Infosys made headlines in October this year when it said that it would be skipping campus hiring. A PTI report had revealed that the tech giant said that it won't be hiring fresh talent from campuses this year because it still has a "significant fresher bench" to train. In a press conference, Infosys CEO and MD Salil Parekh had also said that the company was carrying "inefficiencies in its employee pyramid and has enough room to tighten utilisation to 84-85 per cent." A month after this move, the company has announced that it will be paying 80 per cent variable pay to its employees. However, there is a catch-only selected employees will be eligible for the payout. The bonus will be paid as a quarterly performance bonus for September.
Infosys to pay 80 per cent performance bonus
As per an Economic Times report, employees at position level 6 and below - which means below manager level except for entry level employees - will receive an average payout of 80 per cent. This is more than what was paid as the performance bonus last quarter, where payouts ranged between 60% and 70%.
In an email sent to employees, the company highlighted the significance of the bonus, emphasizing that it reflects the employees' performance and contributions during the July-September period. The distribution of the payout will be determined by unit delivery managers, adding an element of individualization to the process.
The HR's email sent to employees read, "This is to keep you all informed that the quarterly performance bonus payout for Q2FY2024 will happen in November 2023 payroll for all eligible employees.
It added that the employees were able "to stay relevant and build a solid foundation for future market share expansions in Q2, despite the challenging environment." Adding that the employees play a "pivotal role" in the success of the organisation, the tech giant said that it looks forward to "an optimistic quarter ahead" with its employees.
The email added, "Unit delivery managers will finalise the distribution of the payout for their respective units and inform the eligible employees this week."
Infosys founder Narayana Murthy's recent comments
On a related note, Infosys co-founder NR Narayana Murthy had been making headlines recently for his comments. Just last month, the tech mogul triggered a nationwide debate when he said that youngsters should work for 70 hours every week. And last week, Murthy said that becoming a software engineer or financial analyst was "very easy" whereas being an entrepreneur takes a lot of work. He talked about the challenges faced by aspiring entrepreneurs in India, and also acknowledged the government's efforts in fostering the startup ecosystem.
In an interview with Moneycontrol, Murthy said that there has to be a broader societal shift in perception and support for risk-takers like young entrepreneurs who are trying to build a business.
"We see a surge of entrepreneurs emerging with innovative ideas that were unimaginable just a decade ago," remarked Murthy, who himself embarked on the entrepreneurial journey with Infosys in 1981. He had just six other engineers in his team at the time. Adding that youngsters today are more confident and ambitious, Murthy said that the entrepreneurs of today are eager to tackle complex problems.
Talking about how it is easy to become a software engineer or a financial analyst, Murthy said, "While it is very easy to become a software engineer or become a financial analyst, but to become an entrepreneur and say, 'I will try out this unbelievable idea, which has a low probability.' That is what we have to do. That is where there's a lot of work that we need to do."