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Private telecom companies such as Bharti Airtel and Vodafone Idea have rewarded their employees with 7-8 per cent salary increments for the financial year 2023 (FY23), The Economic Times (ET) has reported. This is in addition to up to 110 per cent bonus these companies have doled out to their employees as they compete to retain and acquire top talent in the industry.
The market leader, Reliance Jio, has not announced the increments and bonuses so far, the report said, citing people aware of the development.
Quoting an industry executive, the report said that both Airtel and Vodafone have rewarded their employees with 7-8 per cent salary hikes this year. Airtel gave bonuses up to 110 per cent, and Vodafone Idea, on the other hand, gave bonuses going up to 100 per cent, the executive said.
However, the salary hikes this year are lower than expected. Industry experts estimated the increments to be in the range of 10-12 per cent.
Explaining the reasons behind the lower increments in the telecom sector, Chief Executive at NLB Services, Sachin Alug, told ET, "The low rate of increments is mainly attributable to telecom players majorly taking the recovery route to their pre-pandemic levels."
The global economic outlook and the cautious approach in the industry are also responsible for the unexciting hikes.
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The situation is particularly tricky for Vodafone Idea as the telco is trying to walk the tightrope of balancing between being cautious with its compensation while also being generous enough to retain its employees.
Kartik Narayan of Teamlease said that telcos are offering incentives, bonuses up to 100 per cent and hikes based on inflation numbers to keep their talent motivated, the ET report said.
