With attrition rates peaking at 23.5% on a quarterly basis, IT major Wipro Technologies has reorganised its employee band structure in Q2 FY11, leading to progression for 20,000 junior level employees.
Upon joining Wipro through campus recruitments, a fresher ordinarily spends a year in probation, after which he is placed in a ?band? or a level, which he remains in for around four years. With this re-banding exercise, which started in the beginning of the Q2, the company split this structure, creating bands of shorter time frames for progression. The progression will come with an average increase of 7-8% in salary.
?We realised that people are looking at faster growth and in order to be in sync with what is happening across, we split up bands. Now we have a band for people with two years or less experience, above two years experience and above five years experience,? said Saurabh Govil, executive vice president?HR, Wipro Technologies.
While such a strategy was expected to stem the outflow of junior level employees, over the past two quarters, Wipro had issued close to 5.7 million shares in the form of restricted stock units to retain mid-level management employees. Put together, the progression and RSU impacted Wipro?s margins by close to 120 basis points in Q2, a senior official of the company said.