BENGALURU: IT services company Infosys will roll out 80% variable pay on average to its employees for the September quarter of this financial year (Q2FY24).
According to an email sent to employees (seen by this newspaper) by the HR team, “The average bonus payout for Q2FY24 is 80% at an organisation level and your final individual payment is governed by the unit guidelines. The performance bonus payment for Q2FY24 is scheduled to take place in the payroll of November 2023.”
In June quarter too, the company had rolled out 80% variable pay to employees. The company deferred salary hikes for nearly two quarters and in Q2 earnings, the company announced that from November 1, 2023, it will roll out hikes across all employees.
The IT sector has been facing many challenges including macroeconomic headwinds and delays in decision making by clients. Also, according to analysts, variable compensation levels will influence quarterly margins across companies.
“Clients across verticals are undertaking cost measures, restructurings and reorganisations. Such activities can impact near-term IT spending for vendors. Outsourced spends can be impacted for clients pursuing accelerated insourcing. Client-specific issues are hard to decipher—we believe all companies have vulnerable accounts,” brokerage firm Kotak Institutional Equities recently said.Several factors will impact the growth dynamics in CY2024, including the vertical mix, services mix, ability to win large/mega deals and defend share in key accounts, and exposure to impacted clients, it added.