Days after TCS announced 100 per cent variable payout for a section of employees for the recent quarter, HCLTech announced that 85 per cent of its employees will be awarded variable pay for Q4 FY 2022-23, which will be similar to previous quarters where 85 per cent of the company’s employees will be awarded variable pay.
Additional compensation
Variable pay is compensation that is awarded to an employee that has gone above and beyond their regular job requirements for their contribution.
It is a part of employee compensation which depends on the performance of the company as well as performance of individual employees.
The pay is meant to boost employee morale.
CPO addresses staff
Chief People Officer (CPO) Ram Sundarajan said, “Let us start with the variable pay question.
I think it’s a very top-of-the-mind question for everybody.
We are not making any changes to our variable pay plans.
85 per cent of our workforce will be in a variable pay plan this quarter.”
The CPO added, “Variable pay is just about five per cent, so it’s not a big percentage of employee compensation. So far as the policy is concerned the variable policy pay, there is no change in the policy.”
Net profit, Sales
HCLTech reported a 10.80 per cent year-on-year (YoY) growth in net profit at Rs 3,983 crore for the March quarter compared with Rs 3,593 crore in the same quarter last year.
It clocked 17.70 per cent YoY rise in net sales at Rs 26,060 crore for the quarter
This is against Rs 22,597 crore sales it reported in the corresponding quarter last year.
New metric
Prateek Aggarwal, Chief Financial Officer, HCLTech noted: “FY’23 concluded with resounding growth of 18.5 per cent in INR and 13.7 per cent in CC, with EBIT at 18.2 per cent.
This quarter, we have started publishing a new metric, Annual Recurring Revenue (ARR) for our Software business.
It is heartening to note that ARR is at US$ 1Bn+ level, which grew at 5.2 per cent YoY CC (ex. divested business).”
Salary hikes in TCS
Chief Human Resources Officer of TCS Milind Lakkad had said that high performers in the company will be rewarded with 12-15 per cent hikes in FY24
For others, hike percentages are ranging from 1.5 to 8 percent.
“Our hikes this year will be similar to what we have been giving.
Especially for high performers, we are basically looking to get them to a 12-15 per cent hike.
“Then there is 8, 5, 1.5– it’s that kind of a number which is coming up” for the rest.
The executive emphasised that this is better than what TCS has done in previous years.
