Wipro HR, 92% Freshers Chose To Join at Lower Salary

Wipro, the renowned IT conglomerate, has been facing the brunt of the ongoing economic downturn, resulting in a series of cost-cutting measures that have included laying off hundreds of junior staff and deferring onboarding for 2022 recruits.

Recently, the company has started offering lower salary packages to its incoming freshmen due to the worsening macroeconomic conditions that have affected the global market. Reliable sources suggest that Wipro has been communicating with candidates, seeking their approval for a reduced compensation package compared to the initial offer.

Surprisingly, a whopping 92% of the new campus recruits have consented to this proposal, despite the lower remuneration. As per reports, candidates who were initially promised an annual salary of Rs 6.5, lakhs are now being approached with an offer of Rs 3.5 lakhs per annum to work for the company. 

In an effort to streamline their onboarding process, the incoming class of students opted to accept the employment offer extended by the company. The offer allowed them to commence working for the business as early as March. Wipro, on the other hand, has made the decision to postpone the hiring of new employees for the 2022 cohort, citing concerns around economic uncertainty, margin challenges, and a potential recession on the horizon.

On February 16, candidates who had been awaiting their onboarding and offered an annual salary of Rs 6.5 lakh were notified via email that Wipro, like other companies, evaluates global economic conditions and client needs to inform their hiring strategies. In order to expedite the onboarding process, 92% of the incoming students chose to accept the company’s lower-paying offer. 

During the placement drives, Wipro presented two different pathways for new applicants: Elite and Turbo. These two initiatives are Wipro’s distinct hiring programs. For those who qualify for the Elite program, the annual salary offered is Rs. 3.5 lakhs, whereas Turbo employees receive a more lucrative package worth Rs. 6.5 lakhs annually. If applicants are selected for the Elite position and successfully complete the upskilling phase of the ‘Velocity’ training program, they may be promoted to the Turbo position.

However, it is important to note that Wipro cannot guarantee a specific joining date for candidates who aspire to participate in the Turbo program. As a result of this email communication, many candidates and newcomers expressed their frustration with the situation, stating that they had accepted an offer of Rs. 3.5 lakhs, despite the disappointment in not being selected for the Turbo program. 

As per recent reports, Wipro has given employees enrolled in the Turbo program the opportunity to switch to the Elite program as of February 20, 2023. The company sent an email to notify candidates that if they accept the offer, they will be hired in March 2023. Even after accepting the offer, the candidates will have the option to stick with the higher-paying Turbo program if they so choose.

Additionally, candidates may also decline the offer and maintain their original position. However, Wipro has made it clear that a start date cannot be provided due to uncertainty surrounding the current economic environment and evolving customer needs. Furthermore, Wipro claims to be offering additional “unique” benefits in addition to Topcoder training, which has reportedly contributed to a decrease in attrition rates.

In February, the Pune-headquartered employee union called the Nascent Information Technology Employees Senate filed a complaint with the federal labour ministry, alleging that the company engaged in unethical practices by reducing pay offers for more than 4,000 candidates.

As per a representative of Wipro, the organization has made modifications to its hiring policies in light of the prevailing economic conditions and overall business environment. The recent termination of 454 fresh recruits at Wipro due to inadequate performance has been a topic of discussion in the news.

These inexperienced hires were reportedly dismissed because of their subpar performance, even after being trained, without ever having been properly employed. In the previous financial year, Wipro brought on board an unprecedented number of 22,000 novice employees. It remains to be seen whether the company will maintain this level of recruitment in the upcoming fiscal year, as it will depend on market demand.

In relation to the overall demand, Dalal stated that the IT industry is presently undergoing a brief phase of adaptation, during which customers are prioritizing their expenditures and holding back on discretionary purchases. A vast majority of the candidates, who expressed interest in beginning employment, opted to accept positions in the lowest pay grade. A few individuals chose to wait, with the understanding that they would receive a salary of Rs 6.5 lakh upon being hired.

Our approach has been transparent and equitable; no employee’s compensation has been reduced. Unfortunately, this was misreported in some instances. Assessments have been standard practice for many years, serving to train and reinvest in individuals during the period between graduation and employment. It is unclear why this has become an issue.

Edited By, Naveenika Chauhan