Increment and Promotions: The recession in the IT sector has also affected the employees. Companies are neither keen on new hiring, nor have they given much increment or promotion to the employees this year.
Increment and Promotions: The fear of global recession in the IT sector has weighed heavily on the employees. Many big companies including Infosys have increased salaries and reduced the number of promotions this year. Bengaluru-based Infosys took the decision of salary increase and promotion quite late this year. But, the employees were disappointed because this year their salary has increased by less than 10 percent. While giving salary increase letters, Infosys has also thanked the employees for their support in difficult times.
No interest in making new hires
According to the report of Economic Times, many big IT companies of America and Europe have their headquarters in Bengaluru. In the IT sector, about 60 percent of the expenditure is on employees only. To handle this huge expense, IT companies have given low salary increases this year. Besides, the number of promotions has also been reduced. Recently many reports came which showed that this year IT companies are not even showing interest in making new hiring.
Salary of new employees not increased
This trend of recession has been going on for almost a year. However, companies are hopeful that the recession will be overcome in the next six months. But till then, the companies are taking precautions so that the situation does not worsen. This year, new employees have not been given salary increment.
Salary increase halved, promotions stopped
According to an IT employee, every year companies increase salary by about 20 percent. If someone gets promotion, his salary increases by 50 percent. Many promotions have been stopped this year. Also, those who got promotions were given only 10 to 20 percent salary hike.
Those who change jobs are also in loss
This year, companies gave only about 20 percent salary increase to those who changed jobs. Earlier this figure used to be up to 40 percent. In some cases, the salary was increased by 100 to 120 percent. In the year 2023, the situation will remain like that of 2007 to 2009. The IT sector was badly affected in these two years.
AI is also eating jobs
An HR manager of an IT company said that automation and Artificial Intelligence (AI) have caused loss of jobs. IT professionals are worried about this. No one knows when this bad phase will end. The demand for IT employees had increased a lot during the Corona epidemic. People also received gifts like expensive cars and bikes from companies. But now all this is like a dream.
