12/7/2023 0 Comments Attrition rate in it industry 2022![]() In terms of salary increases compared to the prior year, the Mining & Mining Services (6.3%, up from 5.7%) and Consumer Goods (6.1%, up from 5.7%) industries will expect to see the highest growth among all the sectors surveyed.īonus payouts this year will also see a slight increase across most industries, except for High Tech (18.5%, down from 18.9%) and Mining & Mining Services (35.8%, down from 47.6%). This is likely due to a slowdown of investments in emerging technology companies and changing online consumer behaviors in the post-pandemic environment. ![]() At the same time, both Emerging Tech and High Tech are also two of the few industries that are forecasting lower salary hikes as compared to 2022. However, it will take a while longer for companies to pick up pace given the broad impact of the inflation rate hike.”Īcross the industries surveyed, Emerging Tech is projecting the highest salary increase of 8.2%, followed by High Tech (6.9%) and Life Sciences (6.4%). This is also aligned with higher GDP growth expected in Indonesia this year. Some employers are also responding to the higher inflation rate. Across Asia, the overall average salary increases reflect a divergence in pay progression between emerging and developed economies, with estimates as high as 9.1% in India to 2.2% in Japan, the lowest in the region.Īstrid Suryapranata, Market Leader for Indonesia, said, “Salary increments are gradually returning to pre-pandemic norms as more organizations bounce back from the pandemic. Indonesia’s projected salary increment is above the Asia Pacific average of 4.8%. ![]() But while companies in Indonesia are generally showing signs of recovery, they have yet to return to pre-pandemic highs of 6.9% increments in 2019. Salary increments in Indonesia have been increasing steadily since they hit a low (5.5%) in 2021, at the height of the pandemic. The TRS surveyed 550 organizations across seven industries in Indonesia between April and June this year. It has said the hybrid model of working, coupled with TCS’ existing location-independent agile methodology, will help talent retain in value realisations for enterprises.Employees in Indonesia can look forward to an average 6.1% increase in their salaries next year, up from 5.8% this year, according to Mercer’s annual Total Remuneration Survey (TRS) 2022. He added that the company’s attrition has continued to moderate from the previous three consecutive quarters.Īpart from monetary measures, TCS is also offering workplace flexibility to retain talent. The quarterly promotions have been effective this month (July 2022) and also salary increases for those eligible in September 2022.” To recall, we announced moving to a quarterly promotion cycle which is very new, from when we were on the yearly cycle. To reduce the attrition rate and retain talent, Wipro CEO and MD Thierry Delaporte on Wednesday said during the post-Q1 results press conference: “Our talent investments I believe are paying off. On a year on year basis, HCL Tech attrition level has risen by 12 per cent from 11.8 per cent in Q1FY22 to 23.8 per cent in Q1FY23. HCL also posted a high attrition rate of 23.8 per cent, compared to the quarter ended March 2022, where the same was 21.9 per cent. Wipro had posted 23.8 per cent attrition rate in Q4FY22, which is the previous quarter. Wipro’s attrition rate stood high at 23.3 per cent in Q1FY23, which was meanwhile lower on a quarter on quarter basis. The attrition rate came in at 17.4 per cent in the quarter-ending March 2022. It was the highest attrition rate registered by the company in the last six quarters. For instance, IT major Wipro, which released its financial results for the June 2022 quarter on Wednesday, has announced to offer promotions to its employees every quarter starting July this year and also salary hikes from next month.Īpart from this, IT companies are also offering retention bonus, out-of-cycle wage revisions and salary hikes, which has been impacting their margins.ĭuring the June 2022 quarter, India’s largest IT services company TCS reported an attrition rate of 19.7 per cent on a last twelve-month basis. In order to retain the talent, the firms are taking various steps such as giving mid-term hikes and offering promotions. TCS, HCL, Wipro Attrition: Indian IT companies are grappling with high attrition rates.
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