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IT cos rolling out hikes, promotions to retain talent
By siliconindia
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Monday, 27 September 2010, 21:33 IST
New Delhi: While most of the sectors are on a hiring spree, IT companies on the other hand are finding it difficult to retain talent. This is especially true in the case of companies with specific domain expertise. So as a preventive measure, IT companies are planning mid- term raises, promotions and a larger share of variable pay over the course of next two months in order to secure their talent.
Big wigs like TCS, Wipro and Infosys are marching forward in applying these measures to keep their employees motivated and check attrition. Lucrative offers are on the cards for the employees of these companies.
Promotions wait across all levels for the staff of Infosys. This will automatically lead to promotion related pay hikes for them.
Wipro had earlier announced a pay rise for its workforce to be effective from October. The company had given pay hikes in the month of February on an average of nine percent.
Suresh Vaswani, Joint CEO (IT Business), Wipro said, "It's not that we will not look at it (mid-term hikes). It's not that we will only go by the cycle because markets change, customers' situations change."
After the global economic downturn, attrition rose again in the start of this year. The IT sector has especially had it difficult and witnessed up to 40 percent of attrition rates even during the boom years of 2004-05.
This has led to IT companies taking such drastic steps. Nandita Gurjar, HR Head, Infosys said, "The intent is to retain employees and keep them engaged. They should feel adequately rewarded and valued. We ensure this by keeping the compensation structure in line with market standards."
However, these employee retaining strategies may be confined only to the IT sector. Although the FMCG and consumer sectors may not give any rounds of salary hikes, festive bonuses are surely on their way.
Sandeep Chaudhary, Principal for Performance and Rewards Consulting, Hewitt Associates said, "Very few companies would evaluate giving mid-term hikes because majority are yet to see business and talent justify the same. Also, return on compensation spend is the focus, and even though growth is back, organizations will balance it with fiscal consolidation and prudence."