TCS update: After announcing its Q2 results, Tata Consultancy Services (TCS) Chief Human Resources Officer, Sudeep Kunnumal, said the company will give higher variable pay to its senior employees based on their individual and team performance.
He added that TCS has also increased its overall quarterly bonus compared to previous quarters.
100% variable pay for junior employees
Kunnumal assured that TCS will continue giving 100 per cent variable pay to employees at the junior level, which includes those in grades C, C1 and C2. These employees will also continue to receive their annual salary hikes as usual.
He mentioned that almost all employees, except a few new joiners, are covered under this quarterly bonus plan.
“Basically, it covers all the people who have been with our organisation, who are entitled for the quarterly bonus, except maybe for new joinees, but it covers practically every one, normally, at the junior level we have been paying 100 per cent, which is what will continue and for seniors, we will pay a higher amount, which is again based on the individual and unit performance,” news agency PTI reported, quoting Kunnumal.
Details from internal email
In an internal email cited by Economic Times, Kunnumal wrote, “All employees up to C2 grade will receive 100% of their Quarterly Variable Allowance (QVA).”
For those at C3A grade and above, the payout will depend on the unit’s and individual’s performance, but overall, the company will pay more than last year to this group.
“All employees up to C2 grade (or equivalent) covered under the quarterly variable allowance (QVA) plan will receive 100% of the QVA. The individual payout for C3A grade and above (or equivalent grades) may vary, depending on business performance. I am glad to inform that the overall QVA payout for this segment will be higher than the previous year. The actual payout will depend on the unit performance,” Kunnumal said in official mail, cited by the news outlet.
Clarification on layoffs
Amid media reports claiming that TCS plans to lay off between 50,000 and 80,000 employees, Kunnumal denied the exaggerated numbers. He clarified that while TCS is restructuring and reorganising roles as part of its focus on artificial intelligence (AI), the actual number of job cuts is much lower – around 12,000 roles, which is about 2% of its global workforce.
Kunnumal stressed that the company is not targeting a fixed number for layoffs and that many reports are not factually accurate.