The Company gave 0 to 4 per cent increments to its employees.
French information-technology company, Capgemini, handed out increments of 0-4 per cent to its employees. This is despite the fact that it has reported 3,153 million euros of revenues for the first quarter of 2018, up 7.2 per cent at constant exchange rates, and has maintained its forecast for the next year.
The Company also said in an official release that it expects to “accelerate its growth with revenue progression of six per cent to seven per cent at constant exchange rates, to increase profitability with an operating margin of 12.0 per cent to 12.2 per cent, and to generate an organic free cash flow in excess of one billion euros.”
As per media reports, several of its employees took to social media to express their dissatisfaction.
The Company has also announced a cut of up to 20 per cent in variable pay for the year.
In an e-mail response to Moneycontrol, a Capgemini spokesperson said, “Our employee remuneration is defined in an objective process, consistent with industry norms, to ensure we are aligned with our customer needs, business priorities, and the overall industry evolution. Annual increments are determined by individual performance and potential, and the strategic business goals of the company.”
On March 31, Capgemini Group’s total headcount was 2,03,400, up 3.9 per cent from last year, with an increase in employees in offshore centres to 1,15,900, which is 57 per cent of the total headcount.
Paul Hermelin, CEO, Capgemini Group said in a statement, “Capgemini starts the year with an excellent growth momentum. The Group continues to win market share, reflecting the alignment of its service portfolio with customer demand for both innovation and competitiveness. Demand is particularly strong in Europe and North America, driven notably by the financial services, consumer goods and manufacturing sectors.”
Digital and cloud revenues grew 20 per cent at constant exchange rates and accounted for over 40 per cent of group revenues.
Employees who took to Twitter also questioned why they were not being adequately compensated if the Group was performing well.
In its response to queries from Moneycontrol, the Capgemini spokesperson further said, “We are committed to rewarding top performers and offering them a strong career path, and have successfully completed promotions for 2018. We are also investing heavily in re-skilling our workforce. In 2017, over 60,000 employees in India underwent training. This year, we aim to provide every employee the opportunity to participate in one or more training programmes in emerging digital skills.”