In what comes as a sigh of relief to a lot of employees, IT major, Infosys, announced 95 percent of variable pay in the December quarter. This is the highest amount paid to the employees of the IT Company in the last nine quarters of distress. Remember, this move comes less than a month after new CEO, Salil Parekh, took charge.
The news was confirmed by Infosys employees while speaking to some media houses. Th attrition rate of the ITR major is also at a low in the month of December. The variable pay is a great morale booster for the employees of the company which has been going through a rough path lately. Earlier, the company had withheld the salary hikes of the senior management in the recent annual appraisals.
According to the employees, the general amount that they received as a variable would range from anything between 70-75 percent. But, after a low phase, the company decided to reward the employees when they least expected it.
Infosys has had a record of surprising its employees with such morale boosters. Earlier under the former CEO, Vishal Sikka, the good performers were rewarded with iPhone 6s mobile phones. Around 3000 employees of the company had got the new phones against their exceptional performance in that quarter.
The company is facing troubles due to automation of the IT services. Due to the inclination of most clients to social media and off tracking from traditional IT services, the tech giant is expecting a slower growth in the upcoming quarter. There are apprehensions of higher attrition from the company at this point. The 95 percent variable given to the employees might be seen as an attempt to stop attrition from the company at this point.
The company while speaking to a few media houses said that the variables were paid to the employees on the basis of their performance in the quarter.
Technology in general and IT, in particular, has been away from the sunshine for close to two years now. After Donald Trump’s victory in the US, the Indian I sector has been hit majorly. Trump’s stand against H1B visas hit the very basic framework of the Indian IT. Apart from that Infosys has been dealing with a lot of controversies internally. Be it the exit of Vishal Sikka or bringing back Nandan Nilekkani.
