Infosys, India’s second-largest IT exporter, is gearing up for its ‘performance review cycle–October 2023,’ commencing with self-evaluation on September 29, as communicated via an internal email. According to an ET report, the manager evaluation phase will conclude by the end of October, with individual employee ratings to be disclosed in the first week of December. This assessment pertains to performance spanning October 2022 to September 2023.
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While a fresh appraisal cycle is on the horizon, two employees, who chose to remain anonymous, revealed to the financial daily that they are yet to receive salary hikes from the previous appraisal cycle, spanning October 2021 to September 2022. Uncertainty looms over whether these pending hikes will be incorporated into the forthcoming cycle or deferred.
One employee said that the self-evaluations and achievements have to be updated soon. The employee said that the appraisal process happened last year, but salary revisions which are typically disbursed in June or July, are still pending.
Queries directed to Infosys remained unanswered at the time of this report.
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During an earnings conference following the first quarter, Infosys’ Chief Financial Officer, Nilanjan Roy, indicated that roll out of annual hikes was under “active consideration.”
The Indian IT industry has faced challenges due to global macroeconomic conditions, resulting in tightened technology spending. In 2020, Infosys froze salary increases to conserve cash but reintroduced hikes in January 2021.
Wipro, a rival company in Bengaluru, has delayed hikes for FY23 by a quarter, with payouts slated for the December-ended quarter, according to outgoing CFO Jatin Dalal.
Conversely, industry leader Tata Consultancy Services (TCS) announced annual hikes for FY23, effective from April, with average salary increases of 6-8% and up to 12-15% for exceptional performers.
Last month, Infosys rolled out an average 80% quarterly variable pay for its employees for the first quarter-ended June. Typically, Infosys conducts evaluations from October to September period, with salary hikes traditionally distributed in June or July the following year.
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A third employee confirmed that previous hikes were paid July 2022. The ratings for October 2021 to September 2022 have been assigned, but the associated salary increments have not yet materialized.
In the first quarter ending in June, Infosys reported nearly 11% rise in net profit, reaching Rs 5,945 crore, along with a 10% increase in revenue, totaling Rs 37,933 crore. However, these figures fell short of analyst expectations. The company attributed the reduced revenue growth outlook for the fiscal year to spending cutbacks and client decision delays.
Infosys is scheduled to announce its fiscal second-quarter results on October 12.
