Promotions to take a hit as India Inc. turns tightfisted

Companies to elevate fewer people, offer slimmer hikes this year amid global uncertainty

- Devina Sengupta

Employees may be in for an even bigger disappointment this year as the economy and the market grapple with uncertainty. Companies are not only offering slimmer hikes but will also elevate fewer people. Consulting firm Deloitte estimates a 25% drop in the number of promotions in 2025 versus last year.

"The current financial year has seen slower growth for companies across sectors and promotions have been impacted to manage fixed cost increases," said Anandorup Ghose, partner at consulting firm Deloitte India and who tracks and advises corporates on compensation and rewards. "Slower market conditions also lead to organizations not needing to promote people for bigger roles, etc."

A Mint analysis of 3,577 BSE-listed companies showed the revenue growth in Q3FY25 dipping to 4.4% from 7.3% and 9.1% in previous two quarters, respectively. Net profits surged 12.4%, up from 8.7% in Q2, but on account of lower input costs and disciplined cost management. Employee expenses remain steady.