This Indian IT Company Will Roll Out Promotions Every 90 Days! 10%+ Salary Hike For All Employees Planned
Salary Hikes And Promotions For Wipro Employee
Wipro Ltd has decided to overhaul its employee bonuses and increments with an aim to fight the rising attrition rate.
The Bengaluru-based infotech firm will be announcing promotions quarterly from this month up to the mid-management level.
It appears that salary hikes will take place later on in September.
This is the first time that Wipro has taken such steps to rein in high attrition and attract younger talent in India.
Sources said that several employees are expected to receive a 10% pay hike at the same time, top performers could get more.
Increasing Demand In IT Sector
This simply shows that demand hasn’t been dented for the IT sector, on the contrary, experts expect the attrition to remain above 20%.
When it comes to Wipro, its attrition was 23.8% for the quarter ending March.
Its rival, Tata Consultancy Services (TCS) kicked off the earnings season for this quarter, witnessing an attrition at 19.7%.
According to the schedule, Wipro will be announcing its results for the June quarter on July 20.
Further, Wipro’s CEO, Thierry Delaporte said the company had decided to increase the frequency of promotion cycles for 70% of employees in junior bands to a quarterly basis, after results for the fourth quarter of FY22 were announced.
The salary increments of 5-8% have been rolled out, with bigger hikes for top performers, said TCS CEO, Rajesh Gopinathan.
According to the ICICI Securities, the core profit margins will be impacted by “Headwinds from wage revisions, high onsite wage inflation, higher retention costs as attrition is still at elevated levels, visa costs, higher travel costs and drop in utilization due to aggressive fresher hiring in the last two quarters,”.
Further, the note mentioned that quarter on quarter attrition will increase.
The onsite attrition is expected to be higher, leading to higher retention costs and intermittent wage increments.
Reliance Securities had earlier said it expects attrition to moderate in the second half of FY23.