Indian IT services company Infosys has charted strategy for controlling attrition rate that was 18.7 percent in Q4 FY 2014.
Out of 18.7 percent, 1.2 percent was involuntary attrition.
In order to manage the alarming attrition levels, Infosys, which competes with Wipro, HCL, TCS, etc. has given two rounds of compensation increase 6 percent to 8 percent and 6 percent to 7 percent in the last six months.
In addition, Infosys restructured a variable compensation that is one of the big demands from its employees. Promotions were one of the tools.
The Bangalore-based Infosys has given a commitment to its employees that it will focus on promoting people inside rather than bringing people from the outside.
Infosys invested in training and academy programs which will allow people to move up. It also implemented a tech stream which will allow technology people to move up without moving into management.
“We have implemented a fast track program which will allow high performers to keep moving up. We are hoping that all of this will have an impact and attrition will start coming down,” said SD Shibulal, managing director and CEO of Infosys, during an analyst meet.
Infosys says the majority of the people that leave the IT services company are in the one to four year experience range.
The company has noticed three main reasons for exit of its resources.
First, people who are looking for additional education tend to move. This kind of exodus happens during the first 1-2 year of their job at Infosys.
Second, people with 3-5 year experience are leaving Infosys because they want to relocate after their marriage because their spouses are working in a different location where we do not have office presence.
Third, career opportunity and career progression is also impacting Infosys.
“An approach of providing our people the first opportunity to take up a new role or a new kind of an engagement before we open it for hiring something that we’re doing to address that population of people who have a desire and an ambition to grow fast and of course things like the fast track program that we just announced will help, but these are the top three reasons that we’re seeing from the exit interviews,” said Tan Moorthy, group head of Human Resources and SVP, Infosys.
Infosys is worried about the fact that LTM attrition increased to 18.7 percent in Q4 compared to 18.1 percent in Q3. Q4 attrition comprises of voluntary attrition of 17.5 percent and involuntary attrition of 1.2 percent.