Global IT services company Capgemini has been receiving a lot of flak on social media for its minimal salary hike. Indian IT professionals voiced their disappointment on Capgemini's 'zero hike', while some even called it the company's voluntary attrition strategy. Employees have been tweeting about the company's negligent increment with the hashtags - CapgeminiBetraysEmployees and Capgemini-BetraysEmployees.
Employees are furious that they received 0-0.50% hike while the company had a 7% growth in constant exchange rate to Rs 3,153 million in Q1 of 2018.
"Our employee remuneration is defined in an objective process, consistent with industry norms, to ensure we are aligned with our customer needs, business priorities, and the overall industry evolution. Annual increments are determined by individual performance and potential, and the strategic business goals of the company," Capgemini said in response to the backlash.
A Twitter user asked if Capgemini made 0% profit and if its top management would accept such a hike. Another user said that it is the company's way to lose it labour force 'naturally'. "One side you say Capgemini starts the year with an excellent growth momentum, Other side you are not capable to give at least 1% hike (sic). #CapgeminiBetraysEmployees," tweeted another user. "Paytm is giving me more Cashback than CapgeminiIndia hike this year #capgeminibetraysemployees," yet another user joked.
Low hikes and salary cuts are often means adopted by companies going through financial distress. However, Paul Hermelin, Chief Executive Officer of Capgemini Group had recently said, "Capgemini starts the year with an excellent growth momentum. The Group continues to win market share, reflecting the alignment of its service portfolio with customer demand for both innovation and competitiveness. Demand is particularly strong in Europe and North America, driven notably by the financial services, consumer goods and manufacturing sectors," as mentioned in reports.
Not only Capgemini, TCS employees also took to a confessions page on Facebook to express their disappointment with the yearly increment. Sources told the newspaper that most employees have received 3-4% hike, while the top performers probably have received 8%.