Mahindra Satyam has tamed its attrition level to 25%. The attrition levels in the scam hit firm had grown to 40% jeopardising company fortunes in the last two years. The turnaround has been scripted by grant of competitive salary hikes and high rate of campus absorption. The company, which has been struggling to retain its employees across all levels, has rolled out an average hike of 15%, with 3%-4% hikes for onshore employees. Headcount at the company stood at 27,722 employees in the first quarter, and it rose to 28,068 people in Q2.
When the scam broke, Mahindra Satyam had an employee strength of 45,000 which declined to 27,000 in FY10, reflecting the severe ramp-down mode that the company went through during that phase.
Much of the hiring in the enterprise solution space was carried out through lateral recruitments, riding on the new combined brand image of Mahindra and Satyam brands, said Hari T, chief people officer, Mahindra Satyam.
?There have been no issues at entry level hiring in the last few months. Our joining ratio from top business colleges was 87%,? he said.
The company also used employee stock option as a retention tool. ?We will continue to leverage this as a programme. We had covered significant portion at mid and senior levels and we will continue to look at it in the coming months to retain and encourage employees,? said Hari T. Mahindra Satyam plans to hire 9,000 people by March 2011.