Infosys: At over 20%, attritions up, and rising

Written by fe Bureau | Bangalore | Updated: Oct 11 2014, 08:20am hrs
Employee attrition continues to rise at Infosys though the company hopes to bring it down to a manageable level soon. The announcement of a 100% variable bonus payout could be a vital cog of its retention strategy.

The attrition rate at the end of second quarter of FY15 stood at 20.1% against 19.5% in the preceding quarter. For the three months ended September 30, the IT major saw exit of 10,128 employees.

On the current level of attrition, Infosys CEO Vishal Sikka said, We have had, over the last year, a lot going on. Our goal was that in three-four months, attrition will start to come down. Though attrition on a last-twelve-month (LTM) basis continues to be very high, and we are not happy about that, if you look at month-by-month basis, from July to September, the attrition rate is coming down. That is an encouraging sign.

Infosys total headcount at the end of second quarter of FY15 stood at 1,65,411. The management has been making efforts to build a greater connect with employees through a combination of better compensation structure, faster career progression and workplace-friendly policies.

Infosys COO UB Pravin Rao said, Given the amount of emphasis we place on training, we will be comfortable if attrition is 13-15%. The initiatives that we have taken in the last three quarters, attrition is going in the right direction as month-on-month numbers are coming down. We expect things to come back to 13-15% consequently.

Talking to FE, Ian Marriot, Vice-President, Gartner, said, The attrition level at Infosys is a matter of concern and it has to absolutely come down. The management will have to convince the employees that it is great place to work.

According to Infosys HR head, Srikantan Moorthy, its employee survey which saw a participation of more than 1 lakh people has shown that engagement has considerably gone up.