A significant number of employees at Infosys received an increment of 10 to 13 per cent, while the top performers received an increment of 20 to 25 per cent.
Now that attrition is beginning to dip, the Indian information technology (IT) services company plans to reduce wage costs by increasing utilisation levels, going easy in terms of lateral hiring and reducing the number of employees on site.
The increments have been given basis grades of employees. Those at the senior levels who draw higher salaries get lower increments compared to those lower in the hierarchy.
At 28.4 per cent, the attrition rate at Infosys was higher than the average in the industry in the June quarter. By September it reduced to about 27 per cent thanks to promotions being sped up, rotation of roles and programmes to give a push the career growth of employees. The Company had also introduced a process that reduces the time taken for top-performing freshers to become managers. At least one per cent of the workforce is part of this lot of top performers.
In 2021-22 a total of about 40,000 employees were promoted whereas only about 8,000 to 10,000 were promoted in 2017. Promotions are expected to increase this year too.
Last month, Wipro had announced its plans to grant annual increments to the eligible members of its workforce with effect from September 2022. About 96 per cent of the workforce was to benefit from the salary hike.