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TCS to reduce the salary of campus recruits
By siliconindia
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Wednesday, 16 September 2009, 20:57 IST |
67 Comments
5,000 per month or 19-20 percent of the total annual pay packet of 3.1 lakh - offered to them during their in-campus recruitment.
Ajoy Mukherjee, Global Head, Human Resources, TCS said, "As part of a compensation restructuring exercise, freshers joining the company this quarter onwards will not be eligible for variable pay during the training period. Restructuring trainees' salaries is being done from the point of view of productivity so that they get accustomed to the fact that variable pay depends on performance."
Last year, the company had made campus offers to 24,885 students. Of this, the company is expecting around 19,000-20,000 students to join. Going by this number, the company is expected to save around 10 crore per month by altering the variable part of salary for trainees. For six months, the savings would be 60 crore. Mukherjee said, "The company would be able to take on board all campus recruits in the current fiscal itself."
However, other IT giants like Infosys and Wipro are not fiddling with the compensation package of trainees. Infosys decides on the variables based on a test conducted after 18 weeks of initial training. Mohandas Pai, HR head, Infosys said, "Those who score four out of five are entitled to variables." Wipro claims to pay the variable part to its employees from the beginning of the training period.
Now, it would be interesting to see, what steps these companies take for campus recruitment in next fiscal. TCS is yet to decide on how these campus offers would be made in the next fiscal.