Companies in India are expected to grow by an average of 7.3 per cent this year, according to a survey. Deloitte Touche Tomatsu India LLC (DTTLP) 2021 Workforce and
Companies in India are expected to grow by an average of 7.3 per cent this year, according to a survey. Deloitte Toche Tomatsu India LLP (DTTLP) 2021 Workforce and Increment Trends Survey also said that the average increment this year will be more than 4.4 per cent in 2020, but lower than the 8.6 per cent given by companies in 2019. Ninety-two percent of companies surveyed plan to give increments in 2021 compared to 60 percent last year. Launched in December 2020 as the B2B India-Specific Survey, the survey covers 400 companies in seven sectors and 25 sub-sectors.
“The average growth of companies in India is projected to increase from 4.4 per cent to 7.3 per cent by 2020. This 7.3 percent estimate increment is lower than the 8.6 percent average increment in 2019. ” The survey said there were signs that economic recovery, business and consumer confidence and improving corporate profits were faster than expected as incremental budgets were on the rise. According to research, 20 percent of companies plan to give double-digit increments this year compared to just 12 percent in 2020.
It said only 30 per cent of the plan was to compensate employees through higher increments or bonuses for the previous year. According to the survey, the life sciences and information technology (IT) sectors offer the highest increments, while the manufacturing and services sectors continue to offer the lowest pay rise. “Life Sciences is the only sector that can match its 2019 increment levels. For others, the average increment in 2021 is expected to be lower than in 2019. “Only digital and e-commerce companies are expected to offer double-digit average increments in 2021.
The survey said growth in hospitality, real estate, infrastructure and energy companies was the lowest. Speaking on the occasion, DTTLP partner Anandorup Ghose said that 2020 was a good year compared to 2019 due to Kovid. Average India 7.21 per cent growth in 2021 is still very low compared to 8.6 per cent in 2019. Despite the rapid recovery in business activity, Ghose said companies are managing compensation budgets responsibly, taking into account the stability of their fixed cost increase. And after March 2020, most companies have decided not to give increments or to defer them until further clarification, and about 25 percent of companies will cut their senior management’s in wages. Also at the All India level, voluntary certification has declined from 14.4 per cent in 2019 to 12.1 per cent in 2020. Involuntary attrition has increased in the IT and services sectors, while voluntary certification in the sectors has declined.