Yesterday, July 11, 2024, Tata Consultancy Services (TCS) reported Q1FY25 results. IT giant said that nearly 70% of its employees have returned to the office following the introduction of a new policy linking variable pay to office attendance.
Chief HR Officer Milind Lakkad told MoneyControl on July 11 that almost 70 percent of employees are back in office following the new policy of linking variable pay to attendance. However, this measure is temporary and should be viewed as such.
In April 2024, TCS implemented a policy tying quarterly variable payouts to employee attendance, requiring at least 60% attendance to qualify for the bonus.
New Policy
- According to this new policy, employees falling below 60% attendance may not qualify for bonuses.
- The new policy designates 50% variable pay for those maintaining attendance between 60% and 75% for the quarter.
- The employees attending 75-85% of the time will receive 75% variable pay, while those with attendance exceeding 85% will receive their full variable pay.
During the company’s Q1FY25 results announcement conference, Chief HR Officer Milind Lakkad addressed questions about the policy, emphasizing the importance of in-office work and noting the positive trend of increasing office attendance.
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He said that many employees, having joined during the pandemic, are experiencing office work for the first time and are recognizing its value. Lakkad stressed that the implications of not coming to the office are significant but did not specify the extent.
Approximately 40% of TCS’s current workforce joined during the pandemic and had not previously worked from the office. Despite this, the return-to-office initiative is seeing gradual success, with the number of employees returning to the office rising weekly.
For the first quarter, TCS reported a 9% year-on-year increase in net profit, amounting to Rs 12,040 crore. Revenue from operations also saw a rise, increasing by 5.4% to Rs 62,613 crore.
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