January 6, 2009

Oracle India planning for Hour-based pay

One of the world’s largest software products company Oracle is known to have begun linking the payment of its 20,000-odd employees in India with the productive hours they spend in the company. This has given way to salary cuts, ranging between 10 and 50 per cent.

Company sources explain that if an employee is a billable resource for 15 days a month, he will be paid in full for that period while for the rest of the period he will be paid a “nominal” amount.

The company management has asked all non-billable employees to involve themselves in internal projects, failing which they would be asked to explore opportunities outside the company. This practice was initially implemented for the employees of Oracle Financial Services Software (i-Flex Solutions).

Though this decision has not been directly communicated to the employees in writing, but the team leaders and project managers in different centers have been informed about the decision orally.

Oracle does not want to take any extreme steps like other IT companies.

Sources within the company add that Oracle India has also minimized costs on various other benefits for e.g., travel costs and free snacks.


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