In a recent interview, C. Vijayakumar, Chief Executive Officer (CEO) and Managing Director (MD) of HCLTech, clarified the company’s stance on variable pay and attendance.
Despite India’s third-largest IT services company asking employees to report to the office thrice a week or face disciplinary action, HCLTech has no intention of linking variable pay to attendance.
HCLTech’s CEO emphasized that the return to office continues to increase, but the company does not plan to link variable compensation with bringing people to the office.
Unlike rival Tata Consultancy Services (TCS), which has linked its quarterly variable pay component to employee attendance in the office, HCLTech remains committed to a hybrid model with a three-day office policy.
HCLTech Variable Pay: A Small Percentage of Compensation
HCLTech’s Chief People Officer, Ramachandran Sundararajan, clarified that variable pay is not a significant cost for the company.
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The quarterly variable pay constitutes less than 3% of an individual’s annual compensation and is applicable primarily to junior-level employees.
TCS’s Approach and Workforce Impact
TCS’s decision to link variable pay to attendance has resulted in 70% of its workforce returning to offices.
TCS onboarded nearly 40% of its current employee base during the pandemic years, and this measure aims to ensure that employees understand the value of coming to work.
Summing Up!
HCLTech’s approach reflects its commitment to flexibility and employee well-being. While TCS’s move may be temporary, HCLTech continues to prioritize a balanced approach to work arrangements.
In summary, HCLTech stands firm in its decision not to tie variable pay to attendance, recognizing the importance of maintaining a flexible work environment while valuing employee contributions.
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