Decoding the TCS Row: An employee’s office attendance is linked to a portion of the variable pay (bonus) at Tata Consultancy Services.
Only employees with attendance exceeding 85% qualify for the full variable pay. Employees who attend 60-75% of the time receive 50% of their variable pay. Employees who attend 75-85% get 75% of their variable pay.
Earlier this year, the IT services giant mandated employees work five days a week from the office.
The change has sparked concerns among some TCS employees who may favor or need a more flexible work arrangement (such as work-from-home options).
Here’s a breakdown:
- Employees at TCS are required to return to work.
- An employee’s variable pay (bonus) is now based on how often they attend the office. Employees who attend less frequently (60-75% of the time) receive a reduced bonus. Only those who attend most often (85%) earn the full bonus.
- Let’s say the company offers a variable pay bonus of Rs 1,000,000.
- For the full bonus amount, they expect 80% office attendance.
- The full bonus (Rs 1,00,000) would likely be awarded to employee A if they maintain 90% attendance throughout the year.
- The employee managing 70% office attendance might receive a reduced bonus amount, perhaps 50% (Rs 50,000) for meeting some attendance requirements but not reaching the full expectation.
- In this case, Employee C has only 50% attendance and might receive a very small bonus or none at all depending on the specific policy (e.g., Rs. 0 or a minimum threshold to qualify).
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Attendance at the office is linked to promotions: Working from home compliance is monitored, and frequent absences can negatively impact promotions.
There is likely to be a system in place where grades are assigned, and these grades might take into account office attendance as well as other performance metrics.
After the pandemic, TCS followed a hybrid work model, which it ended on October 1, 2023.
Employees at TCS received an email in February informing them that their variable pay would be linked to their attendance.
The amount of a variable pay varies from period to period and is determined by the company based on the employee’s performance over and above their base salary.
It is the linking of variable pay to office attendance that has sparked discussion and might have mixed reactions among employees.
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