Mid-tier IT firms such as Tech Mahindra and MindTree may raise salaries by 7-12 per cent this fiscal to ensure they do not lose talent to top players TCS, Infosys and Wipro, according to HR service providers.
The larger players have announced wage hikes ranging between 6 per cent and 10 per cent for this fiscal.
“Current environment is challenging and companies are looking at preserving their bottomline. Despite that, keeping employees’ interest in mind, organisations have given hikes ranging from 8-12 per cent, which is a good development…
“In general, we can expect 7-12 per cent hikes for employees working with mid-tier IT companies,” Randstad India President (Staffing) and Director (Marketing) Aditya Narayan Mishra said.
He added that as the demand for IT services increases in the coming quarters, one can expect above-average hikes.
Last week, Infosys said its employees in India will get on an average 8 per cent increase, while Wipro said it has raised salaries by 6-8 per cent.
India’s largest software services exporter Tata Consultancy Services (TCS) has increased wages by 8-10 per cent in India and 2-4 per cent for overseas workforce.
HCL Technologies has started its appraisal process and is expected to make an announcement by July-end.
“It is most definitely a positive action for organisations to recognise their existing employees and performers. Any hike – however marginal – has a significant impact on the morale and longevity of an employee,” TeamLease Services Senior Vice President Surabhi Mathur-Gandhi said.
“To retain talent and ensure they do not lose out to larger names, small and mid-size companies would need to ensure they adhere to some market rationalisation on compensation levels,” she said.
The headhunting firms also believe that the companies should increase their spending on retention activities.
“Management and HR managers should invest in employee engagement initiatives to keep their morale high during challenging times. This will help in further controlling attrition over the next few months, as the economy improves,” Randstad India’s Mishra said. (Source:ET)
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