The Ministry of Education (MoE) has raised concerns over a substantial variable pay package received by IIM Rohtak Director Dheeraj Sharma, prompting an investigation and a request for an explanation from the institute. The internal audit wing found the payment to be significantly higher than allowed and the procedure adopted for its disbursement to be flawed.
A Deloitte India survey highlights key trends in campus compensation: 5.2% CAGR growth over five years, increasing variable pay weightage, growing prevalence of joining bonuses, declining internships, and reduced compensation expectations among students. Notably, organizations prefer experienced hires and emphasize skill-based hiring with premiums for AI/ML, robotics, and sustainability.
Tata Consultancy Services (TCS) has implemented a revised variable pay policy that links variable pay to physical presence in the office. The policy requires employees to maintain a minimum office attendance of 60% to qualify for any variable pay for the quarter. Attendance between 60-75% will yield a reduced variable pay of 50%, while those attending 75-85% of the time will be eligible for 75% of the variable pay. Employees achieving an office compliance level above 85% will receive their full variable pay entitlement.
TCS has implemented stricter attendance requirements for employees, linking performance bonuses to office attendance. Employees with less than 60% attendance or less than three days in office per week will receive no performance bonus. Those with 75% to 85% attendance will receive 75% of the bonus, and those between 60% and 75% will receive half the bonus. TCS has also made it mandatory for employees to work 45 hours a week in the office.
