HCL Tech, one of India’s leading IT services companies, will implement salary hikes for junior employees starting October 2024, following a quarter’s delay. Around 90% of its workforce will benefit from the pay revision, while mid- and senior-level management will not receive raises in FY24 due to current economic conditions. This decision aligns with broader industry trends, where companies are balancing employee compensation with macroeconomic challenges.
According to Ramachandran Sundararajan, HCLTech’s Chief People Officer, the company is also committed to delivering quarterly variable pay to employees. Approximately 85% of their targeted variable pay will be distributed to most staff. This payout reflects efforts to maintain competitiveness while addressing global financial uncertainties.
Despite challenging times, HCLTech remains optimistic about its talent strategy. The company aims to onboard 10,000 freshers this year, enhancing its workforce and positioning itself for growth.
HCLTech’s decision comes as a response to the challenging business environment in the tech sector. The company has adjusted its revenue projections due to a slowdown in discretionary spending by clients. Many firms, including HCL, are witnessing this trend, which is contributing to conservative growth expectations. Nevertheless, HCLTech’s focus on compensating employees and attracting fresh talent highlights its commitment to long-term sustainability and growth.
In this context, the pay hikes are part of a larger strategy aimed at ensuring employee retention, attracting new talent, and weathering economic pressures while staying competitive in the global IT market.
Focus on Hiring Freshers
Apart from pay hikes, HCL Tech has emphasized its plans to hire 10,000 freshers this year. As part of its growth strategy, the company continues to invest in talent development and onboarding new employees to build a future-ready workforce. The emphasis on fresh talent also aligns with industry-wide practices aimed at hiring young professionals to bring in new perspectives and energy to the organization.
Balancing Employee Interests and Economic Realities
Despite the pay hikes, HCL Tech has made a calculated move to limit salary increments for its senior management, ensuring that financial resources are optimally allocated. This cautious approach underlines the company’s focus on sustainable growth amid economic volatility. For junior employees, the salary revision offers relief and support as they navigate a challenging global market. By implementing a tailored compensation strategy, HCLTech aims to keep its workforce motivated while also managing its financial health.
HCLTech’s salary hikes and hiring plans are a testament to the company’s commitment to adapting to industry trends and prioritizing employee welfare, even during tough times. These moves will likely contribute to the company’s long-term stability and its ability to stay competitive in the ever-evolving IT services landscape.
