New Delhi: TATA Consultancy Services (TCS) has updated the company’s variable policy to include work from the office as a crucial factor. The revised policy, which was implemented shortly after the company’s quarterly results, has four attendance slabs that determine the variable pay for employees.
As per the new policy, the employees who work from the office for less than 60% of the time will not receive any variable pay for the quarter. Employees with an office attendance between 60-75% will receive 50% of the variable pay, while employees who come to the office 75-85% of the time will be eligible for 75% of the variable pay. Only those with office compliance levels above 85% will receive the full variable pay for the quarter.
The heads of business units have informed their teams in writing that their performance in working from the office will be taken into consideration when determining grades, which are a requirement for granting promotions. The policy also states that disciplinary action will be taken if the 85% work-from-office standard is consistently broken.
“Every quarter, the compliance of employees to work from home will be evaluated. The policy specified that there will be consequences for an employee’s yearly performance review, pay, and career advancement if it is discovered that they have violated the established policies. TCS was contacted via email regarding the revised policy, but no answer was received until just before publication.
Following the March quarter results, CEO K Krithivasan and CHRO Milind Lakkad stressed the value of coming back to work in their remarks to staff. According to Krithivasan, “The last quarter has seen most of you return to the workplace, creating shared experiences, nurturing greater learning, collaboration, and camaraderie.”
Other Indian IT firms, including Wipro and Infosys, have not connected variable compensation to the need for returning employees to the office. According to Saurabh Govil, the CHRO of the company, Wipro distributed an average variable payout of 85% for the March quarter of FY24. This aligns with the junior employees’ 85% variable compensation from the December quarter.
It is required of TCS workers to work five days a week from the office. Among the big IT companies in India, the company is the first to discipline staff members who disobey this rule. For individuals who don’t show up for work every day for the full five days, the city stipend has already started to decrease.
