Every TCS Employee Will Get 100% Variable Pay As Bonus: Find Out Why?
After the blockbuster results, India’s largest IT services provider and second most profitable company TCS has rolled out 100 percent variable pay for its employees for the for the quarter ending December 2020
“We will be paying 100% of the Quarterly Variable Allowance (QVA) this quarter (Q3) for all grades applicable under this plan” said Milind Lakkad, Chief Human Resources, TCS in a note to employees.
Based on quarterly performance, the company gives QVA. According to TCS employees, 100 percent variable pay is not uncommon, although it is not usually across the board. According to a senior employee, it is usually 50-60 percent.
The company witnessed in the seasonally weak December quarter strong growth and variable pay across the board. This growth is driven by and can be attributed to the increased tech spending by clients at the back of COVID-19, broad-based growth across sectors and geographies and also increased outsourcing opportunities.
Strong December 2020 Quarter :-
After declining 7.8 percent and 2.1 percent in Q1 and Q2, respectively, for the December 2020 quarter, the company’s revenue grew 2.1 percent y-o-y to $5.7 billion
As TCS anticipates a multi-year technology transformation cycle, it is confident about getting back on to a double digit growth trajectory in FY22
“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.
He added that “Your enthusiastic participation in learning and upskilling initiatives has created growth opportunities for you and contributed to organisational growth”.
2020 was an incredible year for the IT services giant where the HR team was able to adapt, collaborate and create magic in terms of work from home (WFH) environment. With an employee base of over 4 lakh, TCS is one of the largest private-sector employers in India. Margins expanded in Q3 despite wage hikes that were rolled out from October 2020.
Reimagining the HR Supply Chain:-
“Talent fungibility is playing a big role in terms of optimization…I would not completely rule out that visa will not be an issue for us anymore”.
Talent development is one of the top 3 strategies for TCS, he added and the management will continue to invest in talent and strengthen it.
TCS has significantly re-imagined HR supply chain in this pandemic, the overall talent ecosystem has strengthened in the last 18 months and we have a strong talent pool readily available across geographies, Lakkad added. He further stated that for instance, the number of trainees hired in the last 3 quarters in the US is equal to the number of trainees hired in the last full year.