TCS rolls out 100% variable pay for the majority of the workforce
Tata Consultancy Services, the leading Indian information technology services company. And, now one of the largest employer in the world, has announced a new variable compensation plan for the majority of its workforce.
TCS has expanded its variable pay plan to 100% of the workforce. And, it is extending it to new employees from April 1, 2020. The company announced this during its fiscal year earnings call on Friday, February 15, 2019.
Tata Consultancy Services has announced that it will award 100% variable pay to the majority of its employees, becoming one of the first Indian companies to take up this initiative. The flagship initiative, TCS variable pay allows employees to earn up to 20% bonus. Its a great opportunity to earn more for the employees on their annual variable pay.
This new variable pay program will be implemented to ensure that employees are rewarded based on their contributions, thereby aligning their interests with those of the company. The company has also stated that this decision is driven by its confidence in growth prospects for technology services and an overall positive corporate environment.
TCS, India’s largest software exporter, has announced a new variable pay and productivity-linked award for the majority of its workforce. The company said that this was a significant shift from its earlier model, where only a small percentage of employees received any variable pay.
The news comes as part of a new program called “TCS 2022” and builds on previous initiatives such as full-time employees getting paid overtime, Flexi timings and unlimited maternity leave. The move comes as part of TCS’ efforts to change work culture and align the interests of employees with those of the company.
Tata Consultancy Services profile
Tata Consultancy Services has announced a new pay structure for its employees based on performance. The company’s new variable pay announcement will see the majority of its workforce receive 100% variable pay. The move will see nearly all employees receiving an increase in their monthly income. It impact the salary of some senior executives who won’t receive any variable pay at all.
Tata Consultancy Services‘ new variable pay announcement will benefit 99% of its employees. Variable pay framework is in news, and applies to most of the employees. This change will see employees receive a significant portion of their salary in variable pay. It is based on business performance and individual performance. This move is a move away from its previous fixed salary model. It can criticized as being too rigid and inflexible in volatile economic times.
TCS has announced its intention to introduce a new variable pay structure for most of its employees, who will receive 100% variable compensation as part of the initiative. The new variable pay model will be introduced. Now it is targeting towards employees at all levels across India, Europe, North America, and APAC regions.
With this new variable pay model, for the majority of TCSers. Their pay will move from a fixed to a variable component. This means that instead of a fixed salary that remains unchanged regardless of performance and business conditions. They’ll get paid more when they deliver results. And if they don’t perform well enough or if revenue targets are missed then they can expect a lower payout.