W DELHI/BENGALURU: While India’s second largest software exporter Infosys handed out average salary hikes of about 6-12% across the board for all its offshore employees, employees at the company have mixed feelings about the latest round of pay increase, with some calling the broad range “confusing.”
Separately, Infosys also promoted about 2,147 employees during the quarter, bringing the total number of promotions to 8,900 for the year -much lower than the 23,000-odd promotions that the company handed out in the 2015-16 financial year, as the company gets more selective about promotions and focuses on rewarding only standout employees.
Infosys also handed out 90% of variable pay to all employees during the quarter following another solid quarterly performance and is also handing out stock options to top performers across the company. On-site employees were given salary hikes of about 1.5-2%
Infosys human resources head Krish Shankar said that top performers at the company would be rewarded with much higher pay hikes than the average range and about 20-25% of managerial level staff would also be rewarded with stocks.
Some employees, however, had mixed feelings about the salary hikes. “A 6-12% hike is rather confusing. Usually an average should be a number, like last year’s was 6.5%. It might mean that the lowest hike handed out would be 6%, and the highest 12%. I am not really surprised because I was anyway expecting not more than 10%, which is a decent number,” said a Chandigarh-based Infosys employee who did not want to be named.
Last year, Infosys had handed out average wage hikes of about 6.5% -the lowest range of salary hikes in nearly five years – following a disappointing year for the company when revenues grew by about 7%.
The average wage increase of 6-12% could set the tone for salary hikes across India’s $160-billion IT industry and other top companies such as TCS and Wipro could follow suit with salary increases around the same range.
An employee who has been working with Infosys for two years said the hike was pretty much the same as last year and that they will receive more clarity once work resumes on Monday. “I am not sure how much this range will translate to,” he said.
Some employees, however, pointed out that hikes were “not bad” if compared with pay increases at startups. “Of course we hope that the hikes would be higher, but if you look at even startups where hikes seem to be getting capped at 10%, this is not too bad. However, it is not in the best interests of long time employees, because they remain stuck with these low hikes each year.
Those who switch jobs frequently manage anywhere between a 30-40% one time hike which helps them earn better in the long run. What I am trying to say is that there seems to be no loyalty bonus for being an Infosys employee any longer,” said the first Infosys employee quoted in the story.