Some senior staff members of Tata Consultancy Services (TCS) have received lesser bonus payouts for the January to September quarter, while some employees did not receive a bonus at all. This reduced payout is a result of the revised variable pay policy of the tech multinational, which links bonus with performance and in-office attendance. However, surprisingly, even those who have returned to office have received lesser bonus.
Earlier this year, that is, in April 2024, the new policy for variable payouts stated that employees with less than 60 per cent in-office attendance would receive no variable pay, while those with 60 to 75 per cent in-office attendance would receive 50 per cent of the variable pay. While those with 75 to 85 per cent attendance were eligible for 75 per cent of the variable pay, those with more than 85 per cent attendance were to receive full variable pay.
This was TCS’ way of trying to bring employees back to office full time. The company had been fairly successful in doing so too, with a good 70 per cent of its employees reportedly returning to office.
However, with bonuses being reduced despite so many employees working from office, people are reportedly suspecting that the company may not have performed as well as expected; that it is being cautious amid the uncertain environment. The growth rate was reportedly slower than was anticipated, as is the case with most companies in the information technology space. The new policy has made senior employees more accountable as it links in-office presence with monetary incentives.
