Bengaluru-based IT firm Happiest Minds will hire 500-600 people, a mix of freshers and laterals, in the next quarter and is rolling out 100 percent variable pay and low double digit hikes to combat attrition and cater to growing demand.
In an interaction with Moneycontrol, Joseph Anantharaju, Executive Vice Chairman & CEO – Product Engineering Services, Happiest Minds said the company hired 500-600 people in the Q1 FY22 and will hire similar numbers in the next quarter on the back of robust demand the company is witnessing.
Currently freshers account for a smaller portion, and the company intends to increase it in the coming years. The company made a net addition of 310 people, taking the total count to 3538.
The company, founded by Ashok Soota, was the latest IT firm to get listed in Indian exchanges in September 2020. Prior to founding Happiest Minds, Soota was also a co-founder of Mindtree, and was heading Wipro's IT services business.
Attrition, work from home
Retaining and deploying talent is one of the key challenges that the companies are facing, and Happiest Minds is no exception. The company’s attrition stood at 14.7 percent, up from 12.4 percent in the previous quarter.
Anatharaju said, “There is going to be attrition. We are doing a couple of things to mitigate that, some we have already implemented, and others ongoing.”
The company announced 100 percent variable pay for the year and is giving employees low double digit hikes to remove any kind of uncertainty among employees around the compensation. Additional resources deployed for some critical projects to account for the risk of attrition and also ensure that multiple resources understand different aspects of the project. These are being put in place to ensure that clients are not affected.
Though the latter is not sure, Anantharaju pointed out that numbers have increased taking into consideration higher attrition. “So if you were doing X persons earlier, now it is 1.5X persons,” he added.
Happiest Minds reported Rs 244.61 crore in revenues for the quarter ended June 2021, up 38.2 percent on year-on-year basis. Net profits declined 29 percent to Rs 36 crore in the quarter. The company has vaccinated about 55 percent of its employees, and expects to vaccinate the entire workforce by August.While most of its employees are working from home, the company will get back employees back to office in phases by January 2022, said Venkatraman N, MD & CFO, Happiest Minds Technologies. Future of work will be balanced, with some working from home and offices, taking into account the employee concerns when implementing return to work, he added.