Infosys confirms 10-13% increase in employees’ salary; details here

India’s second-largest IT services company, Infosys Ltd, has confirmed that a large portion of its employees have received a 10-13 percent hike in their salaries, with top performers getting 20-25 percent increments. The increments will be based on an employee’s grade, with senior management getting lower income hikes because their salaries are higher, according to a report in Mint. However, with falling attrition rates, Infosys is also trying to rein in wage costs by raising utilisation levels, reducing the number of on-site employees, and decreasing lateral hires. In 2021, a major skills gap prompted the IT services company to announce bumper salary hikes and counteroffers. Infosys announced two hikes, in January and in July, as well. But now that the frenzy is abating and attrition is declining (27.1 percent in Q2 from 28.4 percent in Q1), the firm, which employs 345,218 professionals, is looking to rein in high wage costs. For Infosys, wage cost prevailed to be flat at 53.2 percent for the first and second quarters of FY23. The results of the September quarter earnings showed that wage costs as a share of revenue fell for two of the six top companies, Tata Consultancy Services Ltd and HCL Technologies Ltd at 56.1 percent and 54.6 percent respectively. The focus of Infosys is on ways to retain talent, which includes faster and predictable promotions, wherein top performers are encouraged to join career development programmes and advance their promotions from 10-12 years to 7-9 years. According to Krish Shankar, executive vice president and group head of human resources at Infosys, the company will ensure that an employee becomes a project manager from a software engineer in about 9 years. He went on to add that while the promotion could be in 9 years for good performers, if one is outstanding, the period can be shortened to about 7 years. Infosys reported utilization, including trainees, of 76.6 percent in Q2 compared to 77.6 percent in the June quarter. Utilization in IT services refers to the number of people who have begun working on projects. The fall in utilization implies higher bench strength. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.