HCLTech to Implement  Changes in HR Policy

HCL Technologies a leading name in the IT services and consulting industry, has recently made some modifications to its HR policy that primarily involves the revision of the Engagement Performance Bonus (EPB) policy. The move is taken to ensure that the company operates in a sustainable and profitable manner. But, the revised policy of  Engagement Performance Bonus (EPB) which forms a part of employee pay will involve a reduction in the salaries of certain employees.

A transition will be made from a monthly EPB payout to a quarterly disbursement. It is a trial to make an alignment between the company’s business performance and payment structure. As per HCL technologies, the revamped policy will allow them to better optimization of resources. It is speculated that there may be a reduction of approximately 5% of the salary of the employees who fall under it.

The changes made by HCLTech in response to the rapidly evolving IT industry and challenging market conditions are receiving mixed feedback as some of the affected employees voiced against it as it will affect their finances while some are in support of the company’s decision to adapt its HR policy.

Why is there a need for revamped HR Policy at HCLTech ?

HCLTech itself has said that these changes are necessary to “ensure that we are operating in a sustainable and profitable manner”. It is evident that these changes are being made under the influence of mounting pressure on the IT sector which is being driven by a number of factors such as global economic decline, increasing competition, and automation. These factors can be seen as some major reasons for cost-cutting in IT companies.

These changes are not only occurring in HCLTech but most of the other prominent IT companies such as Infosys or Wipro also have made comparable adjustments in their policies in recent times. Companies are compelled to revise their policies or trying different other ways of cost reduction to remain in competition while enhancing their operational efficiency at the same time.

Details of the revised HCLTech HR Policy

• According to the new policy, EPB will now be paid on a quarterly basis instead of monthly.
• The employees who are on the bench will not be able to receive EPB.
• The average reduction is estimated to be approximately 5%.

Now it remains to be seen how impactful these revisions are going to be. And, if the changes made to HCLTech’s HR policy will help improve the company’s performance in the long run.

Conclusion

As the IT industry remains under continuous adaptation and evolution these decisions are clear indications that the IT industry is facing challenging times. It can be anticipated that in coming future more companies will undertake similar measures to realign their HR policies with the changing landscape. The company's ability to balance cost reduction with employee satisfaction and motivation will play a vital role in navigating these challenging times successfully.

The article has been written by Punam Singh