As per reports, an Indian multinational corporation, Wipro rolls out 87% of the variable quarterly pay to over 80% of its workforce.
However, Wipro’s remaining employees will receive variable pay based on the unit’s target achievement. The company will pay variable pay for the third quarter that ended in December along with February month’s salary.
The variable pay will be for bands A to B3 (this will be including freshers and team leader levels).
“To drive our common goals, our business-linked variable pay is based on a quarter’s performance against revenue, bookings, and operating margin,” the report said.
On the other hand, Tata Consultancy Services (TCS) has decided to give 100 percent variable pay to almost all junior-level employees of its workforce for the quarter that ended in December, Q3FY23.
TCS senior employees will get their variable pay based on business performance. Additionally, the amount of variable pay can exceed 100 percent or more.
Wipro’s net headcount has decreased by 435 employees during the December quarter. The company’s voluntary attrition moderated 180 bps from the previous quarter, which stood at 21.2% for the trailing twelve months for the quarter.
Wipro added 3,000 freshers in the third quarter and plans to add 5,000 in the current quarter, according to Chief Human Resources Officer Saurabh Govil.
Thierry Delaporte, CEO, and Managing Director said, “I am pleased to report that we have delivered another quarter of double-digit revenue growth.”
“Our Total Bookings were over $4.3 billion, led by solid large deal signings of over $1 billion. We improved our margins by 120 basis points and our attrition moderated for the fourth quarter in a row”, Thierry Delaporte added.
Jatin Dalal, Chief Financial Officer, said, “Our Operating margins are now at 16.3%, which is an expansion of 120 basis points from last quarter. This expansion of margins was after absorbing the investments we made in our people by way of salary increases, promotions, and long-term incentives for our senior leadership.”
The company’s attrition rate has also continued to ease to 21.2% from 23% in the previous quarter. The firm’s total headcount at the end of the December quarter slipped to 258,744 from 259,179 in the last quarter.
As of September 30, 2022, Wipro added 605 new employees. In the second quarter, the company promoted more than 10,000 colleagues and increased salaries across bands.