Wipro rolls out 5-year salary plans for campus recruits

Bombay : India’s fourth-largest IT services company, Wipro, has introduced a five-year entry-level plan detailing their salary structure, including annual raises and bonuses to ensure new hires know what to expect expect. It also tries to identify moonlighters, cross-check employee provident fund details, and engage with startups to weed them out.

“We have communicated a very clear five-year plan from a career and compensation perspective. In the communication in the offer letters, we said how their salary will evolve over the next five years. They are given a lot of guarantees about what will happen, including the deferred bonus on top of the increases that will take place,” Saurabh Govil, Wipro’s chief human resources officer, said in an interview.

Campus hires represent the largest group of new hires for most IT companies. Wipro hired approximately 15,000 people in the first half of this fiscal year. Approximately 85% of its employees received 100% of the variable component of compensation.

Wipro’s retention strategy was rolled out after a talent war erupted as companies went on a hiring spree to meet the demand for scanning operations for businesses across all industries. Wipro said it would honor all offers it has made so far, but would onboard applicants in phases.

Govil said the drop in attrition in the third quarter was due to the changing macro environment. He estimates that attrition hovers around 20% as the gap between talent demand and supply narrows. “The market also played a role The gap between talent supply and demand is reaching a plateau. Candidates are no longer carriers of six offers, nor do they demand an exorbitant bonus on their remuneration. Startups are seeing less cash and they’re not hiring in huge numbers.“

Wipro had a 23% churn rate (LTM) or a 30 bps “moderation” from April to June).

Tata Consultancy Services saw an increase in Q2 attrition to 21.5% from 19.7% in Q1 and HCL was flat at 23.8%.

Wipro cracks the whip on undeclared workers. “It’s ongoing and we’re taking action against them,” Govil said. The company uses different tools to track them. “A lot of technologies are available. There are startups exploring employees and what they do.”

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