The move was aimed at checking attrition as the IT industry has seen a higher number of junior staffers leaving their employers in the past quarters. “Junior-level attrition is slightly higher than the company average. However, it is lower among performers as they get higher bonuses, incentives and salary hikes,” said Govil.
According to the company, in the next phase of promotion, while employees at L1 level would go to L2; L2 would be promoted to L3. IT firms categorise staffers into various levels starting from L1 (junior most level) onwards.
In the quarter ended September, Wipro's attrition rate stood at 17 per cent, which was 60 basis points (bps) lower than the previous quarter. As compared to Wipro, Infosys reported 170 bps fall in attrition on sequential basis to 21.7 per cent. During this period, Tata Consultancy Services (TCS) reported a marginal rise of its attrition rate to 11.6 per cent as compared to 11.5 per cent in Q1 of FY20.
In anticipation of demand, Indian IT firms have been hiring aggressively for the last three quarters. After adding around 6,000 fresh graduates in the first quarter, Wipro hired another 3,000 graduates during the second quarter.
"We want to be (stay) prepared. That's the reason we are building up a huge cadre and are preparing for the demand through training and re-skilling our people well. These initiatives should reflect on our revenue in the next two-three quarters," Govil said. He also said that the IT firm was reducing its dependence on sub-contractors by building up an employee pyramid on key onsite locations. According to the company, around 68 per cent of its employees in the US are locals.
Apart from scaling up its delivery capabilities, Wipro is eyeing more consulting-led sales growth in coming quarters and hiring more consultants to improve its cross-selling opportunities. "We are hiring more people in this consulting space. Today, it's (one of our) big investment areas and it is paying us back well," Govil said.