India appraisal trends 2025: Who got hikes and who got left out?

A new appraisal trends report for 2025 has revealed how India Inc. rewarded its employees in the last financial year. Based on a survey of over 5,000 employees across sectors, the study shows clear winners and losers in hikes and promotions — and why dissatisfaction remains high despite salary raises.

Hikes and promotions

According to the survey, 74% of employees received an appraisal this year. Among those left out, 11% managed to get a promotion instead. Interestingly, 4% of the promoted employees received hikes of over 20%, offering some consolation.

The most common raise fell in the 5–10% bracket — steady, but far from exciting. Mid-level professionals with 4–10 years of experience were the biggest beneficiaries, with more than 20% receiving hikes above 20%. In contrast, 32% of senior professionals with 11+ years of experience saw no increment at all.

Sector-wise analysis

The energy sector led the appraisal charts, with 26% of employees securing hikes above 20%. Retail (19%) and manufacturing (18%) also performed strongly, reflecting demand in customer-facing roles.

On the other hand, advertising and media fared the worst, with 41% reporting no hike. Education and BPO/ITES followed closely with low increments, while IT struggled — 32% got no hike and 39% were stuck in the 0–10% range.

Function-wise trends

Sales and business development professionals emerged as the top performers, with 22% receiving hikes above 20%. Marketing and communications trailed slightly at 21%. Human resources and administration mostly saw hikes in the 15–20% range, while procurement and supply chain stood out with 18% in the 10–15% band.

IT professionals faced one of the toughest years, with 42% restricted to increments below 10%. In the “others” category, which includes teachers and consultants, 30% saw no hike at all.

Employee sentiments

Despite the numbers, employee satisfaction remains mixed. While 70% said the appraisal felt fair, only 36% found the process effective. A majority (52%) demanded greater transparency, and just 32% felt their hikes met expectations.

A significant 11% earned promotions without hikes — a “trophy without prize money” situation, as one respondent described.

Job switch wave

The most striking revelation is that 85% of employees, including those who received hikes of 15–20% or even above 20%, are still planning to switch jobs. The highest proportion of potential job switchers came from the 5–10% hike bracket.

For those choosing to stay, flexibility and work-life balance (40%), salary and benefits (46%) and career growth (44%) were key factors. Work culture and leadership quality also influenced retention decisions.

Looking ahead

The survey underscores that appraisals are not just about numbers, but about recognition and transparency. Companies that fail to address these gaps risk losing talent, even when pay raises are offered.

As India moves into 2026, the call is clear: better appraisals are not only about higher hikes but also about creating workplaces where employees feel valued.

“Appraisals aren’t just about the paycheck. They’re about feeling valued,” the report observed.

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