LTIMindtree, one of India’s leading IT services companies, has introduced a new appraisal system linking salary hikes for middle and senior-level managers to competency tests. This initiative, part of the "My Career My Growth" (MCMG) framework, aims to ensure that managers remain proficient in technical skills and adapt to the rapidly evolving technological landscape.
Competency Tests:
Managers, project leads, and lead architects are required to pass tests in coding and mathematics.
The tests account for 50% of their annual performance appraisal, with the remaining 50% based on project performance and KRAs (key result areas).
Purpose:
The initiative is designed to foster skill enhancement, ensuring that senior employees stay updated with the latest technologies, especially in areas like AI.
LTIMindtree aims to align employee growth with organizational goals while maintaining high standards of performance.
Employee Concerns:
Some employees view this as a potential cost-cutting measure aimed at limiting pay hikes.
Concerns have also been raised about increased pressure on senior staff members to balance technical tests with project responsibilities.
Broader Implications:
The MCMG framework encourages employees to identify growth opportunities and set clear milestones for career progression.
By integrating competency-linked goals into appraisals, LTIMindtree hopes to enhance productivity and efficiency across teams.
The move comes at a time when the broader IT industry is witnessing slower wage growth due to automation and cost-cutting measures. According to reports, salary increments in the IT sector are expected to decline slightly in 2025, reflecting tighter budgets across companies.