The country’s biggest software exporter, Tata Consultancy Services (TCS), which competes with rivals Infosys Technologies and Wipro for talent, will bank on a generous quarterly variable pay linked to the company’s performance to retain talent, a senior executive said.
TCS battles rising employee churn as demand for IT services revives, and unlike Infosys and Wipro, does not have the benefit of Esops as a tool to retain employees. “We have the variable option, which we pay out at the end of the quarter. Last year, in three quarters, we paid more than 100%. Two quarters (Q2 and Q3), we gave out 150% and in the fourth quarter we gave 125% of the variable.
In the first quarter of 2010-11, we have given 100%, which is the full variable. That is one kind of lever that we have which peers don’t,” Ajoy Mukherjee, global head, (HR), TCS, told ET.
The Tata group firm does not have an Esop policy and instead compensates senior executives with higher pay. Last month, Infosys issued five equity shares to every employee and one more share for every year in the company to its lakh-plus staff to ring in its 30th anniversary.
Sunday, July 18, 2010
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