TechM Sus­pends Ap­praisal Cy­cle for Se­nior Em­ploy­ees

Co says af­fected staff would be told about hikes af­ter mgmt re­view

The Economic Times - - Companies: Pursuit Of Profit -

Jochelle Men­donca & Neha Alawadhi

Ben­galuru | New Delhi: Tech Mahin­dra has sus­pended the ap­praisal cy­cle for em­ploy­ees with more than six years of ex­pe­ri­ence pend­ing a man­age­ment re­view, as the IT in­dus­try grap­ples with deep changes to the way it does busi­ness. Tech Mahin­dra made the an­nounce­ment on a we­bi­nar on Fri­day chaired by its chief op­er­at­ing of­fi­cer L Ravichan­dran, three Tech Mahin­dra em­ploy­ees told ET. The af­fected em­ploy­ees — who are typ­i­cally team lead­ers and above — will have to wait at least two quar­ters be­fore they are told if they should ex­pect a wage in­crease.

“We thought the wage in­cre- ases would be very bad, but we did not ex­pect this. At least there are no large scale lay­offs so far. That was also a worry,” a Tech Mahin­dra em­ployee, who was on the we­bi­nar, told ET.

Another em­ployee said peo­ple were ag­i­tated about the move and that in­ter­nal mes­sag­ing groups were flooded with dis­cus­sions about the an­nounce­ment. TechM con­firmed the move, but said the ap­praisals had not been post­poned in­def­i­nitely and that the af­fected em­ploy­ees would be in­formed about their hikes af­ter a man­age­ment re­view.

“This de­ci­sion is not re­lated to our per­for­mance in the third quar­ter. This was a item of dis­cus­sion and once there is a man­age­ment re­view the em­ploy­ees will be in­formed,” a TechM spokesper­son said.

Other em­ploy­ees will get their com­pen­sa­tion re­vi­sion let­ter in March, but their new salaries will only be­come ef­fec­tive in July.

In­dian IT firms are be­gin­ning to take a sec­ond look at their ex­ist­ing cost struc­tures.

An­a­lysts have said that TechM is in­creas­ing its fresher in­take to man­age its pyra­mid and boost its mar­gin.

“In­dian IT has a prob­lem be­cause their pyra­mid is more bulky than it was in the mid­dle. You don’t want the fresh­ers to leave be­cause you have in­vested in their train­ing, but if you can cre­ate a sit­u­a­tion in which more se­nior em­ploy­ees start look­ing to leave then it works in your favour,” an in­dus­try ex­ec­u­tive told ET.

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