Many employees in multinational corporations expected to receive their increments this fiscal, but that is not the case anymore because of the pandemic. Employees who are in mid and senior profiles got an increment at the end of 2018. We thought that we would get an increment in 2019 but that did not happen. Then it was expected that the company would hand out bonuses like they normally do in March-April. That however did not happen thanks to the pandemic," an employee with a multinational tech company said.
According to the survey, two factors have influenced these decisions: COVID-19, and timing of the increments. Those who had decided prior to march 2020 regarding increments have given higher increments as compared to those who didn’t. In addition, the survey report states that organizations which are expecting a decline of over 20% in revenue due to the effects of the pandemic have given low increments. No industry witnessed an average double-digit increment in 2020, the survey’s results showed.
Anandorup Ghose, a partner at Deloitte Touche Tohmatsu, said, “Pay increases have been slowing in india over the past few years in line with the trajectory of the economy and rising margin pressures. However, with COVID-19 pulling the global economy into a recession, organizations have had no choice but to reduce or halt increments as they evaluate every incremental rupee spent. When revenues are harder to come by, companies usually go into a cost-saving mode.” As opposed to how things worked previously, organizations are taking into account the likely future performance while deciding increment budgets, he added.
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