India’s largest IT services provider TCS rolls out 100 percent variable pay for its employees for the quarter ending December 2020 after its blockbuster results.
In a note to employees, Milind Lakkad, Chief Human Resources, TCS said, “We will be paying 100% of the Quarterly Variable Allowance (QVA) this quarter (Q3) for all grades applicable under this plan.”
The company gives QVA based on its quarterly performance. Moneycontrol has seen the copy of the note.
While the 100 percent variable pay is not uncommon, according to TCS employees, it is not usually across the board. A senior employee pointed out that it is usually 50-60 percent.
Variable pay across the board has come at the back of the strong growth the company witnessed in the seasonally weak December quarter. This was driven by increased tech spending by clients at the back of COVID-19, broad-based growth across sectors and geographies and also increased outsourcing opportunities.
For the December 2020 quarter, the company’s revenue grew 2.1 percent y-o-y to $5.7 billion, after declining 7.8 percent and 2.1 percent in Q1 and Q2, respectively. TCS is confident about getting back on to a double digit growth trajectory in FY22 as it anticipates a multi-year technology transformation cycle.
“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.
“Your enthusiastic participation in learning and upskilling initiatives has created growth opportunities for you and contributed to organisational growth,” he added.