Infosys is being 'stingy' with its salary hikes. Employees clearly unhappy about it!

Worries, for Infosys, India’s second largest software exporter doesn’t seem to be ending. At a time when it’s fighting high attrition rates within the organisation tooth and nail, its first set of salary hikes has employees anything but happy. The software giant doled out its first salary appraisals for the year 2014-15 mostly in single-digits that has its employees questioning the way its new leader, Vishal Sikka, is envisaging the complicated attrition situation in the company.

Infosys announced the hikes through the company's internal intranet portal, Sparsh, last evening. The link to the portal has since then been taken down, employees at Infosys said.

For the 2014-15 financial year, employees on an average have been handed out hikes of around 6.5%, while top performers in the company will get about 9%. Onsite employees will receive a 2% hike.

In the last financial year, Infosys had given out single-digit hikes in April but that was preceded by an off-cycle hike across the company in December that was aimed at boosting employee morale.

"Compensation revisions are being rolled out in 55 countries across the globe, effective April 1 2015. The average increment in India is 6.5% and can go upto 9% for high performers. The letters will be rolled out for those located in India starting March 27, 2015," Infosys said on its company intranet Sparsh, before the link was taken down reported the Economic Times.

"The average increment outside India is 2% and the letters will be rolled out by April 24, 2015. In addition quarterly promotions and role changes will continue to take place across all levels," the announcement added.
Infosys did not respond immediately to an email seeking comment said ET.

According to at least half a dozen Infosys employees who spoke on condition of anonymity, employees on an average are unhappy with the quantum of hikes that have been rolled out across the company and were expecting better salary raises since Sikka took over.


"The hikes are very, very disappointing," said an Infosys employee based in Hyderabad. "We were definitely expecting better hikes than this since Sikka took over, given that he has set out to boost employee morale and made it one of his top priorities since he took over. Don't be surprised if attrition rates go up after this."

For its part, Infosys has regained some of the list momentum since the new CEO Sikka took over last year. And his new initiatives to boost employee morale in past few months have been received well. That in part could be responsible for high staff expectations on the hikes, a company executive said on conditions of anonymity.

"We're extremely disappointed with the hikes. After the 10% raises rolled out to level 3 employees mid cycle last year and with the CEO's engagement efforts and reaching out to the employees, this is the last thing we expected. If the company was looking to arrest attrition, this is really not the way to inspire employee confidence. I am sure a lot of us will start looking out for options," said a Chandigarh-based employee who did not wish to be named.