IT Companies considering promotions for employees over the next 2 months
September 29, 2010             Category : Exam Preparations

Employees of India’s sunshine IT sector will be pampered by companies with mid-term raises, promotions and a larger share of variable pay over the next two months. Driven by the need to retain talent and keep employees motivated, companies such as TCS, Infosys and Wipro are planning to give out lucrative variable payouts, promotions or moderate salary hikes to their employees.

 

Infosys, the country’s second-largest software exporter, is planning to give promotions to its staff across levels in October. Those elevated will also be given a promotion-related pay hike. Wipro, which gave out an average of 9% hike to its employees in February, may also consider another round of raise in the next few months.

 

According to Wipro joint CEO (IT Business) Suresh Vaswani, “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.” Along with salary hikes, the company had also given 20,000 promotions and restricted stock options to employees earlier this year. Although many of the IT firms had declared salary increments and promotions during the first half of this year, attrition remains a concern. Attrition had eased during the global economic downturn, but has again gained momentum since the beginning of this year, in some cases up to 25%. India’s IT sector battled attrition rates of up to 40% during the boom years of 2004-05.

 

“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,” said Infosys head of human resources Nandita Gurjar.

 

While Infosys is offering a combination of promotions and salary increments to those getting promoted, TCS is luring employees with a larger share of variable pay to retain talent. For the quarter ended June, it has already paid employees 100% of their variable pay.

 

Wipro’s strategy is on similar lines too. The third biggest IT services exporter has assured staff that they will get a guaranteed variable pay of 100% for every quarter this year.

 

This cheer may remain restricted to the IT sector. Others like FMCG, consumer durables and auto sectors are not planning to give another round of hikes.

 

This is the right time for a fresher to enter the IT sector in India. If you wish to join any of the IT companies in India like TCS, Infosys, or Wipro, then you must take a look at sample placement papers of these companies. At Freshersworld.com, we have listed sample placement papers of all the major IT companies in India for our freshers community.

 

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