In a surprising move, Infosys has announced salary revisions for a significant number of its employees, diverging from the industry norm of implementing such changes from April 1. The IT giant has opted to kickstart the holiday season by initiating these salary hikes from November 1, 2023. This unexpected gesture, excluding entry-level workers, comes amid a period of sluggish demand for technology services globally within the IT sector.
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Infosys Strategic Salary Revisions for Fiscal Year 2023-24
Infosys, a prominent player in the IT industry, distributed salary revision letters a day before its much-anticipated ‘Stellar Saturday Culture Carnival’ event scheduled for December 16. The communication expressed, “We are pleased to revise your compensation in acknowledgment of your commitment and performance with effect from November 1, 2023.” This strategic move aims to uplift employee morale amidst the challenges faced by the industry.
Average Hike Below 10% Amid Industry Challenges
Insiders suggest that the average salary hike this time is anticipated to be below 10%, with variations ranging from single-digit increases to low-double digits. The decision to implement these revisions during the fiscal year 2023-24 reflects Infosys’ commitment to recognizing and appreciating the dedication and efforts of its employees in overcoming current challenges.
Gratitude for Unparalleled Support
The compensation review, which deviates from the traditional timeline, expresses gratitude to employees for their “unparalleled support and efforts to overcome the current challenges and ensure success in all aspects.” This move signals Infosys’ proactive approach to acknowledge and reward its workforce, reinforcing its commitment to employee satisfaction and motivation.
Active Consideration and Delayed Rollout
The traditional timeline for compensation reviews, typically announced in June with retrospective effect from April 1, experienced a delay in 2023. Infosys CFO Nilanjan Roy, during the earnings conference after the first quarter, had mentioned that the rollout of annual hikes was under “active consideration.” The decision to revise salaries outside the conventional timeframe aligns with Infosys’ agile response to industry dynamics and its focus on employee well-being.
Infosys breaks away from the industry norm, implementing timely salary revisions, the move is poised to have a positive impact on the workforce, fostering a sense of appreciation and motivation during the holiday season.