As demands for digital skills rising, employee attrition has come out as a challenge for IT Industry. HCL Technologies is working on a plan to give Mercedes-Benz to Top performers.
HCL has reported an Attrition Rate at 11.8% in Q1 FY’22 (down from 14.6% last year and from the previous quarter 9.9%), reflective of the effectiveness of increased employee engagement initiatives and large-scale upskilling programs.
IT Companies are offereing cool perks and cash-based incentives to retain their employees as the replacement cost may come at 15-20% higher.
In an interview with media, HCL Technologies Chief Human Resources Officer, Apparao V V said, “The proposal is with the board for approval. We had given out 50 Mercedes Benz cars to top performers in 2013, but later discontinued the practice.”
“HCL has a good retention package with a three-year cash incentive scheme which is 50-100% of CTC every year. At least 10% of the critical talent in the leadership teams have benefitted from it” he said.
The company added 7,522 people during the first quarter with a total headcount of 176,499.
The Indian information technology (IT) sector is staring at an alarming attrition rate in FY22 amid a revival in demand with companies battling to hire the best talent in digital skills.
Recently, Chief Operating Officer of Infosys, Pravin Rao, said, “As the demand for digital talent explodes, rising attrition in the industry poses a near-term challenge. We plan to meet this demand by expanding our hiring program of college graduates for FY 22 to 35,000 globally,”
HCL Technologies has also announced that Shiv Nadar has stepped down as Managing Director and Board Member of HCL Tech, effective from July 19. C. Vijayakumar has taken charge and Managing Director & CEO of the company for five years from July 20, 2021.
Shiv Nadar, who has completed 76 years of age, will now take on the role of Chairman Emeritus and Strategic Advisor to the company’s board, according to a regulatory filing on Monday.