TechM Suspends Appraisal Cycle for Senior Employees
Co says affected staff would be told about hikes after mgmt review
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.