Infosys to roll out salary hikes from July 2021; pay special incentive to best employees

Multinational tech giant company Infosys announced its results for the fourth quarter FY21. The company’s year on performance is better than the quarter performance. It has earned Rs.26,311 cr revenue from the operation and a profit of Rs.5,078 cr. However, mixed reactions are coming from the analyst side for the company’s performance. 

Even with an improved annual performance, Infosys might have to face one big headache in the coming quarter i.e. attrition number. Infosys has a high attrition number in comparison to big tech giants like the Tata Consultancy Service (that has an all-time low attrition rate of 7.2%) and Wipro (that has 12.1% attrition rate in Q4). 

What makes attrition a maddening factor?

The attrition number is the percentage of employees leaving the company which in turn decreases the size of the workforce. Infosys attrition number comes in Q4 at 15% which is higher than Q3 number 10.3%. And for this same, the company CEO anticipated that for the next two quarters, the number is going to continue in that range due to the huge demand for technology skilled talent in the market because of the coronavirus pandemic which led to digitalisation.

The pandemic uncertainties made the company delay promotion, salary hike and more incentives for the employees in FY21, leading to a high attrition rate. But now the company is increasing its efforts to hire 26,000 freshers from India and abroad and will hike its employee's salary in July 2021. Also, providing the training sessions to its employees when working from the home approach is still continuing in FY22. Hence, the company will now look for many other incentives to retain its hired best-talented employees. 

Lucrative offer to shareholders 

The company has approved a buyback proposal of equity states up to Rs.9200 crore which is approximately 1 billion dollars via the open market route because of high growth in profit as well as sales. The maximum price is Rs.1750 per share and also suggested a final dividend of Rs.15 per share which is subject to shareholders approval. So, with the buyback proposal, they propose an increase to the total dividend per share by 54% over the previous year's dividend. 

It can be concluded that despite having the unprecedented year 2020-21 with the high attrition number, the company has year on year constant currency growth at 9.6 and growth in the digital business to 34% as well as 51.5% overall revenue. Company Infosys quarter-four set up a strong foundation for the next financial year with the expectational results.

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