The third-largest IT services provider in India, HCLTech, started giving junior staff members partial pay increases during the October–December quarter.
According to sources, top performers received 3-4% raises, while junior employees with up to 10 years of experience at the E0, E1, and E2 levels received 1-2% increments.
HCLTech Announces Salary Hikes for Junior Employees
This is less than HCLTech’s prior pledge, made in the company’s Q2 earnings commentary, of 7% average yearly pay increases and 12–15% increases for top performers.
For at least the last two fiscal years, some E3 employees have reported no pay increases, and those at the E3 level and higher (mid to senior level) have not yet received raises.
According to reports, employees at the E4 level have not seen pay increases in the previous three years.
HCLTech postponed pay increases for senior to management-level staff in FY24 in order to control costs in the face of uncertain discretionary spending and a difficult demand environment.
“E0-E2 got their letters in December last week… Employees in the E3 band and above are still awaiting appraisals,” said an HCLTech employee. Appraisals for workers in the E3 band and higher are still pending.
A representative for HCLTech responded to Moneycontrol’s inquiries by denying the alleged disparities and claiming the business is moving forward in accordance with the Q2 plan.
Average Increase Will Be Around 7%
Chief People Officer Ramachandran Sundararajan stated at the Q2 earnings conference, “For all our colleagues in India, the average increase will be in the range of about 7%… Top performers will continue to see double-digit increases in the range of 12-15%.”
According to Sundararajan, pay increases are dependent on eligibility and performance, especially for lateral hires who have been with the company for a year.
In order to control expenses and preserve profitability, businesses like LTIMindtree and L&T Tech Services have postponed raises, while other IT companies like Infosys have also postponed wage increases until the fourth quarter of FY25.
In terms of year-over-year (YoY) revenue growth in constant currency for the September quarter, HCLTech performed better than its Tier-1 IT competitors, such as TCS, Infosys, and Wipro. Strong deal wins across verticals, geographies, and offerings allowed the company to surpass market estimates for net profit and EBIT margin growth.
HCLTech’s EBIT margins are anticipated to increase by about 50 basis points sequentially in the third quarter, according to brokerage firm Motilal Oswal Financial Services, despite
Despite the effects of furloughs and wage hikes, brokerage firm Motilal Oswal Financial Services stated that HCLTech’s EBIT margins are anticipated to increase by about 50 basis points sequentially in the third quarter.
On January 17, HCLTech is expected to make its earnings announcement for the December quarter.
