The No. 2 software exporter on Friday said it will not be offering salary hikes — as is its wont every April — this time.
“Our focus right now is on growth and the whole leadership team is working towards it. So, we have decided not to roll out hikes this April, but we might re-look into it later in the year if things improve,” said Nandita Gurjar, senior vice president, group head, HR, Infosys.
The company, however, will hand out 16,000 promotions and recruit 35,000 this year. This is not the first time Infosys has pulled raises. It had done so in 2008, in the aftermath of the Lehman Brothers implosion and the global financial crisis. Experts said other companies in the sector might follow suit.
“Infosys is one of the bigger firms in India. Even in the past, it has happened that other companiesfollow whatever is being said by Infosys. I hope things are a bit different this time around,” said Amitabh Das, CEO, vati Consulting, a recruitment firm.
According to Kris Lakshmikanth, managing director at Head Hunters, things might be slightly better for employees in mid-cap companies.
“The smaller and mid-tier companies do not usually keep a huge bench. So, there is always a fear of attrition. Infy, TCS, Wipro have huge benches, so even if employees decide to quit they have enough people to fill in those positions. That’s not true in the case of smaller companies,” he said.
There are many who believe that even if other IT companies decide to roll out hikes, it might not be more than 8-9%.
“I think many companies, including firms from other sectors, will hide behind Infy and decide to give little or no hike. This has happened in the past. I see no reason why other companies should shy away from giving hikes,” said an HR expert asking for anonymity.
Earlier in the year, various recruitment firms had predicted an average salary hike of 10-12% for all industries with the IT sector at 9-10%.
Source : DNA