How Do Market Rates and Inflation Impact Appraisals in Gujarat's BPO Sector?

I wanted to know how much appraisals are dependent on the market rate and how one determines the market rate of a particular position in a particular city. My other question is regarding the current appraisal rate in the BPO sector in Gujarat. If anyone may have information about it, please share. Also, I want to add if the inflation rate is also a significant factor for appraisals.

I wanted to know how much appraisals depend on the market rate and how one determines the market rate of a particular position in a specific city.

Current Appraisal Rate in the BPO Sector

My other question is regarding the current appraisal rate in the BPO sector in Gujarat, if anyone may have information about it.

Impact of Inflation on Appraisals

Also, I want to add if the inflation rate is also a significant factor for appraisals.

Factors Influencing Appraisals

Market conditions do not influence the appraisal rate. Appraisals are influenced by employee performance. The increment percentage is influenced by company revenues and its profits.

Understanding Compensation and Appraisals

1. Cost of living indexation, i.e., inflation, is a part of compensation.

2. Labour arbitrage, i.e., both external and global equity, is again a part of Compensation and Benefits.

3. Appraisal is simply measuring performance; this has nothing to do with market forces.

4. Increment rates vary across companies and locations. To understand increment rates, you will need to access Hay/Towers compensation survey reports.

Factors Influencing Appraisals

Appraisals are based on the individual's performance, group performance, and the financial performance of the company. You can decide the weightage of these performances for appraisals to be concluded. The market rate is also an important factor that helps stave off the attrition rate. Inflation is also to be factored in while deciding the minimum increment.

Thank you.