One of the largest IT consulting and outsourcing company, Capgemini, has received major backlash, after it announced its increment structure on 28th April, according to recent reports.
Spread over 40 countries, Capgemini has 200,000 employees with 100,000 alone in India and the revised structure has been not taken down well by any of them. The recent increment that has been as low as 0.5 to 0% has triggered a flare-up among employees. As a result, employees have resorted to Social media to express their dissatisfaction. Twitter has been bustling with tweets wherein angry employees are ridiculing the recent salary hike. Employees of Capgemini are running a campaign #CapgeminiBetraysEmployees showing utter disappointment with the sparse increment. Employees claim that the company has achieved consolidated revenues of €3,153 million in Q1 2018, the growth of 7.2% YoY at constant exchange rates. A profit of that degree doesn’t explain such meagre hike and employees have been furious about the same.
There have been numerous deductions as a result of the recent change in Increment structure. Some people took a recourse to Twitter posting furious tweets, and this certainly garnered more attention from tech fraternity as well as the general audience. Few employees even denominated this to be a “voluntary employee attrition” strategy.
The Discontented Camaraderie of Techies
Capgemini isn’t the only one to be in the discontented camaraderie. Sharing the woes with Capgemini, TCS also took to social media to express its disappointment with the flat base salary. Last week, few employees from TCS professed their unhappiness on it’s Facebook page, namely “TCS Confessions” as the company offered 100% variable pay to many employees.
Frenzied Out-pour; Result of Employee Dissatisfaction
There have been several furious tweets questioning and debating about marginal hikes on fixed pay. Employees have compared their income with that of the invested amount as well. Employees have claimed that the company doesn’t flinch while making huge payouts, but herein the employee’s hikes are being compromised which, as a matter of fact, shouldn’t be the case. Tweets also allege that these profits are just guided over to the top leaving the employees dry. Through various reports, employees have claimed that there are variations in the quarterly bonuses. The blunt truth is employees at lower levels either don’t get plugged with bonus pool or their bonuses are way too low. One tweet on the social media site said – “Come to India and you will see Capgemini employees running tea stalls too. As the annual hike for the employees is 0.” Employees have questioned the work ethics and employee satisfaction policies of the company.
Responding To The Backlash – Capgemini says:
Our employee remuneration is defined in an objective process, consistent with industry norms, to ensure we are aligned with our customer needs, business priorities, and the overall industry evolution. Annual increments are determined by individual performance and potential, and the strategic business goals of the company
Financial Dismal Or IT Slowdown?
It’s rather disheartening for employees of IT Industry across the country to be handed out with single digit hike.
Low hikes have always been a last resort to compensate for financial distress. But, shedding light upon the major transformation here, we have to address Digitization. The advent towards a digital outlook in different sectors has been majorly responsible for the slowdown of IT Sectors. Due to this transformation, analysts suggest that there is an urgent need to cater to digital revenues by the company and hence, the company doesn’t focus much on providing a proper hike to its employees.
