Vodafone Idea has ‘good news’ for its employeesVodafone Idea has ‘good news’ for its employeesDevina Sengupta Vodafone Idea plans to increase salaries — likely June — after passing over the increment cycle last year, although promotions, if at all, will be rare, said people familiar with the matter. | ET Bureau | Jan 15, 2019, 09:50AM IST
Vodafone Idea plans to increase salaries — likely June — after passing over the increment cycle last year, although promotions, if at all, will be rare, said people familiar with the matter.
Employees of erstwhile Idea Cellular and Vodafone India had not been given any increments since 2017, being in the midst of merger. Now, with synergies falling into place, India’s largest mobile phone operator will give raises to its 14,000-strong workforce.
“Hikes will be 5-7% on average and will happen across levels. When a large-scale merger takes place, there is always a sense of apprehension among employees,” said one person aware of the development. “The masses are sticking around because they are yet to get the right break. A raise now, after a gap of a year, will send the right signals.”
Timing is important because rivals Airtel and Jio rolled out their increments and bonuses last year, albeit muted, and are expected to do so again in a month, experts said.
A senior executive aware of developments confirmed the possibility of Vodafone Idea’s increments in the next few months. According to the people in the know, Vodafone Idea chief executive Balesh Sharma, in a recent interaction with employees, hinted that the management is working towards increments in June. Vodafone Idea declined to comment on the matter, saying queries “speculate about an inherently internal matter.”
Although the increments will meet industry standards, promotions are unlikely. “The company has just given new roles and responsibilities, created new hierarchies and it will be too early to give designation changes,” said another person.
Vodafone Idea shares fell 2.4% to Rs 35.95 at the close on the BSE on Monday.