January 16, 2018 5:57:07 am
Infosys has doled out 95 per cent of variable pay to its employees for the third quarter of the current financial year, which is its highest in the last nine quarters. In the current scenario when salary hikes for information technology professionals have come down to single digits, this is good news for employees of Infosys.
Infosys chief operating officer UB Pravin Rao said, “Our decent performance in quarter three has enabled us to pay the highest level of variable payout for the last nine quarters to our employees.” He made these comments during the investor call following the quarterly results on Friday last.
Infosys on an average used to pay around 70-75 per cent of its variable pay to the employees, but this time it has increased. “During the quarter, we provided compensation increases and higher variable payouts to our employees. Our investments in employees continues to deliver results as reflected in lower attrition,” Rao said.
The attrition rate at Infosys has come down to 15.8 per cent in the third quarter of the financial year 2017-18 as compared to 17.2 per cent in the second quarter.
The company has also rolled out compensation increases for its middle and senior management staff in various geogrpahies. These compensation increases have also resulted in lower attrition rate for the company, which it had struggled with for the past couple of quarters. Variable pay constitutes an important element in the compensation structure of employees. Infosys had in the past reduced the component of variable pay while increasing the fixed component so as to assure a higher fixed payout to employees.
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