India’s biggest IT services provider TCS rolls out 100 per cent variable pay for its employees for the quarter ending December 2020 after its blockbuster outcomes.
In a note to employees, Milind Lakkad, Chief Human Resources, TCS asserted, “We will be paying 100% of the Quarterly Variable Allowance (QVA) this quarter (Q3) for all grades applicable under this plan.”
The company provides QVA based on its quarterly performance. Moneycontrol has seen the copy of the note.
While the 100 per cent variable wage is not unique, according to TCS employees, it is not usually across the board. A senior employee spoke of that it is usually 50-60 per cent.
Variable pay across the board has arrived at the posterior of the sharp advancement the company saw in the seasonally week, December quarter. This was steered by heightened tech spending by clients at the tail of COVID-19, broad-based development across sectors and geographies, and high outsourcing chances.
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For the December 2020 quarter, the company’s revenue grew 2.1 per cent y-o-y to $5.7 billion, after decreasing 7.8 per cent and 2.1 per cent in Q1 and Q2, respectively. TCS is optimistic about getting back on to a double-digit progress trajectory in FY22 as it foresees a multi-year technology conversion progression.
“Over the last 10 months, we have seen extensive collaboration between teams, improved frequency and effectiveness of communications within teams and a significant increase in supervisor connects—a testimony to our indomitable spirit and ability to adapt,” Lakkad said in the mail.
“Your enthusiastic participation in learning and upskilling initiatives has created growth opportunities for you and contributed to organisational growth,” he added.