Wipro links half the payout to performance

BENGALURU: India’s third largest exporter of information technology services, Wipro has implemented a new incentive structure under which half of the annual payout will depend on the performance of the individual, while the other half will be directly linked to the performance of the organisation as a whole.

HT Image

The new employees’ incentive comes into force starting this financial year.

The company said only senior level employees will be affected by this new plan. The company, however, did not quantify how many of its employees will be affected. Wipro currently employs around 172,000 people globally.

A company statement said, “The new structure has been designed to ensure that the performance of individuals and their teams contribute to the success of the organisation. This plan will further emphasise the importance of collaborative behaviour and bring teams together to work towards a common goal. In short, the plan is aimed at closely aligning the performance of an individual and his or her team with that of the larger organisation. The new plan is applicable to senior level employees.”

Earlier, incentives to senior-level employees were based on the performance in terms of revenues generated from individual customers, who come under their verticals.

Last month the company announced an average salary hike of 9.5% for employees based in India and 2% hike for those outside. Last year the company had announced a 7% salary hike for offshore employees and 2% hike for onsite people.

The company under its new CEO, Abidali Neemuchwala, who took charge in February this year, has set in motion plans to double its revenues to $15 billion by 2020.