LTIMindtree, one of India’s leading IT services companies, has introduced a new appraisal system that links salary hikes for middle and senior-level managers to the successful completion of competency tests. This move aims to ensure that managers stay updated with the latest technologies and maintain high standards of performance.
According to a report by Economic Times, the new system, part of the “My Career My Growth” (MCMG) framework, requires managers, project leads, and lead architects to pass a skills test in coding and mathematics. The appraisal process is now divided equally between project performance and the competency exam, with each component carrying 50% weightage.
An LTIMindtree spokesperson explained, “Our performance management process integrates competency-linked goals alongside project-specific goals. We believe both are equally important in assessing the overall annual performance of our talent, and as a result, they carry equal weightage.” The spokesperson added that the MCMG framework helps employees identify growth opportunities and set clear milestones for their career progression.
The competency tests are designed to evaluate the technical skills required for various projects, ensuring that senior management remains proficient in the rapidly evolving AI landscape. This initiative is expected to enhance productivity and efficiency within the company.
However, some employees have expressed concerns that the new system may be a cost-cutting measure to limit pay hikes. Despite these concerns, LTIMindtree maintains that the tests are essential for fostering skill enhancement and objective evaluation.
“The test is around whatever skillsets we possess that is required for our project, these are technical tests, certifications, etc needed to fulfil a project to meet the demand from clients,” one of the employees told ET.
The test weighs on 50% of the appraisal for project leads, managers and lead architects, while the other 50% is dependent on their projects and KRAs (key result areas), another employee confirmed.