Wipro is rolling out another salary hike in an attempt toward employee retention, a mission the firm calls its “war for talent”.
The hike is one measure among others such as promotions and skill-based bonuses, aimed at leading the competition for diverse and skilled talent.
2nd Hike In Under 6 Months
This is the second time an increment was announced after this January when pay hikes were distributed for 80% of its workforce.
The second hike will come into effect from this June.
This hike will likely affect margins with flat sequential growth for the March quarter.
Despite a turbulent 2020 the firm had announced a single-digit salary hike back in October for a majority 80% of its employees, which would come into effect that December.
Talent Retention
Wipro’s Chief Human Resources, Saurabh Govil, has said that the hikes are a regular part of the company’s promotional cycle.
He corroborated the January announcement of salary hikes and said that junior employees would be included in the promotion cycles as was done in December.
The same would be repeated in June.
For senior employees, the firm will be rolling out skill-based bonuses and hikes as well.
In June, the hikes will be added to senior employee salaries as skill-based bonuses
Wipro has big challenges ahead as it faces an attrition rate that is rising at a concerning rate.
Tackling Attrition
As of March 31 the attrition rate for Wipro was 12.1%, a jump from 11% in Q3 FY21; with a total headcount of 1.97 lakh.
The causes can be attributed to high demand and requirement for niche talents.
The Indian tech giant is also looking to increase its hiring of talent which specialises in the pandemic-driven popular digital skills of cloud services, IoT, cyber security,,etc.
Hiring was ramped up during the 3rd and 4th quarter with the induction of 9,000 freshers and 6,000 laterals, taking the net addition of employees to 15,000.
18,000 new employees were hired in the quarter that ended in March.
The company will renew its aggressive hiring efforts across the US, Europe and India in the new quarter.
Wipro Employees’ Unexpected Salary Hike Will Impact Overall Profits?, learn more.
Comments are closed, but trackbacks and pingbacks are open.