Mostly Hybrid but twist in the way of imposing it: HCLTECH

HCLTech, India’s third-largest software exporter, is introducing a new policy linking employee leaves to office attendance

HCLTech says that the Employees must be in the office three days a week, totalling 12 days a month, or face deductions in their leave balance for every day they fall short. This policy, aimed at encouraging a return to the office post-pandemic, was communicated via email and is already in effect. Employees with less than three years at HCLTech receive 18 annual and one personal leave, while those over three years receive 20 and two yearly leaves. An HCLTech spokesperson emphasized that their hybrid work policy offers flexibility, especially for middle and senior management. They must work from the office three days a week to foster collaboration, while other employees follow work arrangements as needed to meet client commitments. CEO and MD C Vijayakumar clarified that, unlike Tata Consultancy Services (TCS), HCLTech does not plan to link variable compensation with office attendance.

However, he noted that returning to the office varies by business line, with some necessitating in-office work more than others. The shift to office-based work aims to enhance social capital among new employees and improve project collaboration. This move follows TCS’s decision to tie quarterly variable pay to office attendance, requiring at least 60 per cent attendance to qualify for the payout, with higher attendance percentages earning more excellent variable pay. This policy has resulted in nearly 70% of TCS employees returning to the office. Despite HCLTech’s hybrid model, the company mandates a three-day office work week, unlike TCS’s five-day requirement. The quarterly variable pay at HCLTech, applicable only to junior-level employees, constitutes less than 3 per cent of annual compensation. For the June quarter, HCLTech reported a 20 per cent year-on-year net profit increase to Rs 4,257 crore, with revenues rising 6.7 per cent to Rs 28,057 crore.