Wipro Will Roll Out A New Incentive Structure

Wipro will roll out a new incentive structure for sales and delivery staff wipro_Logoeffective April 1. It will move away from gross targets to incremental growth that individuals bring. “We have to focus on sharper target identification and sharper accountability,” said Wipro CEO T K Kurien at the India Analyst Day in Bengaluru.

The company had moved its entire incentive pay from gross targets to incremental growth. “If you are a sales guy, you will not make money till you show incremental growth. If you are a delivery guy, your variable pay is linked to how you show incremental growth. It is a big mindset change. The account manager is no longer responsible for the overall growth target, he is also responsible for the service-line growth,” he said.

Kurien said performance and meritocracy would differentiate top talent from the rest of the organization. “In the past all our promotional policies and compensation used to be based upon how many years you have spent on a particular job and what is your rank in the company. A VP was paid more than a general manager, while a GM was paid more than a manager. In the future, compensation will be based on the value that a person brings in mostly from technology and businesses,”

Wipro had said last year that it would give significantly higher increments to top performers and to those with hot skills such as big data, analytics and open source. IT services companies are moving to provide higher-end services and this is driving the need to create a differentiated compensation structure.

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