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Infosys brings back stock option plan to check rising attrition rate

Infosys brings back stock option plan to check rising attrition rate

Infosys brings back stock option plan to check rising attrition rate BENGALURU: Infosys has relaunched its employee stock option plan (ESOP) for junior to middle level management staff as it looks to rein in rising attrition that stood at 21 per cent in the April-June 2016 quarter.

However, the company is not “unduly concerned” about the jump in attrition, which read 17.3 per cent in the March quarter and 19.2 per cent in the year-ago period.

“Today, we relaunched our ESOP programme after a gap of 10-years plus, after about 13 years.

We are rewarding about 7,500 of our employees from junior to middle level management with restricted stock options and we will extend it to middle management to senior leaders and title holders subsequently,” Infosys Chief Operating Officer UB Pravin Rao said.

He added that the company continues to focus on reskilling employees and has also revamped its leadership development programmes.

ESOPs allow employees to own equity in the company, which is seen as a morale boost ..

“We are really encouraged, we also track high performers’ attrition, which has come down. Earlier last quarter, it was 13.4 per cent and this quarter, it has come down to 11.2 per cent, so we are encouraged by that,” he said.

Rao said Infosys will “watch out”, but at this stage, it is “not unduly concerned” and continues to focus on employee experience and engagement.

This year, Infosys has given wage hikes of 6-12 per cent to its employees in India and about 2 per cent ..

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