Infosys Saving Money By Stopping Salary Hike For Senior Employees; Is US Hiring The Reason?
India’s 2nd biggest IT company: Infosys has decided to put on hold a very crucial aspect for any employee: Salary hike.
And the reason, as per reports, is increased hiring in the US.
What is the connection here?
Infosys Is Not Giving Hike To Senior Employees!
In the month of April, Infosys had announced salary hike of all the employees.
However, 15% of the senior employees were denied any salary hike, and they were told that their salary would be increased in the month of May.
Now, fresh reports are coming in, which states that out of these 15% of senior employees, only 25% have received a hike, and that too in the range of 3-5%.
This means that there are hundreds of senior employees in the ranks of middle and senior management staff, who have been deprived of any salary hike this year.
This also includes several delivery managers.
Overall, there are 30,000+ employees who are categorized in the senior ranks.
Why Are These Employees Not Protesting?
Due to the scare of automation, and regular layoffs happening in the industry, these senior employees are silent, and continuing to work despite getting no pay hike.
Recently, Infosys co-founder NR Narayana Murthy stated that youth of today shouldn’t much worry about work-life balance, and they should focus on work instead.
This is indeed a strong statement, and an even stronger message to the employees, seeking an appraisal.
What Is The Reason For No Salary Hike In Infosys
As per a report by Times of India, Infosys has put on hold the salary hike for the senior employees, because of increased hiring in the US.
Recently the company announced that they have hired 9000 local employees in the US, and they will continue to hire more there.
This has put pressure on the balance sheet, and they are saving money by not giving salary hikes to the deserving employees.
Besides, their operating margin has also been forecasted in the range of 21-23% for 2019-20, which is less compared to 23-25% last year.
And now, there are other cost-cutting measures as well, such as approval process for travel.
One unnamed employee said, “Earlier, we just needed to inform the company about travel plans. Now, multiple approvals are required, and the broader message is to be very selective about travel,”
If you have any other news of how Infosys is saving money, please update us here.