Days of huge wage increases are over: Infosys' T V Mohandas Pai
Friday, 04 March 2011, 11:47 IST   |    4 Comments
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Days of huge wage increases are over: Infosys' T V Mohandas Pai
Bangalore: The good old days of huge wage increase could well be over, Infosys Board Member T V Mohandas Pai said here on Thursday. "The days of huge increase are over because market has become much more competitive and unemployment is very huge in US and Europe because of financial crisis and is not going away," he said on the sidelines of a function here today. "Regulatory barriers are coming there in very big numbers," he said, adding the scenario has changed. "The key thing is to improve productivity, the key is to make sure people can produce more that can lead to higher wages rather than mechanically giving higher wages," he said. However, he said wage increase would have to be reasonable and a more high single digit growth. He said he also foresaw stability in freshers salary in next three to four years due to increase in supply. The number of engineers had gone up from 550,000 four years back to 1.1 million last year, he said. Pai said: "Wage increase is not the only way to retain people because if we go on giving wage increase, while it will make all of us happy over getting more money, it will only make the industry uncompetitive." He said, "I think the challenge of IT industry is very different from any other industry, as it has a very young force in the age group of 27, highly skilled when they come, they are people with global aspirations they can work in any part of the world." "Engaging them, empowering them and working with them is a very big challenge. I think the challenge can only be handled if we have proper HR policies and I think HR community needs to look at better employee engagement, career development and investing in people on learning better rather than depending only on compensation and fun and games," he said.
Source: PTI
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