Satyam Computer Services (rebranded as Mahindra Satyam) today announced that it will restore variable pay to all its employees. The decision will win the hearts of all Satyam’s employees, who were devastated by the scam. After the relief that came with Tech Mahindra acquiring the company, getting back their monetary benefits will be a boost. The decision comes just before the festival season, in time for employees to go out and spend, assured that their income will be higher in the second half.
The company had suspended variable pay after the scam perpetrated by Satyam’s promoters came to light. The company was facing a severe cash crunch and withdrew variable pay to conserve resources. The statement says that this portion of variable pay was withdrawn in April 2009. Variable pay will be reinstated within six months effective October 2009. It appears as if the decision is with prospective effect.
The company has also reinstated the quarterly staff welfare allowance, performance-based ESOPs for middle and senior level associates and service anniversary programmes. Cash bonus for junior employees for work excellence will be reintroduced. In a statement, P Hari, chief people head, Satyam, said: “We owe our success to the unprecedented commitment to delivery excellence and support from our associates. This has been vital to our recovery”
The new acquirers are sending a message to the employees that the worst is over and that their presence is important to them. It also indicates that Satyam’s fundamentals have improved to an extent that it is in a position to give employees their due. That is a strong statement coming from the company which will be good news for shareholders too.