In an industry where finding the top talent is becoming increasingly difficult, Noida-headquartered HCL Tech has announced a Restricted Stock Units (RSU) policy covering 3,000 employees, which has been approved by the company's board recently.
This policy, as per HCL Tech's Chief Human Resources Officer (CHRO) Apparao VV, will be an important intervention which the company has made to attract as well as retain top talent when the attrition rates is 15.69% for Q2 FY22 compared to 11.4% in the last quarter.
The company, according to the HCL Tech's CHRO, is on the track to hire 10,000-12,000 in next two quarters and made a net addition of 11,135 employees-the highest ever in a quarter during Q2, FY22.
"The RSU policy specifically was a measure we announced after the company conducted market research on the top talent hiring metrics wherein we observed wealth creation / liquidity offerings as a huge draw to attract the talent through stock ownerships," Apparao said.
In addition, the company has announced wage hikes to the top leadership, which will be effective October 1. The promotions or incentives to the junior level employees have been announced earlier. The top executive said the ongoing talent crunch across the industry is expected to sustain in December quarter, post which the trend may see a downward trajectory.
The IT firm has also announced a payout policy for the company shareholders under which entails entails investor payouts of not less than 75% of Net Income cumulatively over 5 years FY 22 to FY 26. In line with this policy, the company has declared a dividend of Rs 10 /- per share for Q2, being 75th consecutive quarter of dividend pay-out.
The higher costs of talent acquisition along with wage-hikes, bonuses and re-skilling have impacted margins of HCL tech, as per its Chief Financial Officer. The company's operating margin stood at 15.8%.
Despite supply constraints, HCL Tech's deal pipeline, according to the Chief executive Officer(CEO), C Vijayakumar was very robust. The total contract value for Q2 stood at $ 2.2 billion with 14 large deal wins across telecom, life-sciences, healthcare and manufacturing verticals.
Vijayakumar said the company is expecting a good momentum in client additions in the $100-$50 million deal size even as the company's products and platforms business has seen a de-growth by 8% this growth. This optimism, according to HCL tech CEO is based on the increased demand in digital engineering, R&D services as well as robust hiring mechanism to ensure consistent work on large projects.
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