IT companies including TCS, Wipro are offering up to 120% salary hike, here's WHY
Over the previous quarters, a lot of IT companies struggled with attrition rates. Many IT firms have announced initiatives to address the issue. To overcome this issue, Wipro announced employees will receive a pay raise in September's first week.
- Over the previous quarters, a lot of IT companies struggled with attrition rates.
- Many IT firms have announced initiatives to address the issue.
- Wipro announced employees will receive a pay raise.
New Delhi: Over the previous several quarters, a lot of Information Technology and software companies operating in India have struggled with significant attrition rates, with more people quitting their employment. Many IT firms, including Wipro, Infosys, Tata Consultancy Services, and HCL Technologies, have announced initiatives to address this issue, including compensation increases and bonus payments to retain personnel. Wipro has announced that starting in September, employees will receive a pay raise.
The following is how businesses intend to keep workers by increasing salaries, giving bonuses, and providing other benefits:
According to a report by Mint, Wipro has stated that its intentions for compensation increases have not changed and would be implemented starting in September. "Our earlier comment about salary increases remains unchanged, and raises for our staff will take effect on September 1, 2022. As of July 1, 2022, we have also finished the first cycle of quarterly progressions. We have no other remarks to make regarding the amount of variable pay, according to Wipro, which was quoted in the newspaper. (Aso Read: 50% of companies planning job cuts amid economic downturn: Report)
The company's statement came amid accusations that it would not take specific staff groups into account for raises. Starting in July, Wipro will provide multiple promotions to its staff. The business has made the decision to give its best achievers, up to mid-management level, quarterly promotions going forward. In September, Wipro is anticipated to introduce price increases, according to IT giant. (Also Read: Markets settle marginally higher on fag-end buying)
Even while the attrition rate is still high, Infosys, a big IT company, is raising compensation and may increase net hiring, which could affect the company's near-term profitability. The attrition rate increased to 28.4% during the quarter ending in June 2022 from 27.7 percent the quarter before, and the firm anticipates lowering it.
Nilanjan Roy, the chief financial officer of Infosys, has stated that the company was "fueling the robust growth momentum" by strategically investing in talent through recruiting and competitive wage adjustments. While this may have an immediate negative effect on profitability, it is anticipated to lower attrition rates and put us in a good position for future growth. We keep improving different cost levers to boost operational efficiency.
Tata Consultancy Services, the largest IT business in India, has announced that it will increase staff salaries by 5-8% as a result of the company's high attrition rate of 19.7% during the first quarter of the current fiscal year. 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.