Infosys attrition rate climbs up again

Attrition rate in IT major Infosys Ltd has climbed up again in April-June quarter of fiscal 2016-17 after declining over the quarters since its first non-founder Chief Executive Vishal Sikka joined on August 1, 2014.

According to the employee metrics the global software major released on Friday, 10,262 techies left the company in the first quarter as against 8,373 quarter ago and 8,553 year ago.

“Attrition rate increased to 15.8 per cent in Q1 from 12.6 per cent in January-March quarter (Q4) of fiscal 2015-16 and 14.2 per cent in like period year ago on annualised standalone (Infosys),” the company said in a statement.

On consolidated basis, attrition rate went up to 21 per cent in Q1 from 17.3 per cent quarter ago and 19.2 per cent year ago, as more employees left its subsidiaries, especially its back office (Infosys BPO).

“Attrition was more in subsidiaries like Infosys BPO and at entry level in the parent company (Infosys). Retention at higher performers level has been good,” said Infosys human resources head Krishnamurthy Shankar at a news conference here.

Though the outsourcing major hired 13,268 techies, including 5,260 laterals in the quarter under review, net addition was only 3,006 due the exit of 10,262 employees.

In January-March quarter, net addition was just 661 though gross addition was 9,034, including 5,266 laterals, as 8,373 employees left the parent company.

In a related development, Infosys allotted restricted stock options (RSUs) at par value (Rs.5 per share) to 7,898 high-performing employees up to mid-level managers in the parent company and subsidiaries under the 2015 employee stock compensation plan.

“The RSUs shall vest over four years from the date of grant,” the statement said.

The company has also allotted RSUs of $2-million value with effect from August 1 to Sikka as approved by the shareholders through postal ballot on March 31, with four-year validity.