Infosys is reportedly gearing up to initiate a new performance appraisal cycle. As per an Economic Times report, the company is expected to kick off the appraisal process for the current fiscal year, even as employees await salary hikes for the previous performance cycle.
An email sent to managers at Infosys mentions the commencement of the ‘performance review cycle – October 2023’ with self-evaluations starting on September 29. The evaluation process is anticipated to conclude by the end of October, with individual employee ratings set to be communicated in the first week of December. This performance review will cover the period from October 2022 to September 2023.
Employees have reported that, despite the upcoming appraisal, they have not yet received salary hikes for the previous appraisal cycle, which ran from October 2021 to September 2022. It remains unclear whether the pending salary revisions will be integrated into the forthcoming cycle or handled separately.
Typically, Infosys conducts its evaluation period from October to September, with salary hikes usually disbursed in June or July of the following year.
During a recent earnings call after the first quarter, Infosys’ Chief Financial Officer, Nilanjan Roy, indicated that annual salary hikes were actively being considered. Infosys is set to announce its fiscal second-quarter results on October 12.
In the preceding quarter, Infosys introduced an average 80% quarterly variable pay scheme for its employees. Despite a nearly 11% increase in net profit and a 10% rise in revenue in the first quarter, Infosys fell short of analyst estimates and adjusted its revenue growth outlook for the fiscal year downward, citing spending cuts and client decision-making delays.
The company had initially projected revenue growth of 1.0-3.5% for the fiscal year, marking its slowest expansion in at least a decade. However, Infosys has been a frontrunner in securing large deals, including four valued between $450 million and $2 billion over the past four months, potentially prompting an upward revision in its annual guidance.