HCLTech hired 1,800 freshers in 1Q24, expects higher intake in Q2

HCLTech hired 1,800 freshers in the first quarter of 2024 (Q1 2024) despite its overall headcount declining by 2,500 during the quarter, according to the IT service firm’s chief executive.

“In terms of people, our net headcount reduced approximately by 2,500 people during the quarter, while we added 1,800 freshers in line with our plan. Our headcount has reduced primarily due to the fact that we’ve consciously not backfilled some of our attrition,” said C. Vijayakumar, CEO, HCLTech said in Q1 2024 earnings call with analysts.

Vijayakumar added that the company’s attrition rate has been on a declining trend. “The last 12-month attrition is at 16.3%, down 7.5% year-on-year,” he said.

Ramachandran Sundararajan, Chief People Officer at HCLTech said that the company moderates its hiring plans to be in line with forecasts for the quarter, adding that fresher intake remains typically higher in Q2.

“We do moderate our plans to be in line with our forecast for the quarter, the revenue forecast for the quarter. The next quarter is typically the quarter, where the fresher intake will be higher. That will continue as planned. So, basis that, we will moderate our requirements for lateral hires,” Sundararajan said.

HCLTech reported a 1.3% sequential decline in its revenues, but it grew 6.3% on a year-over-year basis in constant currency basis. Its services revenue was down 1% quarter-over- quarter.

The company has also decided to skip salary hikes for executives at various management levels.

“This year, we’ve made a decision to skip the compensation review, starting with the management layer, which is E4+, and also defer for junior to mid-level people by a quarter, which is E3 and below levels. While we do this, we will continue to closely monitor the industry trends and, as appropriate, take measures as required,” the chief executive said.

It is to be noted that its rival, Tata Consultancy Services, reportedly expects to hire 40,000 freshers in FY24.