Infosys, the Indian Information Technology (IT) services giant, has announced the payment of performance incentives averaging 80% of the target to qualified employees for the quarter ending December, ahead of the regular annual wage modifications expected by March, according to Economic Times.
The variable pay distribution has been reduced by up to 10 percentage points compared to the previous quarter for staff in the delivery and sales divisions, which account for the majority of the Bengaluru-based company's 3,23,000 employees.
"In line with our organisational goals of building high-performance work culture, we have continued to drive performance differentiation while closing bonus pay-outs as well," stated the company's communication to specific employees.
"There has been a 5-10-percentage-point drop compared to last quarter when some people even got 100% of the performance bonus. Looks like Infosys is conserving funds to fund pay hike expenses,” an employee of Infosys told Economic Times, on the condition of anonymity.
Employees got around 85 per cent of their variable compensation from July to September.
"This time it is, employees received an average of around 75% at unit level rating, 100 per cent for 'outstanding' rating, 85 per cent for 'commendable' rating and 70 per cent for 'met expectations' rating for JL5 & JL6," another employee told Economic Times.
Team leaders are designated as JL5 (Job Level 5), whereas lower-level professions include software engineers, senior engineers, system engineers, and consultants. Managers, senior managers, delivery managers, and senior delivery managers are all JL6 or higher jobs, except vice-presidents.
Despite Infosys raising its revenue prediction for the current fiscal year to 4.5 per cent to 5.0 per cent, lower pay-outs were expected.
