Stung With 27.7% Attrition, Infosys Offering Upto 23% Salary Hike For Deserving Employees!
Infosys will start to offer bumper raises, promotions and bonuses to its employees to retain them.
The company has seen record turnover levels with the fight for talent intensifying for those in digital, cloud computing, artificial intelligence and data science.
Infosys plans to offer an average rise of 12-13 per cent and hike up to 20-25 per cent including retention bonus for high-potential employees.
For the top performers it has in store better roles and opportunities to learn new skills like Artificial Intelligence (AI) and machine learning (ML).
There is more to come.
Beyond basic rewards like salary hikes, it has asked its managers to assure employees that they will be given opportunities to work in different teams and learn in-demand skills such as AI and ML.
Infosys has good reason to step up its efforts at keeping its talent.
It posted a record attrition rate of 27.7% in the March quarter which was just 10.9% in the year-earlier.
Its turnover rate stood at 25.5% in the three months ended 31 December.
IT Industry Facing Double Digit Attrition
Rival TCS in comparison reported an attrition rate of 17.4% during the March quarter.
Wipro came close to Infosys’ figures with an attrition rate of 23.8%, while HCL Technologies reported 21.9%.
HCL responded by hiking the fresher level compensation package to Rs 4.25 lakh from the industry standard of Rs 3-3.6 lakh.
Industry peer Cognizant said that it will hire more freshers and may revise the salaries of employees in the backdrop of the high attrition.
Not Just India
Other global giants are also being forced to take similar measures.
Microsoft CEO Satya Nadella told employees that it will double its global budget for merit-based salary hikes.
He noted that the company’s talent is in high demand and recognised and appreciated their impact.
Is The Hike Really Meaningful?
Hence it is “making long-term investments” on employees.
Rituparna Chakraborty, co-founder and executive vice president, TeamLease Services said that when companies talk about an average salary increase, they refer to the total hike in wage cost
So, the actual salary increase could vary from high to low.