Infosys, the IT services multinational has awarded an average performance bonus of 80 per cent for the first quarter of fiscal year 2024-25. This is a substantial increase from the 60 per cent bonus distributed in the previous quarter.
The bonus distribution, which took place for the quarter ending on 30 June, 2024, is particularly noteworthy as it follows a 7.1 per cent increase in net profit for Infosys.
The bonuses were primarily awarded to employees of band six (E6) and below, a group that forms the majority of Infosys’ workforce. These employees are typically in roles that include software engineers, developers and other technical staff, who are crucial to the company’s operations. The 80 per cent average bonus represents a significant jump from the 60 per cent distributed at the end of the previous quarter, Q4 of FY24, which concluded on 31 March, 2024.
The company’s decision to raise the average bonus percentage underscores its commitment to rewarding employees based on their contributions to this success.
The determination of bonus percentages was closely tied to individual performance and contributions. Delivery unit heads were responsible for deciding the specific bonuses for each employee within their teams, based on the allocated budget. This approach ensured that high-performing individuals received a higher share of the bonus pool, further incentivising excellence and dedication within the workforce.
The substantial increase in performance bonuses is seen as a strategic move by Infosys to retain and motivate its employees, especially in the highly- competitive IT industry. It also serves as a recognition of the hard work and efforts put in by the employees in achieving the company’s financial targets. This pay-out is expected to positively impact employee satisfaction and engagement, which are critical for maintaining productivity and reducing attrition rates.
The boost in bonus percentages comes at a time when the IT industry is navigating various challenges, including global economic uncertainties and evolving client demands. By increasing the performance bonuses, Infosys is not only acknowledging its employees’ efforts but also strengthening its position as an employer of choice in the competitive IT landscape.