Infosys Plans Better Hikes For Performers

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[color=#3F3F3F][font=georgia][size=4]BANGALORE: [/size][/font][/color][url="http://economictimes.indiatimes.com/infosys-technologies-ltd/stocks/companyid-10960.cms"]Infosys[/url][color=#3F3F3F][font=georgia][size=4] is drawing up plans to tilt the scales in favour of top performers, part of efforts to revitalise the workforce after NR[/size][/font][/color][url="http://timesofindia.indiatimes.com/topic/Narayana-Murthy"]Narayana Murthy[/url][color=#3F3F3F][font=georgia][size=4] returned as its chairman on June 1. [/size][/font][/color]

[color=#3F3F3F][font=georgia][size=4]According to company executives briefed about Murthy's thinking, the emphasis on employee performance as a vital differentiator is linked to a broader effort to revive a culture of meritocracy in the company that has underperformed the industry for two years. "The differential between high-performers and non-performers will increase. Variable pay will be one mechanism through which this will be achieved," said a person aware of Murthy's plans. [/size][/font][/color]

[color=#3F3F3F][font=georgia][size=4]Murthy, 66, returned as executive chairman of Infosys following a request from the company's board, which was under pressure from investors and analysts fretting about the company's troubles. Infosys grew at half the pace of the broader industry in 2012-13 and has admitted that it will lag rivals this year too. [/size][/font][/color]

[color=#3F3F3F][font=georgia][size=4]At present, employees with the top ratings receive 50-90% of their variable salary while the lowest-rated ones get only up to 30%. Typically, 10-25% of an executive's compensation can be variable, depending on seniority. [/size][/font][/color]

[color=#3F3F3F][font=georgia][size=4]Besides individual performance, the relative performance of the business unit also becomes a key deciding factor. [/size][/font][/color]

[color=#3F3F3F][font=georgia][size=4]Infosys declined comment for the report. Among rivals, [/size][/font][/color][url="http://timesofindia.indiatimes.com/topic/Cognizant-Technology-Solutions"]Cognizant Technology Solutions[/url][color=#3F3F3F][font=georgia][size=4] rewards high-performers with bonuses while [/size][/font][/color][url="http://economictimes.indiatimes.com/tata-consultancy-services-ltd/stocks/companyid-8345.cms"]Tata Consultancy Services[/url][color=#3F3F3F][font=georgia][size=4] hands out plum overseas assignments and learning opportunities.[/size][/font][/color]