The document discusses the compensation policy of Tata Consultancy Services (TCS). It begins with defining compensation and compensation management. TCS's compensation policy is based on an Economic Value Added model, which measures operating and financial performance. Compensation at TCS has both fixed and variable components, with the variable amount determined by business unit, corporate, and individual performance. Recognition, incentives, and cafeteria benefits are used to attract and retain employees. The conclusion restates that compensation policies aim to recruit and reward high performers through market-based salaries and performance-linked bonuses and incentives.

1. Compensation Policy of
Tata Consultancy Services
By HUMSI SINGH

2. The presentation covers the following topics:
• Meaning and Introduction of Compensation
• Introduction of TCS
• Compensation Policy of the company
• Conclusion

3.  What is Compensation?
 What is Compensation Management?
 What is Compensation Policy?
Compensation is the monetary
benefit which is given to an
employee or worker giving their
services to an
organization. Compensation inclu
des components like salary,
wages, bonuses etc.
Compensation management is the
practice of the organization that
involves giving monetary as well as
non-monetary rewards to the
employees, in order to compensate for
the time they allocate to their job.
Compensation management involves
“maximizing the return on human
capital.”
Compensation Policies are
the collection of rules that
govern the calculation of
salary and benefit
entitlement for all individuals
working in an organisation.

4. What isTCS?
• Tata Consultancy Services Limited (TCS) is an
Indian multinational information
technology (IT) service and consulting company
headquartered in Mumbai, Maharashtra, India. It is a
subsidiary of Tata Group and operates in 149
locations across 46 countries.
• TCS is the largest Indian company by market
capitalization.
• It is the world's largest IT services provider.

5. Founded 1968; 51 years ago
Founder Tata Sons and F.C. Kohli
Area served Worldwide
Key people Natarajan Chandrasekaran
(Chairman)
Rajesh Gopinathan
(MD & CEO)
Operating
Profit
US$5.3 billion (2019)
Net Income US$4.5 billion (2019)
Total Assets US$16.6 billion (2019)
Total Equity US$13.2 billion (2019)
Number of
Employees
4,36,641 (Jun, 2019)
Parent Tata Group

6. Compensation Policy
ofTCS
• The primary concept or theory behind the determination of Compensation policy
is the Economic Value Added (EVA) Model.
• TCS introduced Management consultancy division and adopted the EVA in 1999.
• This model measured operating and financial performance of the organization.
• There were strict basis on which the compensation was determined for the
employees.
• The aim was to assess contribution of the employees to the organization.
• Fixed and variable pay components were determined.
• The variable part of the salary was arrived after considering business unit EVA, corporate
EVA, and also individual performance EVA.

8. Pay and Performance relationship
amongstTCS employees.
Employee
expects pay
Performance is
evaluated
Employee
considers equity
of performance
and pay
Employee
performs
job
Feedback
to
employees
Employees
set new
expectation
s based on
previous
experience

9. Highlights of the Compensation Policy
• Recognition of employee contribution was a major tool. Enjoying the
work, job rotation, expression of appreciation, bigger desk, note of
thanks, and challenging work assignments were the important ones.
• Individual and group incentives were created to increase team work,
reduce supervision, shorter training time etc.
• Treats, knick-knacks, social acknowledgements, awards, tokens, on
the job training, and good office environment became the plus point
for the organization.
• Another attraction became the cafeteria benefit plan, wherein,
employees are given choice to select benefits by assessing their needs
and preferences were introduced. For example: An employee choice
health care insurance and other life insurance.

10. TCS salary information chart

12. Conclusion
• Recruitment and retention of qualified employees is a common goal
shared by many employers. To some extent, the availability and cost
of qualified applicants for open positions is determined by market
factors beyond the control of the employer. Compensation may also
be used as a reward for exceptional job performance. Examples of
such plans include: bonuses, commissions, stock, profit sharing, gain
sharing. This is what we saw in the case of TCS.

13. ThankYou!!!