Bangalore: Infosys rewards its employees by Noting down their names secretly and routinely managing commentary. The first phase of such a shift could be a surprise bonus for employees who are performing the best. And if this is going to take place, Infosys would give a huge compensation to the top performers, reports Economic Times.
The management has confirmed that, this trend will continue for the next coming quarters. Chief Financial Officer Rajiv Bansal said Infosys has to "pay employees better" if the company performs well. "We have to make sure that people who are performing well get high variable pay."
Infosys is picking up with a stable growth after facing instability and underperforming for two years. After, NR Narayana Murthy returned as the chairman of the company in June 2013, the market for the company was improved and immediately he increased the salary for all the employees. The salary was hiked based on one condition, that is, the company will reward top performers and employee with consistent low performance will have to seek opportunities elsewhere. The company’s spokesman said, “"Variable pay is part of the compensation structure at Infosys, and this quarter we have provided for higher payouts than the last quarter."
Lately, the company paid salary of up to $1.08 billion (6,800 crore), which is more than two-thirds of revenue.
"Attrition is one of the concerns we have. We are investing back into employees, we have given the wage hike, and we have changed salary structures for employees, we are paying them better variable pay," CFO Bansal told analysts in the earnings call, in response to questions on the bonus provision's impact on margins.
"While high employee attrition could be one of the reasons for bonus payment, the main reason is the company has been performing above its own expectations in the last two quarters," said Hitesh Shah, director at brokerage firm IDFC Securities. Shah said the bonus could be anywhere between 25 percent and 150 percent of the variable pay of an employee.