Author Topic: Wipro gives double-digit salary raise to 20% employees  (Read 561 times)

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Offline Rakson

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Wipro gives double-digit salary raise to 20% employees
« on: July 29, 2014, 08:02:05 pm »
BANGALORE: Wipro has rewarded nearly one in five
employees with a 16% salary increase, a move India's
third-largest software company believes will help it retain
its best-performing employees as overall attrition rates
increased during the first quarter of the year. Starting June 1, the average pay-raise for those working at
client locations onsite was 2% while it was an average 8%
for the rest. But the top 20% among its 1,47,500
employees were rewarded with twice the average
increase. "One thinking when we did the salary increases this year was to do a
'differentiated salary' increase. So we gave more to high performers,"
said Saurabh Govil, head of human resources. "We have done it in the past but this year differentiation has been
sharper." Some experts believe that Wipro's decision to reward
employees whose skills are in demand, including those with expertise
in big data and analytics, could become a more secular trend in an
industry that is battling high attrition. "I believe every company will start looking at attrition rates closely and
reward them according to the skill sets it needs," said Ian Marriott, VP
at Gartner Research. Wipro saw an increase in attrition to 17% for the three months which
ended in June as against 15.7% during the end of the January-March
period. Both Infosys and Mumbai-based Tata Consultancy Services, too,
saw an uptick in attrition for the first quarter ended June, with Infosys
reporting attrition rate of close to 20% while at TCS it was 12%. "Early trends after the salary increases show that there is clearly a dip in
attrition for the high performers," Govil told ET in an interview. "And
today, it is lower than the company average and this is clearly good
news because everyone would want high performers to stay with the
company. But then, I should say it's early days and let's wait for a little
time." For IT companies, the first quarter usually results in an increase in
quarterly annualised attrition as more employees leave to pursue
further education. But many companies are getting jumpy about losing
engineers with what it believes are hot skills and hence, trying different
measures to retain them. Infosys has decided to do away with the
variable pay component for entry-level employees as it believes it will motivate more employees to stay with the company. On the flip side, rising wages have also cut into operating margins. The
pay raises and stock options to some employees at Wipro hit operating
margins by 150 basis points during the quarter.
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