The goal of variable pay is to encourage behaviour change.
Digital
Desk: Days after reports
suggested that Tata Consultancy Services (TCS) could offer 100% variable pay to
a subset of its employees for the most recent quarter, another IT services
exporter, HCLTech, revealed that 85% of its employees will receive variable pay
for Q4 FY 2022-23. The statement was made during the company's earnings call on
Thursday.
"Let us begin
with the variable wage issue. I believe that is a question that is on
everyone's mind. Our variable pay arrangements will remain unchanged.
"This quarter, 85 percent of our workforce will be on a variable pay
plan," HCLTech's Chief People Officer (CPO) Ram Sundarajan stated.
Variable pay, for the uninitiated, is money provided to an employee who has
gone above and beyond their regular job duties to contribute to the
organization's success. The goal of variable pay is to encourage behaviour
change.
TCS's Chief Human
Resources Officer, Milind Lakkad, had told ET NOW in an exclusive interview
that strong performers should expect 12-15 percent raises in FY24. According to
the official, raise percentages for others range from 1.5 to 8.
"This year's hikes will be similar to previous ones."
"We're basically looking to get them to a 12-15 percent hike," Milind
Lakkad said, adding, "then there's 8, 5, 1.5- it's that kind of a number
that's coming up" for the rest. The CEO highlighted that this is good,
even better than TCS's past performance.
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