Why Wipro Is Offering Rs 1 Lakh Bonus To Freshers? Expect Less Than 4% Appraisal This Year In IT Firms
In a twist of events, Wipro is offering Rs 1 lakh bonus to freshers. Such surprise bonuses are unheard of in India, and has taken everyone by surprise.
What is the reason for this?
Meanwhile, industry stalwarts are claiming that IT employees should expect less than 4% appraisal this year, as earnings have reduced, and financials are tight.
This Is Why Wipro Is Offering Rs 1 Lakh Bonus?
It seems that Wipro is experiencing a lot of attrition, and they want to stop this.
In order to retain employees, especially those who have less than 3 years of experience, Wipro is offering Rs 1 lakh retention bonus.
Employees who have less than 3-years of experience, and have started their careers with Wipro are eligible for this retention bonus.
However, they will need to sign a contract that they cannot leave the company for a year.
Saurabh Govil, president and chief of human resources, said, “It is a retention bonus and it has a one year lock-in,”
Employees those who have more than 3 years of experience, and less than 5 years, will be given 10% appraisal.
However, there is a catch: Employees who have digital skills are getting more salary appraisal, compared to others.
At the same time, delivery managers and senior management positions are getting 3-4% increase in salary.
IT Employees Should Expect Less Than 4% Appraisal
Although Wipro is offering retention bonus to junior employees, IT employees in other companies shouldn’t expect much this year.
Infact, the overall annual appraisal can be less than 4% this year, as per leading HR Consultancies and industry observers.
As per HR consulting firm Aon, 4-6% has been the average appraisal since last few years, and till 2020, this number can even fall down.
We have already seen how Infosys has stopped annual appraisals for senior management, due to cost-cutting measures.
Anandorup Ghose, partner and head of emerging markets at Aon said, “Multiple factors are responsible for this – right from the growing need for new digital skills to the US putting pressure on the IT work that is being outsourced to other countries through imposing visa restrictions,”
As of now, the focus is on value-addition, and saving costs, rather than distributing benefits based on experience and educational qualifications.
This is the reason that higher packages and higher appraisals are being provided to employees with skills such as data scientists, full stack developers, tech architects, story tellers and skills like artificial intelligence and machine learning.
We will keep you updated, as we receive more updates.