The latest policy update comes months after the IT services giant mandated employees to work from office five days a week.
This policy change has sparked concerns among some TCS employees who might prefer or require a more flexible work arrangement (like work-from-home options). Some might argue that productivity is not solely dependent on physical office presence.
Here’s a breakdown:
Return-to-work mandate: TCS has mandated a return to the office for employees.
Example: Let’s say the company offers a variable pay bonus of Rs 1,00,000 per year.
They set an 80% office attendance expectation for the full bonus amount.
Employee A: Maintains 90% office attendance throughout the year. They would likely receive the full bonus (Rs 1,00,000).
Employee B: Manages 70% office attendance. They might receive a reduced bonus amount, perhaps 50% (Rs 50,000) for meeting some attendance requirement but not reaching the full expectation.
Employee C: Only has 50% office attendance. They might receive a very small bonus or none at all depending on the specific policy (e.g., Rs. 0 or a minimum threshold for qualification).
TCS was following a hybrid work model post pandemic, which it ended from October 1, 2023, asking employees to work from office five days a week.
Variable pay
A variable pay is given to employees on the basis of their performance over and above their base salary on a quarterly and/or an annual basis. The amount of variable pay varies from period to period and is decided by the company.
The concept of variable pay itself is a common practice in many companies. It’s the linking of this variable pay to office attendance that has sparked discussion and might have mixed reactions from employees.
Point to note: This development will make TCS the only Indian IT company to link variable payouts to its return-to-office mandate.
First Published: Apr 23 2024 | 11:30 AM IST