As part of its ongoing commitment to employee development, HCLTech has announced a seven per cent salary hike effective October 2024, with top performers receiving increments of up to 15 per cent. Ramachandran Sundararajan, chief people officer, HCLTech, highlighted that this move acknowledges employee contributions amid strong financial results. Despite the salary increase, the company expects minimal impact on its operating margins for the December quarter, with efficiency measures in place to mitigate potential effects.
The company’s compensation strategy aligns with its annual review cycle and is designed to retain talent while maintaining profitability. The wage increase comes at a time when other Indian IT firms have delayed raises due to a challenging demand environment. However, HCLTech’s solid financial performance, reflected in both revenue and margin growth, has allowed the company to implement the pay hikes without compromising its financial stability.
The company continues to adjust its workforce. As per its second quarter result, the company reported a reduction of 780 employees during Q2 of fiscal year FY25, from July to September.
This follows a more significant headcount decrease of 8,080 employees in the first quarter. Despite the layoffs, HCLTech added 2,932 freshers in Q2, a significant increase from the 1,078 hired in the first quarter.
As of September, the company’s total employee count stood at 2,18,621, down from 2,19,401 at the end of June. The company’s attrition rate also remained relatively stable at 12.8 per cent, a noticeable improvement from 14.2 per cent in Q2 of last year.
By maintaining a delicate balance between workforce investment, operational efficiency, and profitability, HCLTech reinforces its competitive position in the IT services sector.
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Good
Still there is no release of appraisal letters and it’s too much delayed