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Infosys cuts variable pay of employees to save costs
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Infosys cuts variable pay of employees to save costs
Infosys Technologies, India`s second major software exporter, had cut the variable pay of its employees.
It is the second time during in the last few months that Infosys has cut the variable salary of its employees. Sources told NDTV that now 70 per cent of the variable salary is guaranteed for employees. The figure had been reduced from 90 per cent to 80 per cent earlier.
"Last quarter we reduced advanced payments (to employees) by a very small percentage," Mohandas Pai, Director HR, Infosys Technologies told NDTV.
Variable pay for an employee at Infosys is paid in advance every quarter. Employees at the senior level have a higher part of their salary as variable pay while entry level employees have a very small part of their salary as variable pay. The variable pay of the employee is determined by a combination of factors, including company performance, the performance of the business unit and the individual`s personal performance.
Infosys has also asked each department heads to identify five per cent of employees, whose performance in the last two years has been at the bottom rung of the appraisal process.
Infosys had earlier asked 2100 employees to go after their performance was found to be below par.
Indian IT industry gets nearly 60 per cent of their estimated $50 billion revenues from US-based companies. Due to the weakness in US economy, IT services are expecting profit in the current financial year to be flat.
Source:
http://profit.ndtv.com/2009/05/12203737/Infosys-cuts-variable-salary-o.html
It is the second time during in the last few months that Infosys has cut the variable salary of its employees. Sources told NDTV that now 70 per cent of the variable salary is guaranteed for employees. The figure had been reduced from 90 per cent to 80 per cent earlier.
"Last quarter we reduced advanced payments (to employees) by a very small percentage," Mohandas Pai, Director HR, Infosys Technologies told NDTV.
Variable pay for an employee at Infosys is paid in advance every quarter. Employees at the senior level have a higher part of their salary as variable pay while entry level employees have a very small part of their salary as variable pay. The variable pay of the employee is determined by a combination of factors, including company performance, the performance of the business unit and the individual`s personal performance.
Infosys has also asked each department heads to identify five per cent of employees, whose performance in the last two years has been at the bottom rung of the appraisal process.
Infosys had earlier asked 2100 employees to go after their performance was found to be below par.
Indian IT industry gets nearly 60 per cent of their estimated $50 billion revenues from US-based companies. Due to the weakness in US economy, IT services are expecting profit in the current financial year to be flat.
Source:
http://profit.ndtv.com/2009/05/12203737/Infosys-cuts-variable-salary-o.html
