Though Infosys has managed to hire Vishal Sikka as its CEO, the company still has a huge task cut out for itself as it stares at an employee attrition rate of 19.5% for the June quarter. The company saw attrition rate of 18.7% in March and 18.1% in December quarter.
"Employee attrition rates are worrisome and we are implementing various initiatives to retain good talent," said Pravin Rao, COO, Infosys. Infosys made a gross addition of 11,506 employees during the quarter, taking its total strength to 161,284 employees as on June 30.
CEO S D Shibulal said the company is taking into account concerns of employees and focusing not just on compensation.
"We have tried hard to listen to our employees. The concern was not so much about compensation but about predictability, career growth, variable compensation. Employees were not happy with the high percentage of variable pay which we have now brought down," said Shibulal.
He said the company has done everything as scheduled in the last six-seven months. "We have done quarterly promotions. In fact, this quarter we have promoted 7,500 people. Promotion is a reflection of growth. Our growth created opportunities for our people to go up in the career track," he said.
Experts said though much has been said about high attrition rate, the management has been taking corrective measures to solve the problem. "It is important to remember that there is no magic wand to solve issues and it can take two-three quarters before this can be normalised," said Sanchit Gogia, chief analyst & CEO, Greyhound Research.
Many feel the high attrition rate might come down after Vishal Sikka, who is a brand in himself, has joining the company. "There is a renewed interest and confidence in Infosys now. Young people look up to Sikka given that he was a major force behind SAP Hana," said an HR expert.
The company's utilisation including trainees is 74.8%, and excluding trainees is 80.8%. This year the company has rolled out 22,000 campus offers, however, not all have been absorbed so far.