Infosys freezes salary increments
Infosys, the IT bellwether, delivered a shocker on Friday when it announced to its shareholders that there would not be any increment for the time being for its 1,49,000 employees.
Infosys failed to meet its own growth guidance for the just concluded quarter and has given a lower-than-expected growth projection for fiscal 2013. "This is the time to focus only on business. All stakeholders ask for one thing and that is growth. In the current environment, leadership has to focus only on growth.
Today morning after our management council meet we announced that there will be no hikes, of course, employees will understand," said Nandita Gurjar, head of HR. Infosys said markets are volatile and this would not be the right time for wage increase.
"We will give a raise when we have more comfort on business," said V Balakrishnan, CFO of the firm. Last year, the firm had given an increment of 10-12%.
The recruitment and hiring experts, however, refuse to buy this assurance especially when another IT firm, albeit a smaller size, iGate-Patni that has also announced its results on Friday, decided to give a 10% raise to its employees. "It is time these companies start serving their employees and not their shareholders," said S Kandula, HR Head, iGate-Patni.
This is not the first time that the company has announced zero increments. In 2008, Infosys had announced zero increments but, in the middle of the year gave a 10% raise to all.
Infosys has a gross hiring target of 35,000 for the year. The company will give out 16,000 promotions this year, as against around 18,000 last year.
Infosys, the IT bellwether, delivered a shocker on Friday when it announced to its shareholders that there would not be any increment for the time being for its 1,49,000 employees.
Infosys failed to meet its own growth guidance for the just concluded quarter and has given a lower-than-expected growth projection for fiscal 2013. "This is the time to focus only on business. All stakeholders ask for one thing and that is growth. In the current environment, leadership has to focus only on growth.
Today morning after our management council meet we announced that there will be no hikes, of course, employees will understand," said Nandita Gurjar, head of HR. Infosys said markets are volatile and this would not be the right time for wage increase.
"We will give a raise when we have more comfort on business," said V Balakrishnan, CFO of the firm. Last year, the firm had given an increment of 10-12%.
The recruitment and hiring experts, however, refuse to buy this assurance especially when another IT firm, albeit a smaller size, iGate-Patni that has also announced its results on Friday, decided to give a 10% raise to its employees. "It is time these companies start serving their employees and not their shareholders," said S Kandula, HR Head, iGate-Patni.
This is not the first time that the company has announced zero increments. In 2008, Infosys had announced zero increments but, in the middle of the year gave a 10% raise to all.
Infosys has a gross hiring target of 35,000 for the year. The company will give out 16,000 promotions this year, as against around 18,000 last year.
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