BENGALURU: Infosys’ long-awaited hikes are being rolled out in a staggered manner. Some of the employees are learnt to be getting their hikes in January after it has rolled out increments to many of its employees in December.
Some sources said that some of the business units are finalising their budgets and hence the delay. An email sent to Infosys didn’t elicit a response till the time of going to the press.
Infosys has announced that the hikes are effective November 1.The Bengaluru-based IT company has deferred hikes for nearly two quarters. It normally announces the hike in June/July, and it’s effective April.
Infosys HR head Shaji Mathew, in a recent town hall, spoke about how tenured employees and high performers would be the focus of the compensation review cycle. Companies have increasingly become selective as to who they give hikes to. Recently, TOI reported that Infosys has excluded juniors and mid-level employees who were onboarded after October 2021, and seniors who joined after October 2020.
Over the past year, weakening global macroeconomic conditions, and geo-political events have led to a slump in IT demand. IT companies have been scaling back their hiring targets. In several recent quarters, the overall employee strength for some companies has dropped, given that fresh hiring did not compensate for those who left the company.
As attrition levels grew, many over-hired in the expectation that attrition rates could further rise. But in a subdued business environment, employee attrition rates have fallen by a third to a half of what it was a year ago, also reducing the bargaining power of IT professionals. Infosys’s attrition rate nearly halved to 14.6%, from 27.1%, during the September quarter.
We also published the following articles recently
Some sources said that some of the business units are finalising their budgets and hence the delay. An email sent to Infosys didn’t elicit a response till the time of going to the press.
Infosys has announced that the hikes are effective November 1.The Bengaluru-based IT company has deferred hikes for nearly two quarters. It normally announces the hike in June/July, and it’s effective April.
Infosys HR head Shaji Mathew, in a recent town hall, spoke about how tenured employees and high performers would be the focus of the compensation review cycle. Companies have increasingly become selective as to who they give hikes to. Recently, TOI reported that Infosys has excluded juniors and mid-level employees who were onboarded after October 2021, and seniors who joined after October 2020.
Over the past year, weakening global macroeconomic conditions, and geo-political events have led to a slump in IT demand. IT companies have been scaling back their hiring targets. In several recent quarters, the overall employee strength for some companies has dropped, given that fresh hiring did not compensate for those who left the company.
As attrition levels grew, many over-hired in the expectation that attrition rates could further rise. But in a subdued business environment, employee attrition rates have fallen by a third to a half of what it was a year ago, also reducing the bargaining power of IT professionals. Infosys’s attrition rate nearly halved to 14.6%, from 27.1%, during the September quarter.
We also published the following articles recently
Infosys loses multi-billion deal: Read the company’s statement to BSE
Infosys announces termination of a 1.5 billion contract with an undisclosed global company, according to a corporate filing. The contract was previously announced in September 2023 and aimed to provide enhanced digital experiences and business operations services leveraging Infosys platforms and AI solutions. The termination comes amidst global uncertainties and macro headwinds affecting the IT and tech industry, including the UK’s contracting economy. Experts warn of a potential recession in Britain.
Infosys announces termination of a 1.5 billion contract with an undisclosed global company, according to a corporate filing. The contract was previously announced in September 2023 and aimed to provide enhanced digital experiences and business operations services leveraging Infosys platforms and AI solutions. The termination comes amidst global uncertainties and macro headwinds affecting the IT and tech industry, including the UK’s contracting economy. Experts warn of a potential recession in Britain.
In IT, salary hikes not for all, tenure matters
Infosys, Wipro, and HCL have deferred their salary increments and are becoming more selective in giving annual hikes. They are focusing on performance and tenure when considering employee compensation. Infosys excluded certain employees from the recent hike announcement, while HCL provided hikes only for junior employees. Wipro did not consider top performers with high salaries for the current appraisal cycle. IT services companies are experiencing a decline in margins and are adapting to changes in the business and technology ecosystems. Some attribute the changes to the inability to implement competency-based pricing and increased competition from bots and AI.
Infosys, Wipro, and HCL have deferred their salary increments and are becoming more selective in giving annual hikes. They are focusing on performance and tenure when considering employee compensation. Infosys excluded certain employees from the recent hike announcement, while HCL provided hikes only for junior employees. Wipro did not consider top performers with high salaries for the current appraisal cycle. IT services companies are experiencing a decline in margins and are adapting to changes in the business and technology ecosystems. Some attribute the changes to the inability to implement competency-based pricing and increased competition from bots and AI.