This was the Company’s way of rewarding its employees across all verticals and business units, for good performance.
All employees of TCS (Tata Consultancy Services) based out of India will get 100 per cent of their quarterly variable pay. The pay is only applicable to staff based out of India as employees of international operations are eligible for an annual variable pay.
Exactly a year ago, TCS had declared a cut in variable pay citing dull growth. The Company had then mentioned that all employees in C1 or equivalent grades will receive 50 per cent of variable pay, while those in C2 and above grades will get between 0 – 50 per cent. However, all employees in Y or equivalent grades—primarily trainees—were exempted from this cut and were given 100 per cent of their variable pay.
Since then, some business unit or employees of certain grades have received the full variable pay or at times, even more than that. What make this move important is that all employees across levels, functions and business units have received this pay.
India’s largest IT services company delivered a strong performance in the third quarter and this was its way of rewarding its employees across all verticals and business units. TCS reported a profit of Rs 6,531 crore, a 1.3 per cent sequential growth!
The attrition rate at TCS also fell in the last quarter by 0.2 percentage points to 11.1 per cent. In the last quarter, TCS added 1667 employees.
This development comes as a reliever for the entire industry, as Indian IT services companies have been grappling with tough times given the changing business dynamics.