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HCL Tech won't cut salaries, bonuses; decision on appraisals later

HCL Tech is witnessing stress in verticals like manufacturing and transportation as the clients themselves are under pressure due to coronavirus lockdown

twitter-logoBusinessToday.In Last Updated: May 21, 2020 | 20:09 IST
HCL Tech won't cut salaries, bonuses; decision on appraisals later

HCL Technologies has assured that it will not cut salaries for its 150,000 employees and honour the promised bonuses for the previous year as well despite the expected slowdown in IT sector due to coronavirus pandemic. The company has said that it will take a call on appraisals later in the year.

"Our belief is that the bonuses that we are paying are a function of what people have delivered in the last twelve months and we should honour our commitments to our people. Even during the 2008 crisis, or other past crisis, HCL has never touched employee salaries and we are continuing with the same philosophy," Apparao VV, HCL Technologies' Chief Human Resources Officer, told The Economic Times.

ALSO READ: HCL Tech beats peers, expects coronavirus impact to end by September

A decision on company's annual appraisal process will be taken in July when it is scheduled to begin, he added.

HCL Tech had earlier said that it will honour the 15,000 job offers already made to freshers. "We haven't seen any cancellations (of projects) but on-boarding of new projects has been delayed a little. However, we are seeing a lot of green shoots; today, we have 5,000 open requirements, so we are recruiting in some areas, which are good, neutral and positive (areas)," Apparao said.

ALSO READ: HCL Tech's FY20 profit grows 9.3% to Rs 11,062 crore

Verticals like manufacturing and transportation are stressed as the clients themselves are under pressure due to coronavirus lockdown, he added.

Attrition rate, which used to be around 16-17 per cent, has halved in the past month. "So, the lateral demand might come down due to lower attrition, but the demand for freshers will remain intact. Again, these things can dramatically change if we see the pandemic peaking," he told the daily.

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