Tata Consultancy Services (TCS), a leading global IT services provider, has officially linked its employees' quarterly variable pay to their office attendance rates, according to a media report.
This policy change, announced months after the company mandated a full-time return to office, stipulates that employees must now maintain an 85 per cent attendance rate to earn their full variable pay.
According to the latest update to the company's internal HR policies, which was revised on 17 April, those employees who achieve 75-85 per cent office attendance will receive 75 per cent of their variable compensation, while those with 60-75 per cent attendance will receive only 50 per cent. Employees with less than 60 per cent attendance will not be eligible for the quarterly bonus. Moreover, consistent failure to comply with these attendance requirements could lead to disciplinary actions.
TCS had adopted a hybrid work model during the pandemic but returned to a traditional office setup from 1 October 2023, requiring all employees to work from the office five days a week. This move aligns with the company's strategy to foster better collaboration, learning opportunities and camaraderie among its workforce, as stressed by TCS CEO K Krithivasan in a recent communication summarising the company's performance for FY24. Krithivasan noted that most employees had returned to the workplace by the end of March 2024, a shift he believes is crucial for creating shared experiences and unlocking new opportunities.
This policy revision marks a significant shift from the more flexible work arrangements that were widely adopted across the IT industry in response to the global pandemic. As social norms return to pre-pandemic standards, TCS is taking steps to ensure that all associates are physically present at their designated work locations, which include TCS offices, client locations or any other assigned physical sites.
The decision to link pay to physical presence is part of a broader effort by the company to return to a pre-pandemic operational model, suggesting a firm belief in the benefits of in-person work environments over remote setups.
