A Research Project Report on Employee Compensation and Rewards

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A progressive performance management (PM) and reward management (RM) system promotes organizational growth, employee growth and an opportunity for each employee to earn more. It is essentially about developing a performance culture. The foundation of a progressive PM and RM system rests on alignment of employee actions and the outcomes, thereof It must be mentioned here that the performance and reward are inter-related and both drive each other. The performance of an organization or its human resource could be defined in terms of the results or outputs emanating from the performance

A vital task in an organization is to define the HR performance by aligning individual KRAs (key role area) with the organizational budget. This is to ensure that the sum total of collective people performance equals the organizational performance. The next significant term in this context is ‘behavior’. It is needed to transform performance to action. Thus, directing the human behavior to achieve KRAs, through a proactive and performance linked reward system, can channelize the action of the workforce of an organization.

So, considering the above and looking at IT industry, which is service based and have employee as their biggest asset. We felt a need to examine a company like Infosys which a huge market capitalization & find out various steps that are taken by such giants to retain talent.

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OVERVIEW OF INFORMATION TECHNOLOGY INDUSTRY

India is the world’s largest sourcing destination for the information technology (IT) industry, accounting for approximately 52 per cent of the US$124-130 billion market.

The industry employs about 10 million Indians and continues to contribute significantly to the economic transformation of the country. Technology skills that are in demand include Python (Language), Django (Framework), “Ruby-on-Rails”, “Groovy” and “Grails”. Core Java skills are niche and are in demand.

Candidates with Adobe CQ5 skills and Hybrid skills are being offered attractive remuneration. These are skills that can fetch salary hikes of 30 to 35 per cent when changing jobs. We see a trend where experienced executives from large companies are joining start-ups to take on leadership roles. Job growth is also expected to significantly increase with large

Companies investing in start-ups, an increase in the number of social entrepreneurships in the technology space, and companies formed to support various government initiatives. Large companies are expected to continue to outsource short term assignments to contractors, resulting in a significant increase in the IT contract workforce.

Hiring is expected to pick up in the Social, Mobile, Analytics and Cloud area as a large number of companies are expected to tap this fertile market. Salary hikes employees can expect from their current companies range from 10 to 15 per cent and 20 to 25 per cent when changing jobs.

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OVERVIEW OF INFOSYS

Established in 1981, Infosys is a NYSE listed global consulting and IT services company with more than 197,000 employees. From a capital of US$ 250, they have grown to become a US$ 9.75 billion (LTM Q1 FY17 revenues) company with a market capitalization of approximately US$ 41.0 billion.

In journey of over 30 years, they have catalyzed some of the major changes that have led to India's emergence as the global destination for software services talent. They have pioneered the Global Delivery Model and became the first IT company from India to be listed on NASDAQ.

Infosys is a global leader in technology and consulting services. They enable clients in more than 50 countries to create and execute strategies for their digital transformation.

They help enterprises to renew and improve existing landscapes, on the basis of innovation, so their business might achieve greater efficiencies and remain relevant to the times. This renewal is complemented by simultaneously helping them explore completely new and unprecedented avenues of value creation. They ensure that this duality of renewal and embracing new things, within compatible frameworks, is embedded in a purposeful culture. Continuous learning is at the heart of this culture, so people might then be equipped with the knowledge and skills to leverage the opportunities and tackle the challenges that the future will bring. One way in which we facilitate this is by helping businesses appreciate the Design Thinking approach to problem finding and solving. In fact, we have conducted over 200 such workshops for our clients helping them imagine and prepare for the future of their aspirations.

Effort is to deliver the most extraordinary software projects, on the basis of extreme advances in technology, especially in areas such as Automation and Artificial Intelligence, to equip clients to take advantage of the best opportunities. Whether it is capturing the know-how of retiring talent into knowledge-based AI systems to facilitate smart maintenance through generations of making, building sensor-enabled connected automobiles that ‘care’ about driving safety, renewing legacy landscapes with knowledge-based automation or enabling predictive maintenance of mission-critical equipment, we want to be able to create a new future. A future where businesses can channel intelligent, open platforms, software and services to innovate and realize the advantages of digital transformation.

Amplify the potential of businesses, and their people by making powerful new technologies and concepts – from Machine Learning to Design Thinking, from pervasive connectedness to ubiquitous authoring – converge, so enterprises can thrive based on automation, innovation and knowledge. And not just solve, but uncover new challenges and new demands that lie unarticulated and are the very essence of future opportunity.

Responsibilities also extend beyond the boundaries of business. While Infosys Foundation in India creates opportunities for the underprivileged and strives to build a more equitable society, Infosys Foundation USA focuses on bridging the digital divide in America. It aims to give children, young adults, and workers across the United States the skills they need to become creators, and not just consumers, of technology. And Infosys Science Foundation awards the Infosys Prize to some of the most important research of our times in the sciences and the humanities.

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MARKET CAPITALIZATION IN YEAR 2016:

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