Infosys has announced 100 per cent variable bonus payout for employees for the December quarter in a bid to contain rising attrition.
"We have made 100% variable payout for Q3 and have seen a further decline in attrition as a result of multiple initiatives taken over the last few quarters," said Infosys chief operating officer UB Pravin Rao.
Annualized attrition at Infosys - India's second largest outsourcer - inched up to 20.4 per cent in the three months to December 31, 2014 from 20.1 per cent in the previous quarter. Infosys' rival and India's biggest outsourcer Tata Consultancy Services had reported an attrition of 10.9 per cent in the September quarter.
Infosys management, however, said the company has seen a drop in attrition in absolute terms.
"In Q3, we saw attrition of about 8,900 from about 10,100 in Q2 and 10,600 in Q1. We are seeing continued drop in attrition which we continue to monitor and continue to be excited about as we look to the future," said Vishal Sikka, CEO of Infosys.
Infosys CFO Rajiv Bansal said attrition is down 3 per cent on a quarter-on-quarter basis. "Our initiatives are paying off and we are in the right direction," he added.
Infosys is battling record-high attrition, which led to nearly one in five employees quitting the company in the previous fiscal year. A number of senior-level executives have also quit Infosys over the last couple of years; these resignations were linked to the battle for CEO post. Dr Sikka, who took charge of Infosys in August 2014, is the first non-founder CEO of the IT major.
To check rising attrition, Infosys announced out-of-turn promotions and restricted stock units in the past. In the December quarter, Infosys started training more employees in areas such as design thinking and artificial intelligence. (Read the story)
"We have covered over 9,000 employees across the company with design thinking training; more than 400 of these are at senior levels," Dr Sikka said.
(Also Read: Vishal Sikka Begins With a Bang)
The company has also partnered with Stanford Global School of Business for an executive education program.
"This initiative will include 200 executives, each of whom will participate in a part-time, year-long program over three years," he added.
Infosys added a total number of 13,154 employees (gross) and 4,227 (net) during the December quarter, taking its total headcount to 1,69,638 at the end of December 31, 2014.
(With agency inputs)