The majority of the staff at Tata Consultancy Services (TCS), the largest provider of IT services in India, will get 100 per cent variable pay for the quarter ending in September 2023.
TCS' Chief Human Resources Officer Milind Lakkad disclosed a 100 per cent variable for 70 per cent of its staff base in Q2FY24 during the company's post-earnings conference call.
He told the remaining workers that their pay would be flexible, depending on how well their business unit performed. In response to a question from the media, Lakkad stated, “We are going to have hundred percent of the variable pay for 70 per cent of our workforce and the remaining workforce will get paid based on the business unit performance."
TCS made pay 100 per cent variable in the June quarter as well.
Meanwhile, TCS' main competitors, Infosys and Wipro rolled out only 80 per cent variable pay for the quarter.
TCS also finished its pay hike in Q1, unlike other big IT companies, who have delayed the process.
On a quarterly basis, the Indian IT major experienced a net reduction in headcount of 6,333 workers. As of September 30th, TCS has 6,08,985 net employees. In the June quarter, the corporation had 6,15,318 employees.
The headcount of the IT services company also decreased annually. Their Q2FY23 headcount was 616,171. In FY24's second quarter, there were 7,186 fewer employees.
The company's investments in talent, according to the CHRO, are to blame for this. He mentioned that the hiring goals for the IT major had been adjusted.