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After a shocking backlash from its employees in media and attrition , Nandita Gurjar has acknowledged that one of the problem is with iRace which has in smaller percentage reduced roles and salaries of mid level employees.
In the interview she has admitted a high level committee has submitted some modifications in the iRace and they are currenly under review with management. So infy employees might get a pleasant surprise after the Q4 numbers.
Infosys has seen extremely high attrition over the last 3 months and most employees attribute it to the new HR initiative (I think Finance had more say here).There were reports that Infosys lost 4000 employees in the month of February alone accounting for 3% of its total strength. It appears Infosys has frozen all the exit interviews of employees resigning till the end of the March 2010 (H2), this appears as a move to show more acceptable attrition rate to the media and markets ahead of the annual results. Nandita Gurjar has been taking a lot of flak from infy employees in the media comments section.
During recession Infosys like TCS,Wipro and many others increased the working hours from 8 hours to 9 hours and froze the hikes and promotion for two years. Now after iRace many employees have been demoted as they dont fit the expected criteria and their salary has gone down as well. Typically when a company starts reducing salaries even while showing profit growth it makes you wonder when will the normalcy return for these companies. Infosys while projecting a profit growth story to markets, it is doing exactly the opposite towards its employees.
By discouraging long serving employees, the likes of Infosys and TCS are encouraging a vicious cycle in the IT industry in terms of attrition and forced hikes by laterals, in spite of the fact that the cost for the companies will be much lower to retain employees rather hire at a higher price.
The post title has been modified after many have raised issues that band D % is not increased this time around.
Here is the new breakup as suggested by commenters :
A 10%, B 32%, C 43% , D&E – 15%
Old post —
Tata Consultancy Services will be announcing its annual hikes next month, but not everyone will rejoice the news, TCS generally tries to keep its overall employee costs same and predictable irrespective of the performance of the company. TCS has been under tremendous pressure due to increasing attrition rate over the past 3-4 months, unlike anytime TCS senior management have spoken about proposed hikes from last quarter just to hold on to the employees planning to quit.
Typically TCS fixes the share of each bands every year typically following is the Division (very sure abt B and C)
A – 5% B – 30% C – 40% D -20% E -5%
A – 10% B – 30% C – 40% D -19% E -1%
The above are normal scenarios but these values are kept as confidential and never shown outside, but this year the management seems to focused on making sure the band D is increased, several project GL’s have been conducting sessions explaining how Band D is not that bad.
And the hike is expected to be in range of 7-15% (highest in higher levels of management). Most employees will see a hike of around 10% max.