Infosys: Single digit salary hike for majority of employees
On Friday, Infosys announced that it had rolled out salary hikes ranging from "mid-single digit to high-single digit" for a majority of employees, both onsite, and offshore. The salary hike, for most employees, would be effective from April 1, while hikes for middle and senior management will be effective from July 1. Here's more on what the outsourcing giant had to say.
Infosys's total employee headcount
As of 31st March, 2018, Infosys had a total employee headcount of 2,04,107 people. While gross employee addition for the year was 12,329, the net addition was 2,416.
Salary hike apart, Infosys creates $10 million special bonus pool
Infosys CEO Pravin Rao clarified that like last year, this year's salary hikes, announced for 85% of Infosys employees, will be differentiated based on performance and contribution of employees. Additionally, the company has also set aside $10 million "incremental investment bonus payout to employees that is in addition to 100 per cent (variable) payout." The hikes come on the back of good business performance.
Infosys attrition data, according to COO Pravin Rao
COO Pravin Rao added that attrition (reduction in staff/employees through normal means) in the company had increased to 16.6% in the March quarter, compared to 15.8% in the last quarter. However, attrition among high-performers had reduced significantly to 9.4%.
Infosys saw a good year in business
Infosys saw revenues from digital services increase by 26.8% in the fourth quarter. For the entire fiscal, Infosys saw a total increase of 25.5%, said Rao. In March, Infosys penned 10 large deals collectively worth $905 million, while for the entire fiscal, their total contract value (TCV) crossed $3 billion. Following the salary hike announcement, Infosys shares rose by 0.58%.
Hikes and bonus among Infosys's new expansion plans
Infosys's 100% variable payout to employees this year is the highest in the past 10 quarters. The hikes, along with the bonus $10 million pool, comes amid the company's renewed focus on retention and re-skilling of employees - part of its four-pillar expansion strategy. The other three pillars include scaling up the company's digital business, energising core business, and localization in foreign markets.
