IT firm Infosys is looking at showering employees with incentives including promotions every quarter and a 5-7 per cent salary hike for 2014-15 in a bid to boost morale and check rising attrition.
The country's second-largest software services company, which has trailed peers TCS and Cognizant on growth, is also looking at weeding out non-performers to improve efficiency.
"Promotions will be given every quarter," according to an internal mail to staff.
People following developments at the Bangalore-based firm said the focus is on retaining quality talent, while letting go non-performers, something Founder and Executive Chairman NR Narayana Murthy has reiterated at various fora.
The promotions will be across the board. About 12,500 employees have been promoted since October.
Infosys, as part of its performance improvement programme, allows poor performers to undergo training to get into shape. These employees then undergo a review and those who fail are asked to leave.
Infosys, which has over 1.5 lakh people on its payrolls, will increase salaries of junior and mid-level employees in India by 5-7 per cent for 2014-15, effective April. It is working on the hikes for onsite and senior-level employees.
The announcement is expected to be made in April, when the company releases its financial results for the fourth quarter and full year ending March 31.
Infosys had an attrition rate of 16.3 per cent last year compared with 14.7 per cent in 2012.
In the October-December quarter, the attrition rate was 18.1 per cent, higher than 17.3 per cent in the previous quarter and 15.1 per cent in the quarter a year earlier.
Murthy was brought back to the helm in June to try and pull Infosys back on the growth track following quarters of dismal performance.
Within weeks of his return, Infosys increased salaries of its employees in India for 2013-14 by an average 8 per cent.
In 2012, Infosys had delayed hikes and the salary increases were given only in October, when the company came under pressure from increments offered by peers.
In January, Murthy said the company is looking at returning to its practice of announcing salary increments effective April.
According to global HR firm Aon Hewitt, employees in the IT sector (Hi-Tech industry) can expect an average salary increase of 10.2 per cent for 2014. Increments in the software products industry are estimated at 10.8 per cent and knowledge process outsourcing at 11.9 per cent.
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