in India still have a preference for jobs in the IT sector.

Samantha is all set to become a bridal makeup artist Click here for IndiaToday.in’s complete coverage of the coronavirus pandemic. Now, the state is such that the companies are running on a tight increment budget, proof of which can be seen in the salary hike projections for this year. While the IT sector is projected to give an average hike of 9.5% in 2018, the third-party IT service companies, which a major employer in the IT sector in India are projected to give an average hike of just 6.2%, wrote the Economic Times quoting an annual salary increment survey by Aon India Consulting. People working in the IT sector in India have taken it to the social media to express their anger over the low salary increment this year. Some have even pointed out that the trend has been in the know for a long time now and that it is likely to stay. And the industry experts seem to be agreeing with their observation as they believe that over the coming years, employers will rely more on bonuses and annual cash payouts to reward talent because of a crunch in the salary increment budget.

Copyright © 2021 Living Media India Limited. For reprint rights: Syndications Today Speak Now Watch: Suspension of 12 Opposition MPs biggest in Rajya Sabha history Watch: Heavy rains lash Andhra Pradesh, Tamil Nadu Furthermore, analysts at Willis Towers Watson India believe that employers are likely to reserve a greater share of their increment budget for pay-out to the employees with the skills that are short in supply. One time bonuses are a good option as they are impactful and make the employee feel valued for their performance. Companies are also likely to pick candidates with high potential and give them one-time retention bonus that will be paid only if the employee stays in the company for a specified period of time. Apart from this, deferred bonus plans are also trending due to their ability to retain high potential talent. Paytm’s D-Street debut disappoints as it lists at 9% discount

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