Tech Mahindra is not giving appraisals to its senior employees. Here’s why

As many IT firms are grappling with changes and changing the ways of doing business, Tech Mahindra (TechM) is also not new in this. In the latest move, Tech Mahindra has suspended appraisal cycle for its senior employees.

The announcement was made on a webinar chaired by its Chief Operating Officer L Ravichandran, employees told ET. They also said the affected employees will have to wait at least two quarters for a salary hike.

"We thought the wage increases would be very bad but we did not expect this. At least there are no large scale layoffs so far. That was also a worry,” a TechM employee who was on the webinar told ET.

Others said that people were agitated about the move and that internal messaging groups were flooded with discussions about the announcement.

The move has been confirmed by TechM but the company also cleared that the appraisals had not been postponed indefinitely and that the affected employees would be informed about their hikes after a management review.

"This decision is not related to our performance in the third quarter. This was an item of discussion and once there is a management review, the employees will be informed," a TechM spokesperson told ET.

According to an analyst, TechM is increasing its fresher intake to manage its pyramid and boost its margin.

"Indian IT has a problem because their pyramid is more bulky than it was in the middle. You don't want the freshers to leave because you have invested in their training but if you can create a situation in which more senior employees start looking to leave then it works in your favour,” an industry executive told ET.