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

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

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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.

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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.

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