In a significant move to enhance employee financial stability and bolster its workforce, global IT services giant HCLTech has announced it is converting the quarterly variable pay component into a fixed part of the salary for all its employees. This major compensation restructuring was revealed alongside the company's second-quarter results for the 2026 fiscal year, which also saw the addition of nearly 3,500 employees. The dual announcements signal a strategic effort by the Noida-based firm to attract and retain top talent, particularly as the demand for skills in artificial intelligence and other emerging technologies intensifies across the industry. The policy change, effective immediately, aims to provide employees with more predictable and stable earnings, a departure from the performance-linked variable pay structure common in the tech sector. This initiative, coupled with a steady hiring pace and a focus on fresh talent, positions HCLTech to navigate the evolving landscape of the global technology market, where talent is a key differentiator.

The decision to eliminate the quarterly variable pay system and merge it with the fixed salary component is a noteworthy shift in employee compensation strategy within the competitive IT services industry.[1][2][3][4] According to HCLTech's Chief People Officer, Ram Sundararajan, the move is designed to offer greater income stability to the company's entire workforce.[4] While this change primarily benefits junior-level employees by providing them with a more predictable monthly income, it applies across the board.[5] Senior employees, however, will continue to be eligible for an annual performance bonus, maintaining a link between high-level performance and reward.[3][5] This structural reform was announced concurrently with the rollout of annual salary increments, which are scheduled to take effect from October 2025, following a similar process to the previous year.[1][2][3] By guaranteeing a larger portion of an employee's earnings, HCLTech aims to reduce financial uncertainty and enhance job satisfaction, which can be a powerful tool for workforce stabilization. This strategy comes at a time when the tech industry is grappling with high demand for skilled professionals and evolving employee expectations that prioritize security and work-life balance alongside monetary benefits.[6][7] The company's attrition rate has already seen a decline, dropping to 12.6%, indicating that its talent retention strategies may be yielding positive results.[1][3]

In parallel with its compensation overhaul, HCLTech demonstrated robust workforce growth during the second quarter ending September 30, 2025. The company reported a net addition of 3,489 employees, bringing its total global headcount to 226,640.[1][4] This expansion is significant as it includes the onboarding of 5,196 freshers, underscoring the company's commitment to building a strong talent pipeline from the ground up.[1] The focus on new graduates is part of a broader strategy to cultivate skills in-house and reduce reliance on lateral hires, which can be more expensive and competitive. This hiring trend stands against a backdrop of organizational restructuring aimed at addressing skill and location mismatches, particularly following various acquisitions.[4][8] Management has clarified that these adjustments are not about capacity reduction but about rebalancing resources to align with high-growth priorities. Furthermore, HCLTech has been consciously working to decrease its dependence on H-1B visas in the United States by strengthening its local hiring initiatives, a strategic pivot in response to changing global mobility and visa regulations.[1][9]

The strategic workforce initiatives are supported by a solid financial performance in Q2 FY26. HCLTech reported a consolidated net profit of ₹4,235 crore, which was flat compared to the same period in the previous year but represented a significant 10.2% sequential increase from the first quarter.[10][11] More impressively, the company's revenue from operations saw a year-on-year growth of 10.7%, reaching ₹31,942 crore.[2][11][12] This financial strength has allowed the company to maintain its revenue growth guidance for the fiscal year at 3% to 5% in constant currency.[10][11] A key highlight of the quarter's performance is the milestone achievement in its artificial intelligence business. For the first time, HCLTech disclosed that its advanced AI business surpassed $100 million in quarterly revenue, signaling strong demand and successful monetization of its AI-powered offerings.[10][13][9] This achievement is particularly relevant as the company's leadership has previously articulated a vision of leveraging AI to dramatically increase productivity, with the CEO challenging teams to generate double the revenue with half the workforce.[14][15] This focus on AI is not just a revenue stream but a core component of its future operational strategy.

In conclusion, HCLTech's recent moves to fix variable pay and expand its workforce are interconnected strategies aimed at fortifying its position in the global IT landscape. By ensuring a more stable and predictable salary structure, the company directly addresses a key concern for many employees, enhancing its appeal as an employer and likely contributing to lower attrition.[6][16] Simultaneously, its consistent hiring, especially of fresh talent, and strategic upskilling in high-demand areas like AI, build a resilient and future-ready workforce.[17][18] The strong financial results, particularly the landmark $100 million in quarterly AI revenue, provide both the justification and the means for these investments in human capital. For the broader AI and IT industry, HCLTech's actions may set a new precedent in compensation and talent management, potentially prompting competitors to re-evaluate their own variable pay policies as they vie for the same pool of skilled professionals. As AI continues to reshape the tech services sector, companies that can successfully blend employee-centric policies with strong financial and technological performance will be best positioned for sustained growth.