Mark My Worth: Who called you a top performer—and then shrunk your hike?
Even the best performers lose out when sectors slow down and compa-ratios kick in. Mark your worth, explains.
A decade ago, appraisal day meant a face-to-face with the boss, a sealed envelope with your name on it, and a quiet corner to process the numbers inside. You’d do the mental math, adjust your expression, and return to your desk—grinning inside or gritting your teeth.
Today, it’s all digital. Appraisal letters land in your inbox, and a discreet peek at your screen is all it takes. But one thing hasn’t changed: the sinking feeling when the numbers just don’t add up.
Top rating? Check. Extra effort? Check. So why doesn’t your pay reflect it?
In this post, Mark My Worth decodes the math (and the mystery) behind shrinking increments—even when the performance rating looks stellar.
It’s not you, it’s the economy
Some of the most manpower-intensive sectors—like consumer, automotive, real estate, and banking—are expected to dole out smaller hikes this fiscal compared to last year.
If you're working in these industries, chances are your boss has already cited global headwinds: geopolitical tensions, trade wars, and hesitant clients pulling back on big commitments. Translation? The hike you were eligible for may have quietly vanished.
Yes, your increment might still outshine that of your peers. But remember—during appraisal season, market forces always roll the dice.
Also read: Soon, your job contract will have a tariff clause
The bell curve's axe
No matter how seasoned you are in India Inc., terms like bell curve or compa-ratio often remain fuzzy. Ironically, while we're quick to question our managers about appraisals, many of us barely understand the grading framework behind them.
Also read: Fake job postings on social media leave India Inc. worried
The bell curve is a legacy performance evaluation tool. It plots employee ratings across a normal distribution—typically placing 60–70% in the average category, 10–20% at the top, and the rest on the lower end.
Though often criticised as outdated and too rigid to reflect individual nuances, the bell curve makes a quiet comeback during sluggish job markets. When appraisal budgets tighten, companies fall back on its structured simplicity to navigate tough decisions..
"...the whole performance management experiment continues with most companies – mature or otherwise – in trying to create performance metrics that provide the right levels of objectivity and measurability and managers have the right capabilities to assess performance. Till systems become stable, it is difficult to operate without a mechanism like bell curves," Anandorup Ghose, partner at consulting firm Deloitte India, told Mint in March.
Complexity of Compa-ratio
It is a measurement of pay that tells you where you stand compared to your peers in your firm or in the industry.
Also called comparison ratio- your salary is pitted against the mid-point of all those who fall in your experience and designation in your firm or sector (your salary/mid-point of pay range)*100 ).
Companies typically prefer to have people in the 80%-120% compa-ratio percentages. If you score a compa-ratio percentage of 100% it means you are getting paid as per your market value. Therefore, even if you are a top performer but are overpriced (above the 120% compa-ratio), chances are that you will get a smaller raise versus many to maintain a parity.
How your vertical fared
Earlier, we talked about how global turmoil can shrink your hike. But even if macro conditions ease, your increment may still fall short—especially if your company or business vertical is under pressure.
This appraisal cycle, generosity will be in short supply. Companies are tightening costs, and within organisations, some verticals will inevitably outperform others—drawing a bigger share of the limited raise pool.
While senior and mid-level professionals may feel this pinch more, newcomers to India Inc. would do well to understand how their vertical fits into the broader structure. Is your team aligned to a global hub or a regional unit? That often decides how pay decisions roll out.
Remember, there’s rarely a clean one-to-one correlation between your effort and your increment. Appraisals are a complex equation of business performance, cost control, internal politics, and timing. So if your hike disappointed, it’s likely not just about you—but about everything around you.
Blame the geopolitics if it helps. But know that only so much is in your hands.
Read the other stories in our special series here:
Mark My Worth: You are now reporting to your colleague or your junior!
Mark My Worth: With a productivity uptick, it’s time to ask for that promotion
Mark My Worth: Rulebook on how to choose one high performer over another and retain both
Mark My Worth: How to deal with the dreaded Meets Expectations rating
Mark My Worth: Appraisal and the art of Atmanirbhar Branding
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