Indian IT companies like Wipro, HCLTech, Tech Mahindra, and LTIMindtree are delaying wage hikes, causing frustration among employees. Infosys, which gave last year’s hikes in November instead of June, hasn’t planned for this year’s increases yet.
Infosys CFO Jayesh Sanghrajka said they are considering factors like inflation and past wage revisions before deciding on hikes. The delay follows a significant drop in headcount across major firms. HCLTech, for example, reported its largest headcount drop of 8,080 in the first quarter of FY25.
While Tata Consultancy Services stuck to its wage hike schedule, Tech Mahindra and LTIMindtree have postponed theirs. Tech Mahindra plans to review the situation in the year’s second half, while LTIMindtree aims to give hikes between October and December. HCL and Wipro have not set dates for their hikes yet.
This industry heavily relies on employees, with over half of its costs being wage-related. Delaying hikes helps companies maintain operating margins but affects employee morale, especially for junior-level employees who rely on these raises as a primary job incentive.
Employees are unhappy with the lack of communication and the continuous delays, making them consider job-hopping for better pay. Experts warn that this could lead to challenges in retaining junior talent and managing wage costs. However, some analysts believe employees have fewer job-switching options due to slow growth and low hiring rates in the industry.
The IT companies are betting that employees won’t leave immediately and that revenues will improve in the next year, allowing raises to be reconsidered.
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