Mumbai: In a pleasant surprise to employees, Infosys has given 95 per cent of variable pay in the December quarter – a rare gesture and the highest level of payout in the past nine quarters.
“This is unusual and unexpected, especially in a weak quarter. We didn’t get iPhones (under former CEO Vishal Sikka, the company gave 3,000 iPhones to top performers). But I think this is a great morale booster with a new CEO at the helm,” one of employees told reporters.
Infosys in its Q3 results said the firm’s attrition rate dropped to 18.7 per cent in the December quarter from 21.4 per cent during the September quarter. The company’s workforce increased by 3,251 to 201,691 employees. Headcount fell by 113 people in the September quarter and by 1,811 in the June quarter.
Infosys’s numbers under CEO Salil Parekh have topped analyst estimates with a 38 per cent jump in third-quarter net profit, buoyed by a tax pact with the US Internal Revenue Service (IRS).
The firm’s former CEO Sikka had gifted iPhone 6s to 3,000 employees in an effort to stem the high attrition rate.
The new payout coincides with compensation increases to its middle and senior management in various geographies in the December quarter.
As new CEO Parekh takes the helm, it remains to be seen how he will tackle employee issues going forward.
Post the announcement of third quarter results, new CEO Parekh had said that a new roadmap for the IT behemoth will be undertaken from April after consultation with various stakeholders.
Tata Consultancy Services had also declared 100 per cent of the target variable pay to all employees on its India payroll for the quarter ended December 2017.