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Hexaware to cut pay, bench 350
March 04, 2009 15:06 IST
In a bid to control costs and further improve current utilisation, IT major, Hexaware Technologies [Get Quote], will soon introduce a salary reduction for employees above certain levels and also put 350 personnel, currently non-billable, on to a 'virtual bench.'
These steps have been taken in view of the current global macro-economic scenario, the company said in a press release issued on Wednesday.
The 350 personnel who will be put on to a 'virtual bench' will be retained in the organisation and given time-off to improve their skills and get re-trained in skills which are in demand, the company said.
"Hexaware will also organise re-skilling and training opportunities for these employees and will give them a compensation equivalent to 50 per cent of their basic salary," the release said.
These employees will continue to be on the pay-roll of the company and their service continuity would be protected, it said, adding they will continue to receive retirals and hospitalisation insurance and life-cover from the company.
A salary reduction between 2-10 per cent for employees above certain levels will be introduced, effective April.
The salary of employees at the entry-level to employees with around three years of off-shore experience will not be impacted while the senior-most employees will be subject to a higher per centage cut, the company said.
"As a result, the salaries of 40 per cent of the total employees will be unaffected. The implementation of this step will enable the company to further rationalise costs," the release said.
"While we strengthen our competencies and continue to work towards building a stronger revenue-stream, given the current market environment, we are also maintaining a significant focus on improving operational efficiencies, enhancing productivity, increasing utilisation and implementing multiple cost rationalisation initiatives," Hexaware's CEO and vice chairman, P R Chandrasekar, added.