Pay hikes at IT cos to be flat despite turnaround
“Some companies may also hold back hikes and push it by a quarter or two. Depending on the business clarity they will take a call. Companies will finish the appraisal procedure on time, but the actual hike might not happen during the April quarter,” she added.
Experts point out that with rising wage costs dealing a heavy blow to profitability margins, coupled with sluggish business growth, IT companies can no longer afford double-digit increments across the board.
“If you look at the industry in the past 10 years, we have given two salary increases in a year as there was a lot of demand for professionals and attrition was high,” said Saurabh Govil, senior vice-president, HR, Wipro Technologies.
“That is not the scenario currently. The increases which we were giving 10 years back were different. Obviously, things will come to normal at sometime, that is how the industry life cycle works,” said Govil.
However, the salary increases in the coming financial year will be more focused and given largely to the strong performers. Suparna Rao, co-founder & CEO, Excellence4u, an employee assessment firm, said that IT companies are likely to be give hikes for specific business verticals or teams that have performed well during the year and very unlikely to go for any across the board hike.
FY13 has been tumultuous for employees as many companies had either deferred their hikes or
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