homeinformation technology NewsAttrition could stay at current levels; efforts being made to attract employees: Happiest Minds
Attrition could stay at current levels; efforts being made to attract employees: Happiest Minds
In an interview with CNBC-TV18, Joseph Anantharaju, Executive VC & CEO-Product Engineering Services, and Venkatraman Narayanan, MD & CFO, Happiest Minds, discussed how attrition could play out in the coming quarters and what steps the firm is taking to combat it. The management of the IT firm also mentioned that they may be able to surpass 31-32 percent levels in terms of revenue growth.
Attrition is an issue that has been experienced across sectors, however, it has been especially worrisome for the information technology space. In an interview with CNBC-TV18, Joseph Anantharaju, Executive VC & CEO-Product Engineering Services, and Venkatraman Narayanan, MD & CFO, Happiest Minds, discussed how attrition could play out and what steps the firm is taking to combat it.
Anantharaju confirmed that the company is taking measures to deal with attrition. He explained that the company has increased the level of engagement, which involves training and development to attract employees. He believes these measures should bear fruit and attrition could stay at the current level for some quarters or even trend a little lower.
He said, “We expect the number to trend down a bit. We have taken a few measures and we have the upcoming increments that people are looking forward to, and we have also increased the level of engagement and learning and development training to attract people.”
On the company’s revenue growth guidance of 20 percent, Narayanan clarified that it is for a short period of time spanning five years. He expects the revenue growth range to be around 32 percent or even higher in FY22.
On margin, Narayanan said that the company has been outperforming its guidance of 22-24 percent. However, wage pressures owing to attrition and fresh recruitment at higher pay levels are adding some cost pressure, he said. He added that the talks with customers on pricing are underway.
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He said, “We have been consistently outperforming the number that we have been laying out. We have been saying that we will have a steady kind of margin- it would be in the range of 22-24 percent. But over the last four quarters, we have been doing 26 percent, but the expectation is to at least maintain a steady margin of 24-25 percent and we are working towards that.”
For the entire interview, watch the accompanying video
(Edited by : Dipikka Ghosh)
First Published: Mar 22, 2022 12:56 PM IST
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