Good news for private employees, companies to take this step to benefit workers

A survey by global human resource consultancy Aon has shown that people working in Indian companies are expected to get a better pay hike in 2021 as compared to 2020.

Bloomberg reported that at present companies are betting on rise in consumer demand due to enhanced 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 survey added that the average hike offered by Indian companies in 2020 was 6.1% which was the lowest in last 14 years. The data for the survey was collected from 1,050 companies 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.

Speaking to 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."

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“Business and HR leaders made hard decisions in second and third quarters of 2020 and are now betting on the green shoots of improving consumer demand. They see the need to invest in talent as a critical part of their recovery and growth prospects,” Sethi added.