Wipro announces promotions every quarter to check employee attrition
Indian IT company Wipro is planning to offer promotions to its employees every quarter in a step to retain its talent. The company is planning to reward the top performers who are not in the leadership team and will roll out several promotions for its employees, starting July.
“Going forward, the company has decided to offer quarterly promotions to its top performers, up to mid-management level. Wipro is expected to roll out hikes in September, and there are large-scale promotions to be rolled out in July," Wipro's spokesperson said.
Attrition rates have been high across IT companies through the last few quarters as demand for technology talent with digital skills continued to outstrip supply with increasing labor costs. With rising demand, attracting talent, training, and retention gained paramount importance.
Annualised quarterly attrition has started coming down for the IT sector and analysts had said that any commentary on attrition trend would be keenly watched.
Last week, TCS' IT services attrition in the first quarter of the current fiscal inched up to 19.7% on the last twelve months’ basis. TCS CEO Rajesh Gopinathan attributed the rise in attrition to seasonality, and said the company expects the rate to drop in the second half of the year. “Q1 attrition is a bit of a seasonality as juniors leave for studies. We expect the attrition rate to drop from H2," he said in the press conference after the Q1 results.
He added that the current attrition situation is a transient phenomena as it happened due to a demand spike last year, therefore, he expects it to ease as and when supply and demand balance out.
Indian IT companies are incurring high talent retention costs like retention bonus, out-of-cycle wage revision, salary hikes and others to hold on to their people, which in turn has been impacting the margins. TCS' had said that the dip in its Q1FY23 operating margin of 23.1% reflects the impact of its annual salary increase, the elevated cost of managing the talent churn and gradually normalizing travel expenses.
Wipro recorded an attrition of 23.8% in the March quarter. The company will be announcing its results for the first quarter of the current fiscal on Tuesday, 19 July.
“Going forward, the company has decided to offer quarterly promotions to its top performers, up to mid-management level. Wipro is expected to roll out hikes in September, and there are large-scale promotions to be rolled out in July," Wipro's spokesperson said.
Attrition rates have been high across IT companies through the last few quarters as demand for technology talent with digital skills continued to outstrip supply with increasing labor costs. With rising demand, attracting talent, training, and retention gained paramount importance.
Annualised quarterly attrition has started coming down for the IT sector and analysts had said that any commentary on attrition trend would be keenly watched.
Last week, TCS' IT services attrition in the first quarter of the current fiscal inched up to 19.7% on the last twelve months’ basis. TCS CEO Rajesh Gopinathan attributed the rise in attrition to seasonality, and said the company expects the rate to drop in the second half of the year. “Q1 attrition is a bit of a seasonality as juniors leave for studies. We expect the attrition rate to drop from H2," he said in the press conference after the Q1 results.
He added that the current attrition situation is a transient phenomena as it happened due to a demand spike last year, therefore, he expects it to ease as and when supply and demand balance out.
Indian IT companies are incurring high talent retention costs like retention bonus, out-of-cycle wage revision, salary hikes and others to hold on to their people, which in turn has been impacting the margins. TCS' had said that the dip in its Q1FY23 operating margin of 23.1% reflects the impact of its annual salary increase, the elevated cost of managing the talent churn and gradually normalizing travel expenses.
Wipro recorded an attrition of 23.8% in the March quarter. The company will be announcing its results for the first quarter of the current fiscal on Tuesday, 19 July.
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