competency test
India’s IT sector is undergoing rapid transformation, and LTIMindtree has taken a significant step by linking managerial pay hikes to a mandatory competency test. As part of its My Career My Growth (MCMG) framework, the company requires middle and senior-level employees to clear a technical assessment to qualify for annual appraisals.
This move, aimed at ensuring employees stay updated with AI advancements and coding efficiency, has sparked mixed reactions. While some view it as a progressive approach to upskilling, others fear it might be a way to reduce workforce and limit salary increments.
Understanding LTIMindtree’s New Appraisal System
LTIMindtree has introduced a 50-50 evaluation model for employees in managerial roles:
✅ 50% of the appraisal is based on project performance, KPIs, and key result areas (KRAs).
✅ 50% is based on competency tests, including technical knowledge, coding proficiency, and AI-related certifications.
Who Needs to Take the Test?
The policy applies to employees in the P3, P4, and P5 bands, which include:
- Project Leads
- Managers
- Lead Architects
Freshers and junior employees (P0, P1) are currently exempt.
What the Test Includes
The competency test evaluates:
📌 Coding Efficiency – Optimized, error-free code writing.
📌 AI & Automation Skills – AI-driven solutions and automation capabilities.
📌 Cloud Computing & Cybersecurity – Essential for modern IT solutions.
📌 Problem-Solving & Logical Thinking – Algorithm-based problem-solving.
Why LTIMindtree Introduced This Policy?
With automation and AI reshaping the IT industry, companies are focusing on:
- Productivity Enhancements: AI reduces the need for manual coding, so companies prefer fewer but highly skilled employees.
- Competitive Advantage: Staying ahead in a $286 billion Indian IT market.
- Client Demands: Enterprises demand employees with expertise in cutting-edge technologies.
According to an LTIMindtree spokesperson:
“Our performance management integrates competency-linked goals alongside project-specific goals, both carrying equal weightage.”
Mixed Reactions from Employees
The policy has divided employees.
📈 Positive Reactions
✅ Encourages continuous learning.
✅ Helps employees stay relevant in AI-driven job markets.
✅ Rewards skilled employees with higher pay hikes.
📉 Negative Reactions
❌ Added work pressure on existing responsibilities.
❌ Fear of job losses if employees fail the test.
❌ Potential reduction in salary hikes.
An LTIMindtree employee stated:
“This is done to ensure senior management stays updated with new technologies, given the pace of AI changes.”
However, some employees feel the test might be a way to control salary hikes and reduce workforce costs.
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Comparison with Other IT Companies
How Do Other IT Giants Approach Appraisals?
| Company | Pay Hike Criteria | Competency Test? |
|---|---|---|
| TCS | Project performance + certifications | No |
| Infosys | Skill-based incentives + project success | No |
| Wipro | AI & automation expertise | Yes (for leadership roles) |
| HCL Tech | Experience + customer satisfaction | No |
| Accenture | Learning & certifications | Yes (for promotions) |
| LTIMindtree | Project success + competency test | ✅ Yes (mandatory) |
While Wipro and Accenture have optional competency tests, LTIMindtree is among the first Indian IT firms to make it mandatory for pay hikes.
Impact on Employees and the Industry
📉 Potential Downsides
- Reduced workforce: Companies can now operate with fewer but highly skilled employees.
- Increased employee stress: Balancing projects + mandatory testing could lead to burnout.
- Risk of job losses: Employees failing the test might face lower hikes or even exits.
📈 Benefits for the IT Sector
- Higher productivity: Companies ensure only top-performing employees lead projects.
- Future-proofing careers: Employees remain competitive in an AI-driven world.
- Better project deliveries: Clients receive work from highly skilled professionals.
Future Implications: What Lies Ahead?
LTIMindtree’s new policy may set a precedent for other IT firms. If successful, it could lead to:
✅ Wider adoption of competency-linked pay hikes.
✅ More investments in AI upskilling programs.
✅ Increased focus on performance over tenure.
On the flip side, companies might face higher attrition rates, as employees who dislike the policy could switch to firms without such requirements.
Final Thoughts: A Step Forward or a Step Back?
LTIMindtree’s decision reflects the future of IT appraisals, where skill-based pay hikes become the new norm. While it encourages learning and upskilling, it also adds pressure on employees.
As AI reshapes industries, IT professionals must adapt—or risk being left behind.
What do you think about LTIMindtree’s policy? Share your thoughts in the comments!
Frequently Asked Questions (FAQs)
1. Is the competency test mandatory for all LTIMindtree employees?
No, it applies only to P3, P4, and P5 employees (managers, project leads, and architects).
2. What happens if an employee fails the test?
It could affect their pay hike or lead to additional training programs.
3. How often will employees need to take the test?
The test is linked to annual appraisals and might be required every year.
4. Are other IT firms following similar models?
Yes, but most companies do not make it mandatory for pay hikes.
External Sources & References
🔗 LTIMindtree Official Website
🔗 Moneycontrol – IT Salary Trends 2025
Disclaimer & Copyright
This article is based on publicly available sources and does not represent LTIMindtree’s official stance. All trademarks and copyrights belong to their respective owners.
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