It is time for employees at Infosys to cheer. The IT major has decided to grant an average salary hike of 12 to 13 per cent to its employees. The high-potential employees may even get 22 to 23 per cent increment, including retention bonus.
This move is aimed at reducing turnover and controlling attrition, which stood at 27.7 per cent in Q4. This attractive hike is also likely to draw more experienced professionals to the Company along with freshers.
Mint reported that Infosys had hired 85,000 freshers in the last financial year and intends to hire about 50,000 college graduates in FY23.
The top performers of Infosys can look forward to better roles along with better opportunities to upskill and receive training on emerging technologies, including artificial intelligence (AI) and machine learning (ML).
Of late, Infosys has been experiencing very high attrition. In March 2021, its attrition rate was 10.9 per cent, whereas the figure went up to 25.5 per cent in the quarter ended 31 December.
Infosys is not the only firm in the IT space to announce salary hikes. Tata Consultancy Services (TCS) also announced that the salary for its employees will be hiked by six to eight per cent in the financial year 2023. Microsoft too recently revealed its intention to double the budget for employee compensation, globally. This is Microsoft’s way of maintaining competitive remuneration amidst a tight labour market.