Infosys gives wage hike of 6-12 per cent; top performers to get equity
Bengaluru: Infosys on April 15 said it has given a wage hikes of 6-12 per cent to its employees in India and of about 2 per cent to onsite workers. The city-based firm, which posted better-than-expected results in the January-March 2016 quarter, said it is also looking at offering equity to incentivise top performers.
Infosys Executive Vice President and Group Head (Human Resource Development) Krishnamurthy Shankar said, "We are starting with the process for our engineers and the leads, and they will be based on performance, majority of them will be in the range of six and 12 per cent." For onsite employees, it is around 1.5 to 2 per cent.
The hikes are effective from April 1 for employees below managerial level, and from July 1 for managers and above. In the fourth quarter, Infosys gave out 2,147 promotions and 8,900 in total in FY2016 for employees below managerial level. The company is also looking at introducing equity, which will be launched during the quarter and will be announced in due course.
"Objective is to ensure that....to retain and attract people, we are going to cover select percentage of high potential, high performers about 20-25 per cent of managerial level, that would be our intention," Shankar said. For the March quarter, Infosys' total headcount stood at 1,94,044 as against 1,76,187 a year ago.
The company added (net) 661 people in the January-March 2016 quarter. Its quarterly annualised attrition rate declined to 17.3 per cent in the said quarter from 18.1 per cent in the October-December 2015 quarter and 18.3 per cent a year-ago.
Infosys COO UB Pravin Rao said the company is still working out details of the Restricted Stock Unit (RSU) programme for the employees and eligibility criteria. It will be predominately be mid-level and senior-level managers but apart from that, it will also be for high performers, he added.
"I think we have got approval for one per cent, that is around 24 million shares, that will be issued over the time. We are looking at 4-5 years and will be using this over the next 4-5 years. This will be rolled out to employees this quarter," he said. Asked about future hiring, Rao said Infosys has made offers to 20,000 people from across colleges.
