Bengaluru-based infotech major Wipro is rolling out salary hikes and promotions in a bid to curb soaring attrition.
Wipro will be announcing promotions quarterly from this month up to the mid-management level. Salary hikes will take place from September.
Reports said that several employees will receive a 10% pay hike and top performers could get more.
Demand hasn’t been dented for the IT sector, but analysts expect attrition to remain above 20%. For the quarter ending March, Wipro’s attrition was 23.8%. Tata Consultancy Services (TCS), which kicked off the earnings season for this quarter, saw attrition at 19.7%. Wipro will announce its results for the June quarter on July 20.
After results for fourth quarter of FY22 were announced, Wipro CEO Thierry Delaporte said the company had decided to increase the frequency of promotion cycles for 70% of employees in junior bands to a quarterly basis.
TCS CEO Rajesh Gopinathan had said that salary increments of 5-8% have been rolled out, with bigger hikes for top performers.
ICICI Securities had said that core profit margins will be impacted by “headwinds from wage revisions, high onsite wage inflation, higher retention costs as attrition is still at elevated levels, visa costs, higher travel costs and drop in utilisation due to aggressive fresher hiring in last two quarters". The note said quarter on quarter attrition will increase, and onsite attrition is expected to be higher, leading to higher retention costs and intermittent wage increments.
Reliance Securities had earlier said it expects attrition to moderate in the second half of FY23.
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