Within a fortnight of NR Narayana Murthy returning as the chairman of Infosys, the company took the first major step to quell employee dissatisfaction by announcing pay hikes for its eligible employees.
"(There will be) an average increase of 8% for employees based in India. Employees based in other geographies, who have not been covered by salary increments in February 2013, can look forward to an average increase of 3%," Infosys said in a statement.
The pay increase will be effective July 1 for most of the staff, while the company’s global sales force will see increases effective May 1, it said.
Infosys founder Murthy was recalled from retirement and appointed as the executive chairman on June 1. He faces the challenge of steering the company to stronger growth after two years of disappointing results that saw Infosys, once Indian IT’s bellwether, lose market share to rivals such as Tata Consultancy Services and US-based Cognizant.
Last year, Infosys had given hikes only during the month of October as against the practice of salary revision during April-May. Even after delay, the average salary raise was around 6%, which was then perceived as lower than industry average.
This year, too, as Infosys disappointed with its annual revenue forecast. There was widespread speculation among its employees that the company would delay pay hikes, which would be lower than the industry average.