Tata Consultancy Services, the essential arm of Indian industrial giant Tata, is reportedly cracking down on office-shy employees by cutting their bonuses and threatening to be omitted for promotions.
The $168 billion Indian consulting firm is luring its consultants back to the office full-time using a carrot-and-stick approach after eliminating hybrid work for many employees last October.
The consulting firm plans to limit its bonus payouts to exclude those that avoid paperwork five days per week and will even begin bearing in mind participation in annual performance reviews, that are crucial for promotion opportunities, Indian publications said mint And The Times of India reported.
“In the last quarter, most of you have returned to work, shared experiences and fostered greater learning, collaboration and camaraderie,” TCS CEO K Krithivasan reportedly wrote to employees in March.
Employees who work within the office for lower than three days is not going to receive a bonus, the releases said.
From there, bonuses will probably be tiered, with employees who work between 60% and 75% of their time within the office receiving half of their potential bonus, and people who work between 75% and 85% of their time within the office receiving three-quarters of that receive their “variable salary”.
Only employees who work greater than 85% of their time within the office can expect full pay.
In effect, which means only those that come into the office five days per week are entitled to 100% of their mandatory bonus.
A TCS representative didn’t respond Fortune’s Please comment.
TCS is cracking down on distant employees
TCS is a crucial arm of the Tata Group. set greater than 600,000 people from 152 nationalities. According to a report, the corporate employs 20,000 people across 30 locations within the UK Press release 2022. The company is the essential sponsor of the London Marathon.
The company is well known as a progressive employer and receives the awards that prove it.
TCS was one in all 16 corporations recognized “Top global employer” for 2024 by the Top Employers Institute, a certification that’s awarded based on worker surveys. The consultation also did Fortune’s Most Admired Companies List for 2024.
But TCS is now susceptible to exacerbating tensions amongst employees as the corporate goes beyond rules and rhetoric to actively penalize employees who cannot make it to the office.
In October last yr, TCS scrapped its hybrid work policy and sent most employees back to the office five days per week.
The Group CEO Krithivasan pointed this out in February Almost 40% of its employees joined the corporate through the Corona crisis, and the corporate had no hope of integrating them in the event that they stayed at home.
NG Subramaniam, chief operating officer, TCS, said, “Around 40,000 employees have joined us online during the pandemic and resigned online without any offline interaction and such a situation cannot be helpful for any company.”
“It is very clear to us that we have to get our original culture back.”
The recent memo distributed to employees shows how seriously TCS leadership is taking its own rhetoric.
In addition to capping bonuses based on appearance, office attendance will even reportedly be taken under consideration in performance-based reviews.
“Employees’ compliance with the home office rules is checked quarterly. If an employee is found to be in violation of the established policies, this will impact the employee’s annual performance review, compensation and career advancement,” the policy states.
Tying company rewards to attendance is a novel approach to attracting employees back to the office. But it follows a typical tactic utilized by tech corporations, which involves using financial incentives to persuade employees to come back to the office.
In 2021, several tech giants including Meta and Google said they’d cut the salaries of employees who moved to distant areas where the price of living was lower than of their Silicon Valley hubs.
These corporations have now implemented stricter hybrid policies that require employees to are available in a minimum of 4 days per week.
