No recessionary freeze, double digit hikes return
By
siliconindia | Friday, 02 October 2009, 16:03 IST

New Delhi: IT firms' employees' light wallets have become more heavier recently, as companies unties the tight purse strings in terms of variable pay or salary hikes. Companies like TCS, Infosys has lifted their recessionary freeze and have re-introduced double salary hikes, promotions.
The average variable pay in the IT firms is 30 percent of an employee's total salary. The trend of heavier wallets is in stark contrast to the trends a year back, when the global recession forced companies to shelve expansion plans, downsize operations, cut salaries and freeze recruitment. The recovery is witnessed across all sections as companies including carmakers Maruti Suzuki, Tata Motors and Hyundai Motors are busy paying out variable bonuses, reports The Economic Times. Some others, like top white goods maker LG Electronics, biotech firm Avesthagen, consumer products company Dabur and private insurer Bharti AXA Life Insurance are rewarding select employees with salary hikes and promotions.
"It is a people-driven industry. At a time when the sector is witnessing positive signs of recovery, such announcements become even more relevant for both the company and employees. This would not only help companies in retaining their existing talent, but attracting new talent as well," said Joy Nandi, Client Partner, global technology practice at Delhi-based headhunting firm Korn/Ferry International.