Infosys, India’s second-largest IT services firm, has formally announced its annual salary hikes, affecting employees across various job levels. The plan, revealed during a town hall meeting at the company’s Bengaluru campus, will see salary revisions applied differently based on job level, with increases aimed at acknowledging individual performance evaluations.
During the town hall, Chief Human Resources Officer Shaji Mathew confirmed, "Those falling at and below job level five (JL5) will receive hikes with effect from January 1 and those at job level six (JL6) and above will get the revised pay from April 1." This phased approach marks a notable shift from the company’s previous timeline, where salary revision letters were typically issued by June for hikes effective from April.
This year, employees at JL5 and below—which includes software engineers, senior engineers, system engineers, and consultants—are set to receive their revised salaries earlier. Meanwhile, those at JL6 and above, such as managers and senior delivery managers (excluding vice presidents), will experience their increases at the beginning of April.
Mathew noted, "Managers have already shared the ratings based on your performance and evaluation criteria. That feedback has also been shared with us. We are working on the percentage of hikes based on individual evaluation." This clear focus on performance evaluation underlines the company’s strategy to reward high achievers with potentially greater increments.
Chief Financial Officer Jayesh Sanghrajka provided additional insights, stating, "We are expecting (a hike of) 6-8% in India. And you know, the overseas comps will be in line with the earlier comp reviews." This signifies expectations for moderate adjustments, particularly for employees based abroad, where increases are predicted to be somewhat subdued, landing within the low single-digit range.
For the fiscal year 2021-2022, Infosys had implemented salary freezes as part of cash conservation efforts, and the subsequent restoration of salary hikes reflects the firm’s improved financial situation. The last salary revision took place relatively recently, with adjustments occurring last November.
These planned increases come alongside Infosys’s stronger-than-expected financial performance for the October to December 2023 period, which reported an 11.4% rise in net profit and 7.6% revenue growth compared to the previous year. This positive shift not only supports the rationale behind salary hikes but also encapsulates the wider recovery trend within the IT job market.
Notably, the financial uptick is anticipated to influence job opportunities, as the IT sector is projected to experience substantial growth. Recruitment and rehiring strategies are increasingly geared toward adapting to market demands, aligning with forecasts predicting 15-20% growth across tech roles by 2025, especially for highly specialized areas such as AI and data analytics.
Infosys’s latest announcements underline their commitment to employee welfare and aim to maintain morale and workforce engagement amid recovery efforts throughout the IT sector. Such strategic moves resonate with employees, aiming to rekindle confidence not just within Infosys but across the broader IT employment market.
This comprehensive salary restructure reflects Infosys's proactive stance, aiming at ensuring retention of top talents who contribute significantly to the firm’s success as it navigates the competitive IT arena. Insights gleaned from performance evaluations and revenue performance dictate not just immediate financial benefits to employees, but also bolster Infosys’s reputation as a competitive employer willing to recognize and reward hard work.