Infosys is poised to begin a new appraisal cycle this week for the current fiscal year. The move comes even after four employees of Infosys iinforming that they are still waiting for raises from the previous performance cycle.
According to an email addressed to managers, the second-largest exporter of IT in the nation will begin its "performance review cycle-October 2023" with self-evaluation on September 29. Manager evaluation will take place by the end of October, and individual employee ratings will be shared with them in the first week of December, according to a report by ET.
The evaluation is for employee performance between October 2022 and September 2023.
While fresh appraisal is being planned, a few employees did not receive any hikes for the previous appraisal cycle (October 2021 to September 2022), two employees informed. Moreover, there is no clarity if the pending hikes will be clubbed with the upcoming appraisals or if it will be skipped.
The employees said that they need to update their self-evaluation and accomplishments soon. They added that the appraisal process took place last year as well. Ratings were also disclosed but the hike has not been released yet. It is usually paid in June-July, according to the two employees.
During the earnings conference after the first quarter, chief financial officer Nilanjan Roy said that rolling out annual hikes was under “active consideration.”
The worldwide macroeconomic downturn that affected technology spending put the Indian IT sector under pressure.
Bengaluru-based Infosys is rumored to have stopped compensation increases throughout the pandemic year of 2020 in order to save money, but had implemented raises in January 2021.
According to Wipro's departing CFO Jatin Dalal, raises for FY23 are being postponed by a quarter and will be paid in the quarter that concluded in December.
However, the market leader Tata Consultancy Services had previously announced yearly raises for FY23, which went into effect this April. The average raise will be 6-8 per cent, with 12- 15 per cent going to "exceptional" achievers.
Infosys introduced an average quarterly variable compensation of 80 per cent for its employees last month for the first quarter that concluded in June.