Wipro to give 85% employees 100% variable pay in Q2

Thierry Delaporte, CEO and Managing Director of IT services firm Wipro Limited on Wednesday said the company will pay out 100 per cent of variable pay to 85 per cent of its employees for the second quarter of financial year 2023.

Speaking at a press meet following the second quarter results, he said the company has promoted more than 10,000 employees and increased salaries across bands.

On the matter of attrition, he said attrition continues to moderate for the third quarter in a raw. “In Q2, attrition was down to 23 per cent on the trailing 12 months basis. Our quarterly annualized numbers are trailing even lower than that. We are pleased to report that we recorded a third consecutive quarter of moderation in attrition. We expect further moderation in Q3,” he said. While attrition rate rose 2.5 per on a year-on-year basis, it fell 0.3 per cent on a quarter-on-quarter basis. The rate was 23.30 per cent in the April to June quarter of FY 2022-23.

“We have seen a steady reduction of attrition quarter after quarter. I believe that step-by-step we have learned about how to adjust to a new world where some people are working from home and some are working from office. I think we have really done a good job to connect and engage more (with employees) to get a sense of being part of a group,” Saurabh Govil is the Chief Human Resources Officer at Wipro, said.

“Our focus on freshers, how we have oboarded, engaged and showed them a carrier path for the next five years from a carrier and financial standpoint, has also helped us to achieve three quarters of moderation and what we will see in Q3 will be a further moderation in contractual attrition,” he added.

The company said it oboarded about 14,000 freshers in the first six months of the calendar year, which is about 72 per cent of what it added in the whole of last year.

Wipro on Wednesday reported a 9.27 per cent year-on-year (YoY) drop in net profit at Rs 2,659 crore in September quarter compared with Rs 2,930.70 crore in the corresponding quarter last year. Revenues for the quarter rose 14.60 per cent YoY to Rs 22,539.70 crore from Rs 19,667.40 crore in the same quarter last year, the IT firm said in an exchange filing. Dollar revenues for the IT Services stood at $2,797.70 million, up 2.3 per cent sequentially. Revenue growth in constant currency (CC) terms stood at 4.1 per cent sequentially.

Also read: Wipro Q2 results: Net profit drops 9% to Rs 2,659 crore

Also read: Wipro's attrition rate rises by 2.5% YoY, adds 605 new employees