Topic > Indian Multinational Company: Infosys the third...

IntroductionInfosys is the third largest Indian multinational company providing information technology, business consultancy, software engineering and outsourcing services. Infosys was founded in 1981 by Seven Software engineer with a capital of Rs.10000, becoming the most renowned company with 160405 employees, earning billions in revenue, assets and net worth in the three decades of glory. Despite continued success, Infosys suffers from a lack of employee retention and therefore high employee turnover, never at 18.7%. Infosys is undoubtedly one of the most respected IT companies in India and shows remarkable results in terms of revenue and revenue every year. No Indian IT company has demonstrated better “job security” than Infosys. Struggling to retain the best “senior leaders” and talent at “middle and junior levels” Senior executive leaders, who held the rank of AVP or above, have left the company in large numbers (At least 50.) (International Business Times, 2014)With 1823 people leaving the company in the October-December quarter, and the same trend led to an churn rate of 18%, the highest for the company. (NDTV, 2014) Infosys focuses on campus hiring – Does it really work? Infosys has announced to hire 22,000 graduates through campus hiring in the current fiscal year and the rate of new hires is higher than last year. The repeated mistake made by Infosys is to hire more students every year to balance attrition. As a student, without any question of compensation and benefits, it is a great opportunity to start your career with a big brand like Infosys. The student acquires comprehensive knowledge, which flows from “classroom training” to “practical work at desk level”, begins to compare r...... middle of paper ...... different skills, and experiment a rapid sense of progress. During the intrinsic reward process, the employee will produce workable solutions, which often represent a significant turning point in the organization's culture. (Kenneth Thomas, 2009) Gain Sharing It is a formula-based group incentive plan in which employees share in an organization's financial gain from improving its performance. Gain sharing drives a percentage of employees to motivate commitment and also helps develop respect and responsibility towards the company. During 2011 Infosys celebrated 30 years of success and reaped huge profits; each employee was rewarded with 5 company shares and additional shares based on years of employment with Infosys. And there was a notable drop in attrition from 17% to 14.7%, which proves the company's logic. (James Gibson et al., 2011)