A lot of IT companies in India have struggled with significant attrition rates over the previous several quarters. To address this issue companies have decided to revise their salaries.
Many IT companies, Wipro, Infosys, and TCS have announced initiatives, including compensation increases and bonus payments to retain personnel.
The following are the details of IT companies intend to keep workers by increasing salaries, giving bonuses, and providing other benefits:
India’s largest IT services provider, Tata Consultancy Services (TCS) has announced that it will increase staff salaries by 5-8%.
Milind Lakkad, the company’s chief human resources officer, announced that TCS salaries have increased by up to 8%.
He added, “Following our annual compensation review, employees got wage increases of 5 to 8%, with top performers receiving even higher increments.”
“In all of our core markets, our performance-driven, empowering workplace culture is assisting us in luring local talent”, he added.
TCS added 14,136 employees in the April to June quarter with a total workforce of 6,06,331 employees globally and women account for 35.5 percent of the TCS workforce.
The IT company added 14,136 employees, and its attrition rate climbed up from 17.4 percent in the last quarter of the previous fiscal to 19.7 percent in the reporting quarter.
India’s second-largest IT major, Infosys has also announced that is giving competitive compensation revisions to its employees. The company is also planning on increasing its hiring target ahead.
Nilanjan Roy, Chief Financial Officer said, “We are fueling the strong growth momentum with strategic investments in talent through hiring and competitive compensation revisions. While this will impact margins in the immediate term, it is expected to reduce attrition levels and position us well for future growth.”
The main reason behind this is the high attrition rate. The company’s attrition rate has increased to 28.4% in Q1FY23 expanding by 70 basis points from 27.7% in Q4FY22. In Q1FY22, the attrition was at 13.9%.
Infosys has announced that it has reached a total headcount of 3,35,186 employees in Q1FY23, with a net addition of 21,171 people in the first quarter ending on June 30.
India’s IT major, Wipro has said that there was no change in its salary hike plans, and the same will be rolled out from September as per the reports.
The company is holding back the variable payouts of Q1, June 30 ending quarter for mid to senior-level employees due to the pressure on operating margins. However, the freshers and the employees till the position of the team leaders will receive 70% of the target variable pay depending on their billability.
According to reports, Wipro said, “There is no change to our earlier statement on salary increase, and hikes for our employees will be effective from September 1, 2022.”
“We have also completed the first cycle of quarterly progressions effective July 1, 2022. We have no further comments on the quantum of variable pay”, the company added.
The company’s response came amid reports that it will not consider hikes for certain bands of employees.
“Wipro rolls out several promotions for its employees, starting July. Going forward, the company has decided to offer quarterly promotions to its top performers, up to the mid-management level. Wipro is expected to roll out hikes in September,” the IT major had said earlier.
Wipro added 15,000 employees in the first quarter of this fiscal with a total headcount of 258,574 employees on June 30, 2022. Which was 243,128 in the previous quarter, on March 31, 2022.
The company has reported an attrition rate of 23.3 percent, slightly lower than the previous quarter’s 23.8 percent, but significantly higher than 15.5 percent during the corresponding quarter last year.