Are your appraisals driving away top performers?
An increase in job applications has always been a trend during appraisal months. Most employees look for better opportunities on the back of the increased compensation due to appraisal.
There has been a rise in employees actively seeking out better opportunities as appraisal season wraps up, reveals new report by Spectrum Talent Management.
The top sectors that witnessed high sentiment amongst employees for job change are information technology (IT) and banking and financial services industry (BFSI).
The trend is also prevalent for senior professionals with 10%-15% reporting an intention for a job switch whereas 5%-15% are for fresher/young professionals but the scenario varies from industry to industry.
However, the segment of professionals with 2 - 5 years of experience sees the maximum traction regarding job change post-appraisal season.
When it comes to male to female ratio for a job change, it is 1:3 in favour of men, in line with the existing gender gap in employment.
Currently, the exact rate of increase in a job application is difficult to estimate before March but it should range between 15% - 20%. Similarly, the job posting is expected to show a 30%-40% increase by the same timeline.
Historically, appraisal and job switching has always gone hand in hand. One of the key factors being the remuneration change in either aspect. 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 ,hence escalating the visible trend of job changes in appraisal season. While the industry hovers at an 8% to 14% median YOY appraisal range, the salary hikes in job changes have been ranging at a median of 35% to 65%. This has been one of the primary reasons that every organization is focussing on employee retention and engagement as a key index,” said Atanu Banerjee, CEO - Staffing of STM Consulting.
Banerjee added that it’s 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.