• Fri. May 26th, 2023

What the CFO says about newcomers and their salaries


May 3, 2023

In February, Wipro downgraded the salaries already offered to candidates and asked them to join the lower pay.

In February, Wipro downgraded the salaries already offered to candidates and asked them to join the lower pay.

About 92% of on-campus hires chose to join Wipro at the lowest offer, says CFO Jatin Dalal

Months after IT major Wipro slashed candidate salary offers by 50%, its chief financial officer Jatin Dalal said more than 90% of freshmen accepted the pay cut and joined the company with a offer of lower compensation to speed up the onboarding process.

In a recent interview with HEY, Wipro chief financial officer Jatin Dalal said the company gave new hires a choice whether or not to accept the lower salary. “Next Generation Associates had both options, and 92% of on-campus hires chose to join at the lowest offer.”

In February, Wipro contacted the candidates to whom it had previously offered an offer of Rs 6.5 lakh per annum (LPA) and asked them if an offer of Rs 3.5 in annual remuneration would be acceptable to them instead. Wipro’s decision has been called “unfair” and “unacceptable” by the employee union NITES.

In an email, the company had also assured “early membership” for those who accepted the lower salary option.

Wipro Hiring Plans for 2023

At a post-earnings press conference last week, Saurabh Govil, Chairman and Chief Human Resources Officer, said: “The demand environment is active and we will continue to hire core demand. On stocks, we need to improve our uses. We need to look at the whole supply chain for hiring, going forward. As the business picks up and we see growth, we will continue to hire people.”

He added that in the last quarter, Wipro added about 5,000 employees, mostly engineers.

Regarding the decline in headcount in the fourth quarter of FY23, Thierry Delaporte, CEO and Managing Director of Wipro, said, “There is a danger in looking at headcount on a quarterly basis. Three or four quarters ago, we had a big increase in headcount and a drop in our utilization, impacting our margin… On a quarterly basis, you can’t see that impact. We will continue to hire. Also, the attrition is going down, we have to take that into account as well.”

Wipro’s voluntary attrition in the March 2023 quarter decreased by 330 basis points from the prior quarter, reaching 14.1% on an annualized quarterly basis and 19.2% on a year-over-year basis.

Last week, Wipro announced a net profit of Rs 3,074.5 crore for the March 2023 quarter, almost the same as the Rs 3,087.3 crore posted in the corresponding period last year. Its operating revenue from January to March 2023, however, increased by 11.17% to Rs 23,190.3 crore from Rs 20,860 crore a year ago. The net profit is attributable to the shareholders of the company.

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