NITES has alleged that the controversial practice is illegal, and filed an official complaint on 5 January.įollowing reports from The Register and public backlash, HCL quietly removed the policy for one bonus – known as the Employee Performance Bonus (EPB) – but not all of the bonuses listed on its company intraweb.
Why don't you stick around?Īccording to IT labour rights nonprofit Nascent Information Technology Employees Senate (NITES), HCL has also taken an unorthodox approach to preventing attrition – in the form of issuing clawbacks on bonuses for employees that resign. An HCL exec said that he expected the company's attrition rate to continue before it moderates. In the calls, execs from TCS and Wipro were optimistic about attrition stabilising or improving in the next quarter. All these companies reported 12-20% attrition in March ended quarter in 2020–the pre-pandemic level.Those three companies saw their highest attrition rates in three years, and were forced to raise hiring targets amid a pandemic-induced boom in global digitalisation demand as well as a trend from shifting data centres to clouds.
#ATTRITION RATE IN IT INDUSTRY 2022 SOFTWARE#
India’s largest software exporter Tata Consultancy Services was the only company among the top four to report a sequential uptick in attrition–21.7%, up 180 basis points. HCLTech’s attrition was flat at 23.8% while Wipro’s metric moderated 30 basis points sequentially to 23%. It clocked 27.1% despite a 130 basis point fall sequentially.
It means we have to hire fewer replacement people, less recruiting costs, and you saw that in our improvement in G&A (general and administrative) expenses this quarter, and there is less ramp-up time for new hires,” said KC McClure, CFO, Accenture in an analyst call.Īmong the Indian companies, Tech Mahindra reported lowest attrition during Q2 at 19.6% while Infosys reported the highest attrition number among the top five Indian IT firms. “This year attrition came down at a tick more, and we are really pleased with that. This was an improvement on a cyclically low-attrition quarter. It has fallen from 20% during the June-August quarter to 13% in the September-November quarter. Last week, Accenture Plc said there has been a sharp dip in attrition numbers. This has resulted in a cool off in terms of employees looking for other opportunities while the switch hikes, too, have plateaued from peak levels seen during the last 12 months. Global companies such as Microsoft, Cisco and Amazon have announced layoffs globally and, in some cases, their Indian operations too have been impacted. Overall, the hiring funnel has also shrunken since Q2 and with cautious shifting of jobs, attrition rate is expected to slow down (and) hit pre-pandemic level, according to insights from TeamLease Digital. “While the companies were operating at a healthy 12% during the pre-pandemic period, which is a healthy number for the sector, even the current range is a significant improvement,” he added.
#ATTRITION RATE IN IT INDUSTRY 2022 PROFESSIONAL#
We have deployed measures such as broad-based hikes, promotions and retention incentives including professional growth opportunities, to stem attrition,” he added.Īccording to Sunil C, CEO, TeamLease Digital, attrition in the IT Services sector is down to 17-18% from a peak of 25% seen during the first half of 2022. “We began witnessing a drop in attrition from the previous quarter itself. Tech Mahindra CFO Rohit Anand, told ET that the company’s quarterly annualized attrition was down to 16% during Q2FY’23 from 18.1% sequentially.
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