Close on the heels of the news that Infosys Technologies has put some 5 per cent of its employees under scanner, comes under another scanner, comes another news that shows the mounting pressure on Indian IT companies.
The country's second-largest IT company has reportedly warned that it may cut employee bonuses and compensation packages in the months ahead as the global meltdown strains its revenues.
Company's CEO, Kris Gopalakrishnan told a business daily recently that the current year is expected to be very muted in terms of increase in salaries, bonuses and promotions.
The CEO termed the current business environment as the toughest since he started his career in the year 1979. He added that the conditions have deteriorated over the past months.
Infosys has a variable pay structure that has been created to link individual employee compensation to the company’s performance. This variable pay structure is dependent on company, unit and individual performance, according to a company official.
According to some recent media reports, the company has put at least 5,000 employees or 5 per cent of its total global workforce under the performance scanner. Media reports also suggest that the company has asked senior managers (project managers, senior and group project managers, delivery managers) to give lowest performance rating (4 on a scale of 1-4) to the 'underperforming' 5 per cent as a part of its consolidated relative ranking (CRR).
Incidentally, during its Q3 results announcements, Infosys also said that it will hire around 27,000 professionals by March this year, up from around 25,000 annual hiring the firm had projected earlier.
For the third quarter ending December 31, 2008, Infosys had made a gross addition of 5,997 with the net intake being 2,772.
The country's second-largest IT company has reportedly warned that it may cut employee bonuses and compensation packages in the months ahead as the global meltdown strains its revenues.
Company's CEO, Kris Gopalakrishnan told a business daily recently that the current year is expected to be very muted in terms of increase in salaries, bonuses and promotions.
The CEO termed the current business environment as the toughest since he started his career in the year 1979. He added that the conditions have deteriorated over the past months.
Infosys has a variable pay structure that has been created to link individual employee compensation to the company’s performance. This variable pay structure is dependent on company, unit and individual performance, according to a company official.
According to some recent media reports, the company has put at least 5,000 employees or 5 per cent of its total global workforce under the performance scanner. Media reports also suggest that the company has asked senior managers (project managers, senior and group project managers, delivery managers) to give lowest performance rating (4 on a scale of 1-4) to the 'underperforming' 5 per cent as a part of its consolidated relative ranking (CRR).
Incidentally, during its Q3 results announcements, Infosys also said that it will hire around 27,000 professionals by March this year, up from around 25,000 annual hiring the firm had projected earlier.
For the third quarter ending December 31, 2008, Infosys had made a gross addition of 5,997 with the net intake being 2,772.
Article Source:http://infotech.indiatimes.com/News/Infosys_may_slash_variable_pay_/articleshow/4063374.cms
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