TCS links variable pay distribution with in-office attendance

23 Apr 2024 , 01:00 PM

Tata Consultancy Services (TCS) has revised its variable compensation policy to incorporate employees’ attendance in the office as a key factor. The updated policy, introduced after the company’s quarterly performance review, establishes four attendance tiers that determine variable pay for employees.

According to the new policy, employees who work from the office for less than 60% of the time will not earn variable pay for the quarter. Employees who attend the office between 60-75% of the time will receive 50% of the variable pay, while those who attend 75-85% of the time will receive 75% of the variable pay. Only employees with office compliance levels more than 85% will get the entire variable pay for the quarter.

TCS has already declared a return-to-work requirement, with business unit heads suggesting that grades, which are required for promotions, will be assigned based on their track record of working from the office.

Employees’ compliance when they opt for work from home will be checked quarterly. The policy said that if an employee is found to be in breach of the policies, it will have an impact on the individual’s yearly performance review, salary, and career advancement. An email sent to TCS regarding the amended policy received no response till the time of press.

The policy further stipulates that chronic failure to comply with the 85% work-from-office requirement will result in disciplinary action. At the time of publication, TCS had not responded to an email requesting information about the amended policy.

In their letter following the March quarter results, CEO K Krithivasan and CHRO Milind Lakkad emphasised the necessity of returning to work. Krithivasan emphasised the advantages of shared experiences, learning, teamwork, and camaraderie that come from working in a common physical location.

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