The company added 11,506 people in the three-month period, but 10,627 left the organisation, resulting in a net addition of 879 people.
Infosys CEO SD Shibulal said, “We tried hard to listen to our employees. The concern was not about compensation but other things like predictability, career growth and variable compensation.”
Infosys gave around 7,500 promotions in the quarter and implemented other measures to stem the attrition rate. It has brought down the variable component in the salary, implemented a fast-track career progression cycle and enabled growth opportunities for employees in newer areas of technologies.
The attrition rate of Infosys has raised certain degree of concern among the analyst community. Ian Marriott, vice-president, Gartner, said, “The 20% attrition level is a lot. It is a huge turnover.”
JP Morgan, in its note on Infosys, said, “Quarterly annualised attrition increased significantly in the June-14 quarter, making it the highest attrition in the last four years. Quarterly annualised attrition rose from 22.7% in 4Q FY14 to 26.5% in 1QFY15.”
However, the company is hopeful that the attrition level would come down in the coming quarters. Infosys chief operating officer UB Pravin Rao said, “Employee attrition rates are worrisome and we are implementing various initiatives to retain good talent.”