Several Information Technology and software companies operating in India have been struggling with high attrition rates over the past few quarters, with more number of employees leaving their jobs. To battle this issue, many IT companies including Wipro, Infosys, Tata Consultancy Services and HCL Technologies have announced measures including salary hikes and bonus to retain employees. Wipro salary hike for employees will be implemented from September, the company has recently said.
Here is how companies are planning to retain employees through salary hikes, bonus and other benefits:
As per a report by Mint, Wipro has said that there was no change in its salary hike plans, and the same will be rolled out from September. “There is no change to our earlier statement on salary increase, and hikes for our employees will be effective from September 1, 2022. We have also completed the first cycle of quarterly progressions effective July 1, 2022. We have no further comments on the quantum of variable pay,” Wipro was quoted as saying by the newspaper.
The company’s response came amid reports that it will not consider hikes for certain bands of employees. “Wipro will roll out several promotions for its employees, starting July. Going forward, the company has decided to offer quarterly promotions to its top performers, up to mid-management level. Wipro is expected to roll out hikes in September,” the IT major had said earlier.
Even as the attrition rate remains high, IT major Infosys is raising salaries and net hiring may also be increased which might impact the firm’s near-term margins. The company believes that it will bring down the attrition rate, which rose to 28.4 per cent during the June 2022 quarter as compared with 27.7 per cent in the previous quarter.
Announcing its Q1 results, Infosys chief financial officer Nilanjan Roy had said, “We are fueling the strong growth momentum with strategic investments in talent through hiring and competitive compensation revisions. While this will impact margins in the immediate term, it is expected to reduce attrition levels and position us well for future growth. We continue to optimize various cost levers to drive efficiency in operations.”
India’s largest IT company, Tata Consultancy Services has said that it will give a 5-8 per cent salary hike to its employees, after the firm recorded a high attrition rate of 19.7 per cent during the fist quarter of the current financial year.
Informing that TCS salary has been increased up to 8 per cent, the company’s chief HR office Milind Lakkad said, “Following our annual compensation review, employees received salary increases of 5 to 8 per cent, with top performers getting even bigger hikes. Our empowering, performance-driven work culture is helping us attract local talent across all our key markets.”