Wipro said its average salary increment would be as per industry standards but that top performers would get 2-3 times more than the average performer, better than what it was last year. The company gives increments effective June 1.
It said the budget allocation for increments is higher this year compared to the last.
"We have to make some sharp differentiation based on performance, potential and skills. Digital skills of analytics and big data will be important. We are focusing very clearly on the right people and right investments to move ahead," Saurabh Govil, global HR head, told TOI.
During the earnings call, CFO Jatin Dalal said the salary impact on the margins in quarter one would be larger this year than what it has been in the past, "because we do want to invest in rewarding high performers a little more than what we have done traditionally."
The company, which trained about 10,000 employees in various aspects of digital, said it is looking at other areas to train its staff. Automation is another buzz word today, and is being rapidly adopted. "We plan to release 4,500 people due to automation. But that does not mean they are being fired. Since a lot of work at the bottom of the pyramid is getting automated, we plan to reskill them for higher end jobs," Govil said.
As part of its effort to improve delivery and sell more digital skills, Wipro is creating a continuum between its delivery and sales teams. The programme, named Prism, grooms delivery people to become effective sales people. "In our business, if they understand how to deliver they will be able to sell better," Govil said.
Wipro's quarterly annualized voluntary attrition dropped to 14.9%, from 16.3% in the December quarter, its lowest in 11 quarters. It added 2,248 people during the fourth quarter and employed 172,912 people as of March 31.
Most of the additions came from the four acquisitions made during the last fiscal, signalling that fresh hiring has considerably come down. This is because of the low growth and the releases that have happened due to automation and utilization.
Wipro has done away with the bell curve based appraisal system and has introduced quarterly performance based compensation (QPLC) across the company from this month. As part of the programme, managers have to take ownership and development of their subordinates and ensure regular feedback.
"The 20% variable pay-out every quarter is dependent on how the manager feels about his or her employee. The managers will be given a pool of money at the time of appraisal and they have to differentiate based on performance. The focus of the managers will be to ensure the improvement of his/her employees," Govil said.