IT bellwether Infosys is reported to be planning big salary hikes, promotions and bonuses to employees to avert mass exodus as companies struggle to retain talent in digital, cloud computing, artificial intelligence and data science verticals.
Stung with attrition levels of up to 27.7 per cent Infosys is reported to be offering up to 25 per cent salary hike for “deserving employees”.
The company plans to offer an average rise of 12-13 per cent and hike up to 20-25 per cent including retention bonus for high-potential employees. For top performers it has in store better roles and opportunities to learn new skills like Artificial Intelligence (AI) and machine learning (ML).
Beyond basic rewards like salary hikes, it has asked its managers to assure employees that they will be given opportunities to work in different teams and learn in-demand skills such as AI and ML.
Infosys reported a record attrition rate of 27.7 per cent in the March quarter, which was just 10.9 per cent in the previous year. In comparison, rival TCS reported an attrition rate of 17.4 per cent during the March quarter.
Wipro came close to Infosys’ figures with an attrition rate of 23.8 per cent, while HCL Technologies reported 21.9 per cent. HCL responded by hiking the fresher level compensation package to Rs4.25 lakh from the industry standard of Rs3-3.6 lakh.
Cognizant said it will hire more freshers and may revise the salaries of employees in the backdrop of the high attrition.
Global giants like Microsoft are also being forced to take similar measures, including doubling of its budget for merit-based salary hikes.
Microsoft CEO Satya Nadella told employees that the company’s talent is in high demand and recognised and appreciated their impact and that it is “making long-term investments” on employees.