Infosys promises 95% variable pay
To reward their workforce the second-largest IT player Infosys announces 95% variable pay and records in December quarter the highest payout in the past nine quarters. After Infosys ‘rival Tata Consultancy Services had revealed 100% of the target variable pay to all its India employees, the consultancy company had to follow up. Even though this does not seem to be of the same importance to when former CEO Vishal Sikka gifted IPhones 6 to 3,000 of the firms most valuable employees, the majority of the workforce is welcoming the change.
During the last year Infosys arranged more salary hikes for senior executives and long-term employees. The extraordinarily high payout in the last quarter was reportedly caused by “a very good quarter across multiple dimensions”, described Pravin Rao, Chief Operating Officer at Infosys. If the revenues continued to grow 5.8% year by year, the et profit stood at $796 million. He added:” During the quarter, we provided compensation increases and higher variable payouts to our employees. Our investments in employees continues to deliver results as reflected in lower attrition”.
According to the daily Indian IT firms produce these huge payments to keep their employees on board at a time where they fear losing clients to digital platforms such as social media, analytics and cloud computing. If the companies want to keep their payment up it’s a risky step either towards success or loss.