Tata Consultancy Services, the country’s leading software exporter with about 1.3 lakh employees on its pay-rolls, is going beyond variable pay and salary freeze.
It plans to put one per cent of its work-force under a performance-based scanner. If they don’t deliver, they will be out of the company.
The proposal is expected to affect 1,300 TCS workers worldwide, though the company says that such a move is routine and not linked to the current global slowdown. Some 500 people exited from the company last year under performance-based attrition, company officials said.
The company has also increased working hours for its employees from 40 per week to 45 effective April 1.
The economic slowdown has impacted businesses and made companies more vigilant about their employees’ performance than in the past.
“There is continuous emphasis on high performance in order to drive delivery excellence across TCS. In this context, employee performance is reviewed under a regular appraisal process and this results in some performance-related attrition every year. TCS offers all possible assistance through outplacement agencies, counsellors and HR consultants,” the spokesperson said.
When asked whether the number of underperformers is likely to increase, the spokesperson said it would be difficult to ascertain at present whether the number of under performers would increase further.