Infosys on Friday has announced 100 per cent variable bonus payout for employees for the December quarter in a bid to contain rising attrition. Another IT outsourcer HCL Tech recently decided to reward 130 top performing employees with Mercedes cars or all-expenses-paid foreign holidays, a top official of the company told NDTV.
HCL Tech has instituted a 'CEO Club' to recognise individuals who had made significant contribution to the success of the company. Last year too, those chosen for the CEO Club at HCL Tech got Mercedes cars as reward for their performance.
The announcement of 100 per cent variable bonus at Infosys comes at a time when the outsourcer is grappling with high attrition rate. "We have made 100 per cent variable payout for Q3 and have seen a further decline in attrition as a result of multiple initiatives taken over the last few quarters," said Infosys chief operating officer UB Pravin Rao.
The attrition rate at Infosys on an annualized basis stood at 20.4 per cent for the quarter ended December 2014, slightly higher than 20.1 per cent registered in the July-September 2014 quarter.
Over the last few quarters, Infosys has taken several steps to control its high attrition. It is training more employees in areas like design thinking and artificial intelligence. The company has also partnered with Stanford Global School of Business for an executive education programme. This initiative will include 200 executives.