For Indian IT firms like Tata Consultancy Services (TCS), Infosys, Wipro, HCL Tech, and others that have been struggling due to growing inflation and the macroeconomic slowdown, the forthcoming earnings season will be a litmus test. The hiring, onboarding of new employees, and variable compensation, all of which have trailed below FY22 so far in FY23, also reflect the sector's performance. According to experts, current patterns will continue, at least in the near future.
An employee of a human resources organisation named Sriram Venkat indicated that the variable rewards would be subdued in Q4 FY23. Additionally, he pointed out that while mid-level and higher-level leaders might receive pay adjustments based on business unit performance, lower-band employees will only be marginally affected by the changes.
“In Q4 we can expect variable payouts to be muted. For lower bands of employees, it may range from 85-100 per cent at large cap IT companies. For rest it will most likely depend on business unit performance,” he told
Experts and industry insiders believe that the headcount growth, which slowed down in Q3 FY23, will continue into Q4.
Kalyan Durairaj - Director of HR at FourKites (APAC), said, “The current slowdown has definitely impacted hiring and expansion. Due to economic uncertainties, IT companies are being cautious with their hiring plans, resulting in a slowdown in headcount growth.”
The voluntary attrition may moderate as a result of the lack of chances brought on by industry-wide layoffs, according to experts.
