Infosys has promoted over 2,000 of its employees and hiked their variable payout after posting robust earnings growth in the past two quarters.
The promotions and hike in variable payout come at a time when the company is trying to bring down its high attrition rate, which rose to 14.1% in the September quarter.
The Bengaluru-based IT major promoted 2,067 employees in the second quarter ending 30 September, taking the total number of employee promotions to 4,711 so far this fiscal.
Besides, India's second largest IT firm has increased employees' variable payout from 80% to 100% in the July-September quarter. Earlier, the company gave 100% variable payout in the December quarter.
Infosys posted a growth of 9.8% in its net profit in the second quarter this fiscal, well above the 6.1% growth in net profit recorded by the India's largest IT firm Tata Consultancy Services (TCS).
The company plans to recruit nearly about 20,000 from campuses in the current fiscal year, Chief Operating Officer UB Pravin Rao said.
Infosys said last month that it was not planning to hike salaries for freshers, while its peers have announced an increase in salaries for entry-level jobs.
"And in terms of compensation increase, we are already at the range which people are talking about. So when we look at competitions, they're talking about Rs 3.3 lakh (average annual salary), we're already at Rs 3.25 lakh for the last couple of years. So we are not seeing any material difference in doing that," The Economic Times quoted Rao as saying.
Recently, top companies like Tata Consultancy Services (TCS) and Cognizant Technology Solutions (CTS) are reported to have decided to hike salaries for freshers by 10-12% after many years.
Infosys revised down its dollar revenue forecast for the current financial year to 6.4-8.4% from 7-9%, leading to a sharp sell-off in its stock prices on the bourses.
"Revenue above consensus on good volume, with pricing up 2.4% quarter-on-quarter. Adds $1 billion in new business to support visibility," said analyst James E Friedman of Susquehanna International Group in a report.
