According to an internal document, Wipro may forego awarding raises to "top performers with higher compensation" in its major business line in the upcoming round of salary modifications in December. The move comes at a time when the company is coping with a slew of issues, including low customer spending and stiff competition from larger rivals.
According to Reuters, "We are doing a selective MSI (merit salary increases) rollout based on our business affordability," Nagendra Bandaru, managing partner and president of the "Enterprise Futuring" business line, informed workers in an email. Wipro would prioritize employees with lesser pay among those eligible for a rise, according to Bandaru, adding that "top performers with higher pay may not be covered in this cycle."
Employees will receive their raises on December 1. Wipro Enterprise Futuring, one of four global business lines launched by the Bengaluru-based company in April as part of an organizational reorganization, focuses on large-scale digital and technical transformation for enterprises. In recent quarters, India's USD 245 billion information technology industry has struggled as clients cut back on discretionary spending due to inflationary pressures and global economic concerns.
Salary costs are the most significant contributor to IT company expenses, accounting for more than 60% of total expenses. Wipro said earlier this week that all of its employees worldwide will be required to work from the office at least three times each week beginning this month. Companies have started reversing or changing their "remote work" practices as Covid-19 pandemic-related limitations have been lifted for a variety of reasons, including improved worker communication and collaboration.
Last week, Infosys requested some staff to return to work 10 days per month, while industry leader TCS asked employees to work five days per week. Since May, Wipro has encouraged workers to work from home three times a week, with approximately 55% of the workforce currently doing so, according to a company spokesperson. As of September 30, Wipro has 244,707 employees.