New Infosys CEO Sikka grants 6-7% pay hikes to 5000 employees
08 Aug 2014
Infosys has given 'out-of-turn' salary hikes of 6-7 per cent to 5,000 employees in an apparent effort to improve workforce morale and curb attrition.
The hikes come soon after former SAP AG executive Vishal Sikka took charge as the first non-founding chief executive of the company on 1 August.
The move is reminiscent of a mid-year salary hike in 2013, which coincided with co-founder Narayana Murthy's return from retirement as executive chairman.
India's second-largest IT firm had reported an annualised attrition rate of 19.5 per cent for the quarter ended 30 June; meaning that about one in five employees left Infosys in the one-year period.
Infosys announced 6-7 per cent salary hikes for offshore employees effective 1 April, lower than TCS' wage hike of 10 per cent for India-based employees. On Wednesday, US-based Cognizant matched TCS and announced a 10-per cent increment for its offshore employees.
In July, Infosys chief operating officer U B Pravin Rao had said, "Employee attrition rates are worrisome and we are implementing various initiatives to retain good talent."