Infosys has been beaten up over the last year, with many saying the Indian IT juggernaut was too slow, losing clients and key talent to competitors around the world. Now the company’s billion dollar chairman, N. R. Narayana Murthy, wants to throw money at the problem.
Only the problem in his view, one of them at least, is retention. And one way to keep the company’s roughly 150,000 employees happy is to give them a raise.
Several senior executives have left the Bangalore-based company in recent months, making it important for Infy — as it is known — to keep staffers by offering higher salaries.
The Economic Times reported on Monday that an anonymous source said hikes were coming soon and could be as high as 12%.
Infosys usually announces pay increases in June. Last year, Infosys raised salaries for staff in India by 8% on average, shortly after founder Murthy returned to lead the company. Since then, Iny’s share price has bounced back, though it is still the worst performer out of the three major Indian IT firms. Still, long term investors should be happy with the company’s growth. Share prices are up over 33% in the last 12 months, with last year’s return on average equity of 24.8%. Last year’s net profit margin was a little over 23%.
via To Avoid Brain Drain, India’s Infy Considers Throwing Money At Staff – Forbes.
To Avoid Brain Drain, India"s Infoysis Considers Throwing Money At Staff
