Infosys Launches Cash Reward Policy for Employee Referrals, Offers Rs 700 Per Interview

Infosys Revamps Employee Referral Incentives Amid Talent Acquisition Drive

Bengaluru, June 7, 2025 – In a bold move to boost internal participation in hiring efforts, Indian IT services giant Infosys has rolled out a new referral incentive policy that rewards employees with Rs 700 per interview for successful candidate referrals. The initiative marks a strategic shift in the company’s approach to talent acquisition amid growing competition for tech talent and the need for efficient hiring practices.

The policy, introduced company-wide this week, is part of Infosys’ broader strategy to streamline recruitment, reduce attrition impact, and enhance employee engagement in the hiring lifecycle.

Encouraging Proactive Talent Engagement

Infosys’ latest employee-centric initiative is designed not only to fast-track hiring but also to leverage the company’s vast internal network to source high-quality talent. Under the new policy, employees who refer candidates will receive Rs 700 for each interview the referred candidate completes, regardless of the final selection outcome.

This is in addition to existing referral bonuses that are typically paid out when a referred candidate is hired and completes a specific tenure at the company.

An internal communication accessed by industry sources confirms the rollout, describing the policy as a “refreshed approach to amplify talent scouting by rewarding efforts made towards strengthening Infosys’ workforce.”

Analyst Perspective: A Smart Cost-Effective Recruitment Tool

Industry analysts are largely viewing this move as a cost-effective and scalable strategy.

“Infosys is sending a strong message that employee participation in hiring is more than welcome — it’s being monetarily valued,” said Ritika Jaiswal, HR strategist at TechWise Consultants. “Paying per interview rather than just for successful hires improves participation rates and keeps the recruitment funnel full, especially for niche roles.”

According to Jaiswal, such initiatives also help cut down third-party recruiter costs and reduce time-to-hire, crucial metrics in the current volatile tech job market.

A Response to Hiring Headwinds and Attrition Trends

In recent quarters, Infosys, like many of its IT sector peers, has been navigating moderating demand and changing attrition patterns. After a pandemic-induced hiring spree, the company faced rising costs and attrition peaking above 20% in FY23. Since then, efforts have been underway to stabilize headcounts and improve employee retention.

This new referral incentive policy comes at a time when demand for skilled digital roles like cloud, AI, and cybersecurity is increasing, while fresher intake has slowed. By incentivizing current employees — who understand the company culture and technical needs — Infosys is likely to improve candidate quality and reduce mismatched hires.

Market Context: Hiring Reforms Gaining Traction

Infosys is not the only tech major leveraging internal referral bonuses. TCS, Wipro, and HCL have implemented similar policies in recent years, but per-interview payouts are relatively rare, making Infosys’ move somewhat unique in the Indian IT space.

Companies are increasingly personalizing HR policies to be outcome-driven and agile. Infosys’ step reflects a new-age HR mindset — one that recognizes micro-efforts and attempts to reward real-time contributions instead of traditional milestone-based incentives.

“This is a modern, pay-for-performance twist in HR,” noted Ankit Verma, HR technology advisor and co-founder of HireSprint. “It reflects how tech firms are integrating data-led efficiency with employee advocacy.”

Investor Outlook: Small Move, Strategic Signal

From an investor standpoint, this HR tweak may not directly impact Infosys’ topline or bottom-line in the short term, but it signals operational prudence and a leaner hiring structure.

Infosys stock has been trading steadily, buoyed by expectations of improved margins and stable deal flows in the second half of FY26. The new policy could marginally improve hiring metrics and potentially reduce dependency on high-cost hiring channels.

“While it’s a tactical move, it underlines Infosys’ intent to optimize costs while building a future-ready workforce,” said Kunal Mehta, equity analyst at Embrace Capital. “Hiring is a significant cost center for IT firms. Any innovation here is welcome.”

The Road Ahead: Boosting Morale and Driving Ownership

More than just monetary gain, the policy is expected to create a sense of ownership among employees and empower them to become brand ambassadors for the company. It also adds a motivational layer to routine work, especially for those in roles closely aligned with recruitment or team expansion.

Internal feedback suggests that many employees have welcomed the move, viewing it as “fair recognition for effort” and a step toward a more transparent, reward-oriented culture.

As India’s IT sector adjusts to a hybrid, AI-enabled future, policies like this showcase how legacy firms like Infosys are reengineering traditional HR practices to stay agile, efficient, and people-focused.