Good news for beginners! HCL increases salary packages for freshmen

New Delhi: After two years of the Covid-19 pandemic, things finally seem to be getting back on track and even more so for beginners! How? Well, the answer is higher compensation packages. IT company based in Noida HCL Technologies has increased the salary of freshmen from Rs 3.5 lakh per year to Rs 4.25 lakh per year.

Along with this, the computer science major also introduced comprehensive increase plans for the entry level in the previous fiscal year (FY22), according to their HR manager VV Apparao.

“Wherever skills are scarce, we are raising grades. If you look at new talent, today we are now paying Rs 4.25 lakh per year to graduates,” Apparao told Economic Times. The company’s changes to the salary package and assessment plans are aimed at attracting more talent and tackling an acute problem of attrition.

The wage hike could be announced in July.

With a focus now on retention and fresher growth through its system, it will take HCL a few more quarters before the attrition rate declines from current levels of 20%. The country’s third-largest software service provider by revenue is now also expanding its base in smaller cities and overseas to see its talent base swell.

HCL’s plans for freshmen

As part of its plan to increase the fresher base, HCL even talks to the educational institutions where they select these children and asks the educational institutions to bring it into the program so that they complete and join them at Rs 6 lakh per year, Apparao shared.

This FY22 package increase comes on top of HCL’s existing scheme which allows freshmen to earn additional certifications to increase their earnings to Rs 6 lakh per year.

Meanwhile, HCL Technician announced an operating margin of 18% for the quarter ended March 31 and 18.9% for the full year, which were at the lower end of estimates due to higher personnel costs and a seasonal decline in its products and platforms (P&P).

New hires at HCL

In FY22, the IT company exceeded its more recent hiring forecast (20,000-22,000) and welcomed 23,000 hires. For the current year, HCL has planned nearly 34,000 new recruits. Of the total employee base of 208,877, HCL’s fresher contribution is approximately 11%.

That’s far less than the fresher intakes of competitors like CDS and Infosys at 16% and 27,208,877 new entrants respectively, as a share of their overall employee base in FY22.

“Last year, we already rolled out increments, set newer pay grids, and corrected the same for the previous five batches. In addition, we also rolled out some retention pools. Therefore, I don’t see that ‘there would be a need for nothing more than what we gave as a raise last year because it was not a standalone raise,’ Apparao said.