Appraisal Trends in Indian Manufacturing drop: Navigating Challenges and Opportunities

Ishwa Consulting reveals that in manufacturing sector in India has shown a significant drop in appraisals, averaging around 10.1% in 2024 from 11.5 % of last year average. The survey was conducted on 100 CEOs & CHROs of manufacturing companies. 
Appraisal Trends in Indian Manufacturing drop: Navigating Challenges and Opportunities

In a recent survey conducted by talent consultancy Ishwa Consulting, the Indian manufacturing sector faces a notable shift in appraisal patterns. The study, based on insights from 100 CEOs and CHROs of manufacturing companies, sheds light on the changing landscape of performance evaluations.

Here are the key highlights:

  1. Overall Appraisal Decline:

    • In 2024, the average appraisal rate in the manufacturing sector stands at 10.1%, down from last year’s 11.5%. This decline reflects a cautious approach amid economic uncertainties and evolving business dynamics.
  2. Senior-Level Appraisals:

    • Senior-management roles have experienced a dip, with appraisals averaging 9% this year, compared to 10% in the previous year. As organizations grapple with leadership challenges, these figures underscore the need for strategic talent management.

  3. Middle Management:

    • Middle managers, the backbone of organizational efficiency, have witnessed a moderate increase in appraisals. The average rise stands at 11%, down slightly from 13% last year. Balancing performance expectations with retention strategies remains crucial.

  4. Engineering Roles:

    • Core engineering professionals have seen their appraisal rates decrease from 11% to 9%. As technology evolves, organizations must invest in upskilling engineers to stay competitive in a rapidly changing landscape.

  5. Business Roles:

    • Business functions, including management, sales, and HR, have experienced a modest appraisal increase of 7%, compared to 8.5% last year. These roles play a pivotal role in driving organizational growth and adaptability.

  6. Regional Variations:

    • Geographic disparities impact appraisal trends. Manufacturing hubs in Western and Southern India have reported higher average increases, reaching up to 12%. In contrast, the Northern and Eastern regions lag behind, with appraisals hovering around 7%. Understanding regional nuances is essential for effective talent management.
  7. Sector Sub-divisions:

    • Within the manufacturing sector, certain segments stand out. Automotive companies, for instance, exhibit robust appraisal trends, averaging 11%. Identifying industry-specific drivers of performance can guide strategic decisions.
  8. The Digital Imperative:

    • Founder and Managing Partner of Ishwa Consulting, Arvind Pandit, emphasizes the need for advanced technical skills. As digitization accelerates, organizations must prioritize learning and development. Leveraging AI-driven insights for talent upskilling is critical for sustained growth.


  • While the dip in appraisal signals caution, it also presents an opportunity for organizations to recalibrate their talent strategies. By fostering a culture of continuous learning and leveraging technology, Indian manufacturing can navigate these challenging times and emerge stronger than ever.

Actionable Insights:

    • Skill Reskilling: Organizations should invest in reskilling programs to bridge the gap between existing skills and emerging demands.

    • Performance Metrics: Aligning performance metrics with strategic goals ensures meaningful appraisals.
    • Employee Well-being: A holistic approach that considers employee well-being alongside performance metrics fosters sustainable growth.
    • Innovation: Encouraging innovation and creativity can drive productivity and enhance overall performance. 

 Stay tuned, to for further updates on the evolving workplace paradigm.     

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