Business Today’s analysis shows the IT industry CEOs’ salaries increased by 1,500% while freshers’ salaries up only 50% in the last 10 years.
Business Today’s actual analysis is in contrast to the CEO compensation, which has increased by a staggering 1,492.27 percent over the last ten years.
However, freshers’ incomes have increased by just 46.94 percent, according to a review of the average remuneration packages of CEOs of IT companies and freshers.
As per earlier reports, Weekday has revealed that engineers working for startups get more annual salaries when compared to Indian IT companies like Wipro, TCS, and Infosys, among others.
The data shows that employees earning tens of lakhs per annum are particularly high if they are working with one of the product startups, instead of IT companies like Wipro, TCS, and Infosys.
These figures are much higher compared to what engineers are paid in IT companies like TCS, Wipro, and Infosys which pay just around 10 lahks per annum to software engineers with 4 years of experience.
However, Data from TeamLease Digital research shows how out of proportion the wages are at both levels when comparing the CEO’s compensation to that of a new hire in the same organization. This ratio is 1,973 at Infosys, 2,111 at Wipro, 1,020 at HCL Technologies, 644 at Tech Mahindra, and 619 at TCS.
As per the earlier reports of Business Today, Vineet Nayar, former CEO of HCL Tech said, “This is an unfortunate depreciation and understanding of the roles that employees play in an organisation’s growth.”
“We have not understood the fundamentals of management. The fundamentals of management are that if companies were to spend even part of their marketing budget on enthusing, encouraging, and enabling employees, you would see 10x returns”, Vineet Nayar added.
T.V. Mohandas Pai, former CFO and Board Member at Infosys, told Business Today, “There has been no increase in compensation for freshers.”
“They are being paid the same 3.5-4 lakh that the companies were paying 10-12 years ago. During this time, the salary for managers and seniors has gone up 4x, 5x, 7x”, T.V. Mohandas Pai added.
However, the companies have been laying off employees in 2022. Top tech companies have either frozen the hiring process or laid off employees.
It is expected that the IT sector hiring is expected to move in the slow lane as it is impacted by macro uncertainties and experts believe that future additions will be limited as companies have adequate bench strength and will focus on the re-skilling existing workforce.
The top four IT service providers, Infosys, Wipro, TCS, and HCL all together have on-boarded over 1,05,000 freshers in 2022. However, last year over 2.3 lakh freshers were recruited, this year the hiring is set to see a drop of over 30%.