It’s time for Infosys employees to rejoice. The IT giant has decided to give its staff a compensation increase of 12 to 13% on average. Employees with high potential may receive a raise of 22 to 23 percent, plus a retention bonus.
This approach is intended to lower turnover and control attrition, which was at 27.7% in Q4. This appealing raise is likely to lure both experienced professionals and freshers to the Company. According to Mint, Infosys hired 85,000 freshers in the previous fiscal year and plans to hire 50,000 college graduates in FY23.
Infosys’ top performers can expect better roles and more opportunity to upskill and receive training on emerging technologies like artificial intelligence (AI) and machine learning (ML). Infosys has been witnessing substantial attrition recently. Its attrition rate was 10.9 percent in March 2021, but it increased to 25.5 percent in the quarter ended December 31.
Infosys isn’t the first IT firm to announce compensation increases. Tata Consultancy Services (TCS) has also declared that in the financial year 2023, its employees’ salaries will be increased by six to eight percent. Microsoft, too, recently announced its aim to double its global compensation budget. This is Microsoft’s strategy for maintaining competitive pay in a competitive labour market.