As most Indian companies have finished their appraisals and employees are expected to receive their revised salaries effective March or April, there is likely to be a surge in people seeking new jobs. According to Spectrum Talent Management, post appraisal months, there is a 25% increase in employees seeking better job opportunities.
Information technology and banking, financial services and insurance, BFSI are among the top sectors that witnessed high sentiment amongst employees for job change, according to Spectrum. The trend is also prevalent among senior professionals with 10-15% of them reporting an intent for job switch. In comparison, 5-15% of the freshers, young professionals have reported an intent for job change though the scenario varies across each industry.
Interestingly, the segment of professionals with 2-5 years of experience have seen the maximum traction regarding job change post-appraisal season.
“Historically, appraisals and job switch have always gone hand in hand, one of the key factors being the remuneration change. The fact that the industry is recovering from the post Covid impact and passing through an effective western slowdown and international tensions, has shown tangible effect on the tech industry resulting in evident layoffs. Sectors like BFSI and retail have witnessed the alternate side as the demand has surged across levels, escalating the visible trend of job changes in appraisal season,” said Atanu Banerjee, CEO-Staffing of Spectrum Talent Management.
“It is high time that the top management pays due attention to their top performers during appraisal conversations as majority of the employees do not put down their papers right after the appraisal rather there is always a buffer time of one to six weeks to make up their minds,” added Banerjee.
Sectors like IT services and new-age sectors such as electric vehicles mostly see high employee turnover rates after appraisals because they usually work in a highly competitive environment and have multiple job opportunities, according to CIEL HR Services. “However, this year we might see a different result as IT, startups and the tech companies are operating in a slow growth environment and hence, have fewer job opportunities. Moreover, employees are jittery to think about job switches amidst the ongoing layoffs around the globe,” said Aditya Narayan Mishra, Managing Director and CEO, CIEL HR Services.
HR experts believe companies can do their bit to retain employees post appraisals. “This is a crucial time for employers to invest in their employees and create a safety net to motivate and retain them. Employers can retain their top talent and build a strong and committed workforce by providing fair and transparent appraisals, offering competitive compensation packages, creating growth opportunities, fostering a positive work culture, offering work-life balance, and showing appreciation and recognition,” added Mishra.