A new survey by foundit indicates that one-third of employees feel unsupported by managers during performance reviews. This gap, combined with a mismatch between offered salary increments and employee expectations, is driving high interest in job hopping across the Indian corporate sector.
Detailed Coverage
A recent nationwide survey conducted by the employment platform foundit has highlighted a growing friction point within corporate performance management systems. The data indicates that 32% of employees felt they received little to no backing from their reporting managers during the most recent appraisal cycle. For many professionals, this shift means navigating the complex evaluation process largely on their own, which can impact employee sentiment and long-term engagement.
Wage Gap Fuels Talent Mobility
The survey highlights a deepening divide between what companies are currently offering in salary hikes and what employees are seeking. Among those surveyed, 19% received an increment in the range of 6% to 10%. In contrast, when considering a move to a new company, 70% of professionals are targeting a salary increase of at least 21%. This sharp disparity between internal rewards and external market expectations creates a clear incentive for talent to seek better compensation packages elsewhere.
Retention Risks for Companies
The consequences of this appraisal disconnect are reflected in the mobility intentions of the workforce. The findings show that 52% of respondents are actively searching for new job opportunities, while an additional 34% remain open to receiving offers. This environment suggests that companies may face increased pressure on retention, even among employees who have recently completed their appraisal cycles. When employees perceive that their current organization does not support their career trajectory or meet their financial growth goals, loyalty often takes a secondary position to career advancement.
Beyond Just Compensation
While salary remains the most significant motivator for job changes, cited by 40% of respondents, it is not the only factor at play. The desire for professional growth and learning opportunities is a close second, influencing 36% of job-change considerations. This suggests that organizations facing high attrition may need to focus on holistic talent strategies, such as clearer career paths and management-employee collaboration, rather than relying solely on annual salary adjustments. For investors, high attrition rates can lead to increased costs related to hiring, training, and lost productivity, which may eventually impact operating margins for companies in labor-intensive sectors. The next important step for organizations will be whether they can bridge this communication and expectations gap to stabilize their workforce.