Infosys gives 6-7 pc wage hike to employees

     Bangalore, Apr 15 (PTI) Country's second largest software
services firm Infosys has raised salaries of its employees
in the country by 6-7 per cent and by 1-2 per cent for onsite
workers, effective April 1.
     "We have increased salaries. We have given salary hikes
of 6-7 per cent for offshore and 1-2 per cent onsite
employees, effective April 1," Infosys CFO Rajiv Bansal said.
     The increase in salaries and promotions that have been
rolled out and the investment in new visas is likely to impact
the first quarter margins by about 3 per cent, he added.
     Infosys added 10,997 employees (gross) in the last
quarter of FY'14 and 39,985 during the fiscal to take its
total headcount to 1,60,405 people.
     "This is the second time we are giving compensation
increase over the last nine months. Nine months back, we had
given a compensation increase of 6-8 per cent offshore,"
Infosys CEO and MD S D Shibulal said.
     The company has been showering its employees with
incentives including promotions and salary hikes in a bid to
boost morale and check rising attrition.
     The Bangalore-based company, which has trailed peers TCS
and Cognizant on growth, is also looking at weeding out
non-performers to improve efficiency.
     People following developments at the firm said focus is
on retaining quality talent, while letting go non-performers,
something Founder and Executive Chairman NR Narayana Murthy
has reiterated at various fora.
     About 12,500 employees have been promoted since October.
     Infosys, as part of performance improvement programme,
allows 'poor performers' to undergo training to get into
shape. These employees then undergo a review and those who
fail are asked to leave.
     Murthy was brought back at the helm in June last year to
try and pull Infosys back on the growth track following
several quarters of dismal performance.
     Within weeks of his return, Infosys increased salaries of
its employees in India during 2013-14 by an average eight per
cent.
     In 2012, Infosys had delayed hikes and salary increases
were given only in October when the company came under
pressure due to increments offered by peers.
     In January, Murthy had said the company is looking
at returning to its practice of announcing salary increments
effective April.
     According to global HR firm Aon Hewitt, employees in the
IT sector (Hi-Tech industry) can expect an average salary
increase of 10.2 per cent during 2014.
     Increments in the software products industry are
estimated at 10.8 per cent and knowledge process outsourcing
at 11.9 per cent.