To retain talent, IT giant Infosys increased its internal promotions by 3.5 times compared to last year and doubled the coverage of its employee stock ownership plan (ESOP), according to a report.
The IT industry, faced with an alarming attrition rate, has doubled down on retraining and talent retention efforts using various monetary and non-monetary compensations. In the first three months of calendar year 2022, Infosys experienced an attrition rate of 27.7%.
Tata Consultancy Services (TCS), India’s largest IT company by revenue, recorded an attrition rate of 17.4%, while HCL Technologies’ attrition rate was 21.9% during the quarter from January to March. For Wipro and Tech Mahindra, churn rates were 23.8% and 24%, respectively.
Head of Infosys’ human resource development group, Krish Shankar, said, “Most employees are leaving due to external market demand according to our analysis,” said The economic period. He added: “It is also due to other personal reasons such as location preference and flexibility (in work) after the pandemic.”
Over the past 12 months, the IT firm has also bolstered its “Bridge” program, which helps a mid-career software engineer become a consultant, power programmer or digital specialist after three months of training.
After retraining, candidates can switch between streams as they also get higher pay, Shankar said. HEY.
The rise in digitization spending caused by the pandemic has led to a massive demand for talent in recent quarters.
Talk to HEYsaid Infosys’ human resources manager, “Freshmen are much better at execution than an experienced employee who passed out five years ago.”
The ET report indicates that Infosys also offers premium compensation for specific skills and salary aligned with market trends in areas related to cloud, big data analysis and specializations such as SAP and Salesforce areas that have faces higher attrition.
The IT company will also open offices in Tier II locations such as Coimbatore, Vizag, Kolkata and Noida, to attract employees who leave the metropolises to stay closer to home, HEY reported.