HCLTech Introduces Policy Linking Employee Leaves to Office Attendance
One of the best software businesses in India, HCLTech, has developed a new policy linking employee rights for leave to their attendance in the workplace. Part of the company’s larger efforts to get staff members back into the office following the protracted period of remote work during the COVID-19 epidemic, this project
Employees under this new policy must show up in the office at least three days a week and minimum twelve days a month. Should they fall short of this criteria, their absence would be deducted daily. Employees received this policy—which went into effect this week—by email. One employee who wanted to remain anonymous said that additional absences would cause salary loss after their leave balance runs out.
Earlier this year, HCLTech changed to a hybrid work paradigm asking staff members to come into the office three days a week. According to a corporate spokesman, this hybrid approach offers flexibility—especially for middle and top management, who can select their office days to foster teamwork. For other staff members, their managers decide on their working schedules depending on customer needs.
C Vijayakumar, CEO and MD of HCLTech, pointed out that business line varies even if the return to office is rising. While some sectors would benefit more from in-person cooperation, others can operate comfortably remotely. Unlike Tata Consultancy Services (TCS), he clarified, HCLTech does not want to tie office attendance to variable pay.
Vijayakumar underlined in a recent interview the advantages of going back to the office, especially for new hires who joined during the epidemic and have never seen office culture. He thinks that working in the workplace might help employees to develop social capital and improve cooperation.
TCS had followed a policy tying office attendance to quarterly variable pay before HCLTech made its declaration. Less than 60% attendance employees were not entitled for this compensation; regular non-compliance can result in disciplinary action. About seventy percent of TCS staff members have been effectively returned to the office by this policy.
Compared to TCS’s five-day mandate, HCLTech’s policy keeps a hybrid approach and calls just three days in the office. Furthermore, the quarterly variable pay at HCLTech mostly affects junior-level staff and is less than 3% of an individual’s annual pay.
HCLTech has recorded good financial performance in spite of these developments. The company’s net profit grew 20% year-on-year to Rs 4,257 crore for the June quarter, while operational income climbed by 6.7% to Rs 28,057 crore.
Reflecting larger trends in the IT sector, this new policy seeks to strike flexibility with the advantages of in-office cooperation as HCLTech negotiates the post-pandemic work environment.