HCL Technologies is suspending salary hikes for FY21 due to COVID-19.
Right after the HCL Technologies Q1 result announcement, Prateek Agarwal, CFO, HCL Technologies, said, “the company has decided to suspend wage hikes for the year due to the pandemic.”
Quarterly results of Top Indian IT companies already have beaten expectations. However, HCL Tech joined Infosys, TCS, and Wipro, who have already suspended wage hikes for FY21 due to the Covid-19 pandemic.
Many IT industry employees looked happy after hearing Q1 results of Top Indian IT companies; however, news of no salary hike and no pay increase in the year is demotivating for Software Engineers and IT professionals.
While the announcement from Prateek Agarwal, CFO, HCL Tech was specific to Wage hikes, it is not clear if employees will get an annual bonus or variable components (if applicable) in their yearly pay package based on company performance.
After no salary hikes in HCL Tech and other Indian IT companies, The Indian IT industry has divided into two groups on this topic :
- Who says, “We are thankful at least we have a job and the monthly salary.”
- Who says, “Why always low-level employees suffer the crisis, and especially when the companies are not in losses, IT companies are putting these measures to increase revenue.”
Probably you may have another opinion; however, Indian IT Industry employees need to stay healthy and focus on what is more important. And undoubtedly having a stable job is the demand of the current situation as many of us may not have much savings and got family to feed and EMIs.
Here are some Other Topics:
HCL Freshers Hiring:
HCL Technologies onboarded 1,000 freshers in Q1 and will continue to hire depending on the need and attrition rate.
HCL laterals Hiring:
- HCL hired 2000 experienced professionals in the Q1 and continue to do selective hirings in the coming quarters based on the project pipeline and attrition rate.
- VV Apparao, Chief Human Resources Officer, said that HCL typically hires approximately 4000 laterals per quarter; however attribution rate has reduced 14.6 in the last quarter, which is why the hiring numbers are less.
H1B Visa Ban and US Visa restrictions impacts on HCL:
- 68 percent of HCL employees in the US are locals
- The company had reduced its H-1B dependency significantly to 2,781 in FY19 by local Hiring
The IT services company reported a 7.3 percent quarter-on-quarter fall in its June quarter net profit at Rs 2,925 crore.