HCL plans to give Mercedes-Benz to artists
It’s a technologist’s market and IT firms are warming up to nice perks and cash-based incentives to retain talent as replacements can cost 20% more. The top performers in the US, for example, can drive home a Mercedes-Benz.
HCL CHRO Apparao VV said that the proposal is with the board for approval. The company gave 50 Mercedes Benz cars to the top performers in 2013, but later discontinued the practice.
“Replacement hiring cost is 15-20% higher. Hence, we are actively participating in skilling our workforce. If you need a Java developer you will get them at the same price point. But a cloud professional cannot be hired at the same cost,” he said. HCL Technologies plans to hire 22,000 freshers in the current financial year as against 15,600 last year.
“HCL has a good retention package with a three-year cash incentive scheme which is 50-100% of the CTC every year. At least 10% of the critical talent in leadership teams has benefited from this,” he said.
On an LTM (last 12 months) basis, HCL’s IT services attrition grew by 11.8 per cent in the June quarter from 9.9% in the previous quarter. Apparao said Indian IT companies are also working with candidates who have withdrawn from job offers. “Declining job offers is very high today because potential job seekers are getting many job opportunities,” he said.
TCS CHRO Milind Lakkar said that overall job market is hot. “So, yes, there will be some impact on leaving the job. But it is part of our operating model, and we will manage it. I don’t think it will have a material impact on any business parameters,” he said recently. Earning Call.
Infosys’ voluntary exit count, this time done on an LTM basis rather than quarterly, increased sequentially to 13.9 per cent in the first quarter, from 10.9 per cent. Infosys COO UB Pravin Rao said job losses would probably be around this level for the next few quarters, given the high demand.
“There are two factors. One is that the growth has made a massive comeback after the first quarter. And second, the growth (in jobs) has been largely in India. Our onsite percentage is 24.3%; that’s four quarters. Earlier it was around 27%,” he said. Infosys has introduced skill tags that allow employees to establish their skill expertise in new age/niche technology areas.
Wipro’s voluntary attrition rose 340 basis points sequentially to 15.5%. “The dramatic shift to a remote work environment has made labor more mobile and freer in all sectors and markets. Hence, high attrition has become a universal issue,” said Wipro CEO Thierry Delaporte.
Wipro CHRO Saurabh Govil said 10,000 promotions were given during the June quarter, compared to 7,300 in the year-ago period. “We will be hiring 12,000 freshers this year and onboard 30,000 campus offers in the next financial year. Next year around 22,000 people will attend it.
Govil said the company is giving skill-based bonus to the employees and about 10,000 of them got it in the June quarter. “It’s 10%-20% of their salary.” He said that most of the attrition is in the experience level of 2-5 years.