Nearly 70% of Tata Consultancy Services (TCS) employees have returned to the office after the company tied variable pay to attendance, according to a report from Moneycontrol quoting Chief Human Resource Officer Milind Lakkad.
Lakkad mentioned that this measure is temporary and should be viewed as such.
In April 2023, TCS introduced a policy linking employees’ quarterly variable pay to their office attendance. Employees with less than 60% attendance will not receive the quarterly bonus. This policy followed TCS’s mandate for a five-day work-from-office schedule.
Under the new policy, employees must maintain at least 85% office attendance to receive their full quarterly bonus. The company has also planned disciplinary actions for non-compliance.
TCS has created attendance slabs:
- 75-85% attendance earns 75% of the variable pay.
- 60-75% attendance earns 50% of the variable pay.
“Today, almost 70% of our employees are back in the office. I’m not too concerned about those not returning or affected by this policy. The number of returning employees is increasing every week,” Lakkad told the news portal. “People are realizing the value of coming to the office,” he added.
TCS also reported that about 40% of its employees joined during the pandemic and have never worked from the office.
On July 11, 2024, TCS announced a 9% rise in net profit to ₹12,040 crore for the first quarter of FY 2024-25, up from ₹11,074 crore in the same quarter the previous year. The company’s board declared an interim dividend of ₹10 per equity share, payable on Monday, August 5.
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