ByWipro, one of India’s leading IT services companies, has announced a salary increase for its top-performing employees, set to take effect in September 2024, according to media reports. The company revealed that employees who have consistently demonstrated exceptional performance will receive an average salary hike of 8%, a noticeable improvement over last year’s raise of around 6%, according to Mint.
Performance-Linked Salary Hikes
The IT sector has been under pressure globally due to reduced IT spending as clients scale back budgets amidst economic uncertainties. Despite this, Wipro continues to reward its high-performing employees, positioning the salary increase as part of its broader talent management strategy. The company’s decision to raise salaries is expected to boost the overall compensation structure, particularly for its offshore employees who form the bulk of its workforce. Last year, Wipro’s salary hike for top-tier performers hovered around 6%, signaling a steady increase in its commitment to rewarding excellence.
This year’s 8% average raise will apply to around 75% of Wipro’s 200,000 offshore employees. Those stationed on client sites, primarily in countries like the U.S. and Europe, will receive a lower hike of around 3%. The updated salaries will come into effect starting September 1, 2024, with the revised figures expected to reflect in October payrolls, alongside arrears for September, as stated in an internal communication from Saurabh Govil, Wipro’s Chief Human Resources Officer.
Industry Slowdown and Global Trends
Wipro’s move comes against the backdrop of a slowdown in the global tech sector, with many companies curbing their IT expenditure due to economic uncertainties. This trend has impacted growth rates across the Indian IT services sector, which grew at a mere 3.8% last year, the slowest in several years. Nevertheless, leading firms like Wipro and Tata Consultancy Services (TCS) continue to announce performance-based hikes, keeping employee motivation high.
For comparison, TCS, another major player in the Indian IT sector, announced salary hikes for its best-performing employees ranging in the double digits for 2024. The rest of its workforce saw raises between 4.5% and 7%, effective from April 1, 2024.
Employee Costs and Financial Outlook
Wipro’s salary hike is also set against the company’s growing operational costs. In the fiscal year 2023-24, employee expenses amounted to ₹549 billion, representing 61% of the company’s total revenue of $10.8 billion. These costs underscore the centrality of human capital to Wipro’s business model, where employee expertise and service delivery form the backbone of its operations.
As the company gears up for further growth, it also has plans to increase its hiring. Specifically, Wipro is targeting fresh talent from universities, aiming to bring 10,000 new hires on board by March 2025, focusing on strengthening its talent pipeline for future projects.
Leadership Changes and Strategic Direction
The company has undergone significant leadership changes in recent months, with Srinivas Pallia taking over as the new CEO in April 2024. His leadership comes at a crucial time when the Indian IT sector is grappling with global challenges. Under his guidance, Wipro is expected to sharpen its focus on employee development, client engagement, and operational efficiency to navigate the sector’s slow growth.
Looking Ahead
Wipro’s salary hike reflects the company’s broader strategy of talent retention and development amidst a challenging economic environment. With its emphasis on rewarding top performers and increasing hiring from campuses, Wipro aims to build a resilient and competitive workforce that can meet evolving client demands. As the tech sector recovers and global markets stabilize, the company’s efforts to retain talent and manage costs will be key to its sustained growth.
Conclusion
Wipro’s announcement of an 8% average salary hike for its best performers highlights its commitment to recognizing and rewarding talent, even as the global tech industry faces economic challenges. With increased hiring plans and a strategic focus on employee development, the company is positioning itself for long-term success, leveraging its vast talent pool to stay competitive in a dynamic market.
FAQ:
- What is the average salary hike for Wipro’s top-performing employees in 2024?
Wipro announced an average salary hike of 8% for its top-performing employees, effective from September 2024. - How does Wipro’s salary increase compare to previous years?
Last year, Wipro’s high performers received a 6% salary hike. This year’s 8% increase shows the company’s ongoing focus on rewarding top talent. - Which employees will benefit from Wipro’s 2024 salary hikes?
Around 75% of Wipro’s 200,000 offshore employees will receive the 8% raise, while those stationed at client sites will see a 3% hike. - When will the revised salaries be reflected in employees’ payroll?
The salary increases will be effective from September 1, 2024, and will be reflected in the October payroll along with arrears for September. - What were Wipro’s employee costs in the 2023-24 fiscal year?
Wipro’s employee costs stood at ₹549 billion for the fiscal year 2023-24, making up 61% of its total annual revenue. - What are Wipro’s hiring plans for the coming year?
Wipro plans to hire 10,000 freshers by March 2025, primarily through campus recruitment.
