In a move to recognize and reward its workforce, Infosys, a leading IT services company, is gearing up to distribute a quarterly performance bonus to its employees in November, with an average payout of 80 percent. However, the bonus comes with a twist, as not all employees will be eligible for this performance-based windfall, according to reports from The Economic Times.
The eligibility criteria for the bonus are limited to employees at position level 6 (PL6-manager) and below, excluding entry-level positions. The distribution of the bonus will be at the discretion of unit delivery managers, who will assess individual performances and contributions during the July-September quarter.
While the average bonus percentage stands at 80, the actual payout for individuals will vary based on their performance metrics. This decision aims to recognize and reward exceptional contributions, aligning with Infosys’ commitment to fostering a performance-driven culture.
Infosys, headquartered in Bengaluru, commenced its annual appraisal cycle in October, following the deferral of salary hikes in the previous fiscal year. The 80 percent average variable pay bonus mirrors the payout structure in the first quarter of the current financial year but marks an increase from the 60-70 percent range observed in the preceding quarters of FY22.
In a communication to employees, the engineering HR head at Infosys outlined the process, emphasizing that the unit delivery managers would be responsible for the final decisions on bonus distribution within their respective units.
Despite industry-wide growth constraints and challenges, Infosys remains optimistic about the future. In a message to employees, the company expressed gratitude for their pivotal role in the organization’s success during a challenging quarter.
However, like many other IT giants, Infosys has experienced a dip in its headcount in recent months, attributed to industry-wide growth constraints. The $245-billion IT industry has faced pressures amid global macroeconomic concerns, including ongoing geopolitical issues like the Israel-Palestine conflict, leading to a tightening of technology spending.
In its last reported quarter, Infosys demonstrated a marginal year-on-year increase of 3.2 percent in net profit, reaching Rs 6,212 crore, with a 7 percent growth in revenue to Rs 38,994 crore. Despite these positive indicators, the company adjusted its revenue growth guidance for FY24, citing reduced tech spending by global clients and a cautious approach to employee expenses.
As reports of the performance bonus payout circulate, Infosys’ shares experienced marginal trading fluctuations.
