DXC to regularise salary increments, increase hiring
Mary E Finch, CHRO and EVP in DXC, said one of her first initiatives was the Pay the People campaign. “There was no regular pay review cycle in the company when we arrived. We fixed that immediately for our offshore talent and specifically for India in January of 2020. Following that, throughout the calendar year 2020, we continue to review the base salaries of our people. In total, we adjusted over 47,000 of our colleagues’ base pay,” she said at the company’s recent investor day.
In fiscal 2021, it has committed to paying an annual bonus to employees. “And we did that just this month to over 45,000 people, most of them not incentive-carrying people…Through these actions, we’re building trust with our people,” she said. And currently, she said, DXC is introducing a piece that was missing, the annual salary process review. “It will be predictable for them (employees)…we are ensuring that every year, our people, as a part of receiving their performance (assessment), their pay will be reviewed relative to market. This is the new DXC,” she said
She said the next area of focus would be transparency. “There was a pattern of cost-cutting, headcount reductions happening in DXC, and it caused a lot of concern for our people and a lot of anxiety. This was further compounded by the fact that nobody knew how long it would happen or why it was happening. To address this head on, Mike (Salvino, CEO) and the leadership team began global town halls for our people, regular sessions,” she said.
DXC, which had been performing poorly compared to its peers, is on a three-pronged acceleration journey – the first phase was the stabilisation phase that was completed in the 2020-21 financial year. It calls the next one the foundation phase. In the 2022 fiscal, it expects to get into the acceleration phase.
DXC has 98,000 delivery employees and 47,000 are in what it calls the global innovation and delivery centres (GIDC). The largest among them is India, followed by the Philippines, Eastern Europe, and Vietnam. “We have hired 5,000 graduates in GIDC last year and plan to hire an additional 8,000 this year,” Bagal said. In April, DXC India MD Nachiket Sukhtankar told TOI that the firm will hire 7,000 from campuses this year, 55% higher than the 4,500 it hired last year.
Vinod Bagal, EVP for global delivery, said the company has reduced operational incidents, which has brought down its service level penalties. “The number of P1 (priority 1) incidents are down 54% per quarter. Mean time to restore has been improved by 17%. These and other delivery improvements have led to a reduction in service level penalties from $20 million a quarter (at FY20) to less than $1 million in the last quarter (Q4 FY21). That’s a 96% reduction,” he said at the company’s recent investor day.
A service level agreement (SLA) defines the level of service between the company and the service provider and includes penalties if the service levels are not met.