Infosys, one of India’s leading IT firms, is gearing up to kickstart a new appraisal cycle for the ongoing financial year. However, a cloud of uncertainty hovers over some employees who are still awaiting salary hikes from the previous year’s performance review cycle. This situation highlights the complex dynamics at play in the IT industry amid shifting macroeconomic conditions.
Navigating the Appraisal Cycle
In one of the country’s largest IT companies, the performance evaluation of employees typically unfolds between October and September. This process includes a self-evaluation, with this year’s deadline set for September 29. Subsequently, a manager’s evaluation is anticipated to be concluded by the end of October. The final ratings, revealing employees’ performance, are typically communicated by the first week of December. Historically, salary increments align with the June or July paychecks of the following year.
Employee Concerns
Reports have surfaced regarding pending salary hikes from the last performance cycle, spanning from October 2021 to September 2022. This has left some employees in a state of ambiguity, pondering whether these pending hikes will be seamlessly integrated into the upcoming cycle or potentially overlooked.
During the first-quarter earnings conference, Infosys’s Chief Financial Officer, Nilanjan Roy, indicated that annual salary increases were under consideration. The Indian IT sector has been grappling with challenges due to global macroeconomic conditions affecting technology spending. Notably, Infosys had previously frozen salary hikes in 2020 but resumed them in January 2021.
Industry-Wide Trends
The IT industry in India has witnessed various responses to the evolving economic landscape. Many companies have chosen to provide modest increments, postpone salary raises, or even defer them altogether. For instance, Tech Mahindra opted to defer the salaries of senior-level employees, while HCL Tech decided not to implement raises. Meanwhile, Wipro is expected to announce its salary increments, if any, in the October to December quarter, in contrast to last year’s announcement in September.
This scenario underscores the intricacies of managing human resources in an ever-changing economic environment, where companies strive to balance the well-being of their employees with the need for fiscal prudence.
