Appraisals came in for most Indian professionals this year, but job satisfaction didn’t rank high.
According to the foundit Appraisal Trends Report 2025, while 74% of employees received an increment in the FY24–25 cycle, a staggering 86% are still planning to change jobs in the coming months.
This is a sign for organisations that salary hikes alone are no longer enough to retain candidates.
Hikes were modest across the board
Most appraisals were in the 5–10% range, with only a small share crossing the 20% mark. For most professionals, that wasn’t enough to justify staying.
In fact, even among those who received 20%+ hikes, 86% still said they were looking to switch.
This points to a growing shift in what employees value, and what they’re not willing to compromise on anymore.
The sectors that took a hit (and the ones that didn’t)
Some sectors struggled to reward their employees this year.
Among sectors that offered ‘No hikes’, Advertising & Media topped the list at 41%, followed by Education (33%), IT (32%), and BPO/ITES (31%).
On the other hand, Energy emerged as a clear winner, with 26% of respondents in the sector reporting hikes above 20%. BFSI also fared better, offering a balanced spread of mid- and high-range increments.
Pay gaps by role: Sales & marketing outperform the rest
When it comes to functions, Sales and Marketing roles were clear outperformers, with over 20% of professionals receiving top-tier hikes. IT and HR roles, however, saw a more conservative cycle, with nearly a quarter getting no hike at all.
Here’s what the numbers reveal:
- Sales & Business Development led with 22% of professionals receiving hikes above 20% — the highest across all functions.
- Marketing & Communications followed closely with 21% receiving 20%+ hikes, despite 23% also seeing no hike.
- IT, HR, and Finance functions reported similar no-hike figures — around 23–24%, indicating cautious spending on support and tech roles.
- HR & Admin saw the lowest share of high hikes, with just 14% receiving 20%+.
Senior professionals saw the least hikes
Experience didn’t help much either.
1 in 3 senior professionals (11+ years of experience) didn’t get a hike, compared to just 17% of mid-senior professionals (7–10 years). The message is clear: companies are leaning heavily on mid-level talent for execution, while strategic and leadership roles face tighter budgets.
Why hikes alone aren’t enough
Intent to leave remains alarmingly high — even for employees who received top-tier hikes.
The data says it all:
- 82% of employees with 0–5% hikes plan to leave.
- But even among those with 10–15% hikes, 87% still plan to switch.
- 86% of those with hikes above 20% say they’re actively looking, proving that even strong increments aren’t enough to ensure loyalty.
Takeaway: Raises are appreciated, but they’re not retention tools anymore. The “sweet spot” of satisfaction is missing entirely. Intent to quit stays above 80% across all salary bands.
Employees are seeking clarity, flexibility, and growth beyond just compensation. Tansparency, career growth, flexibility, and work-life balance, not just pay.
Here’s what most employees had to say
- 32% felt their hike met expectations
- 36% found the appraisal process effective
- 52% want greater transparency in how hikes and promotions are decided
Interestingly, the professionals who chose to stay cited clarity, growth opportunities, and flexibility as the top reasons, not compensation.
The bottom line
Employers can no longer rely on salary increments alone to keep their teams intact. In 2025, retention is about respect, transparency, and growth pathways. Companies that fail to deliver on these fronts risk losing even their highest performers, no matter how generous the raise.
