Accenture Salary and Variable Pay Calculation

Accenture, with a forward looking logo of > above the letter T showcases that you should Try for an increment as well as a better variable pay. So, now you know why the greater than symbol is above the letter T. This interpretation of the logo was given by a trainer in Bang4 during induction. I am not sure, whether, the company would have thought the same while designing this logo. Nevertheless, it’s a good idea to motivate people.

Well let’s get to the point of salary. It is going to the campus for placements. These are the details:

It is offering a package of  3.15  to 3.3 lakh per annum in the campus. It may vary a bit from college to college. For example, it may pay a bit higher in NITs. Note that this package is given by the technical wing of Accenture. It will vary when it goes to MBA colleges and offers a different package for consultants. For the consulting workforce, it is paying 8 lakh per annum.

Accenture is one of the preferred MNC in college campus. It goes to many engineering colleges

Read: Salary and Payslip of Accenture

See the Salary Breakup below:

Now comes the variable part. This is the most confusing part.  The company’s philosophy is that Variable Pay provides you the opportunity to share in the organization’s success by earning cash compensation in addition to your fixed compensation. The differentiation in the package we offer our employees is also arrived at by these performance based variable components of our rewards framework.

Read: TCS Payslip

It is dependent upon various factors like:

A) Your rating (Individual Performance)

For freshers, the LVP will be determined based on the CCPG equivalent variable Pay for that period, which will be 8.5%

Once you get promoted to TL, then Your LVP% eligibility as a % of your FY15 fixed pay based on your most recent rating and level will be determined as per the tables below –

Table 1 (Stay at Level effective FY15):

Note: The percentage may vary depending upon the offer. For Example, the highest percentage may not be 21%. It could be 18% only

If you get promoted, then this will be the percentage:

Table 2: Applicable if promoted

B)Your billability  (Individual’s Utilization)

The purpose of this linkage is to encourage employees to charge the correct hours that they have worked; to recognize the employees who do more productive work; and hence, increase the overall chargeability of the organization. Every month, your billability is noted in the Allsec website. Utilization will be capped at maximum of 110% and minimum of 50% for LVP calculations

Example of H1 payout calculation

FY15 Fixed Pay (FY15 FP): Rs. 10000 p.a.

FY12 rating communicated in August, 2015: CSAPG

Promotion in 2015: No

Based on Table 1, LVP eligibility (LVP %): 18%

Assuming IDC multiplier for H1: 100%

Your individual utilization for the period: 100%

Assuming a target Utilization for the above period of: 95%

LVP for the period of H1=

FY15 FP * LVP % * IDC multiplier * (Individual Utilization % / Target Utilization %) * Tenure in IDC Solutions Offshore

Thus LVP for the period of H1 2015 = (Rs, 10000 * 18% * 100%* (100% / 95%)) * (Number of days in Services/365)

Note:

• The above illustration is for an employee who has been in IDC solutions offshore for the entire period of payout
• For employees who have been on GCP, LoA without pay or for Workforce/ Country transfers, new joiners, the LVP will be prorated based on their actual tenure in IDC Solutions Offshore during the period for which LVP is being paid out.
• The LVP will be paid, provided you are on the rolls of the company at the time of disbursement, and will be subject to appropriate withholdings and tax deductions as per the applicable policies and laws.

Target Utilization:

The target individual utilization is 95%. The target individual utilization is set so as to allow for some time towards activities that do not yield individual utilization but are important to the organization, like, say, imparting/ attending training.

For example, if based on the relevant rating and company multiplier only, an employee were to get Rs. 100 as LVP; and the employee had a YTD individual utilization of 105% at the time of payout, then the final amount payable to the employee would be = Rs 100 (based on rating and company multiplier only) x 105/95 (based on actual individual utilization v/s target) = Rs 110.5

Read: Salary and change in Notice Period, Appraisal in Accenture

C) Company’s performance

Your LVP eligibility will be multiplied by the IDC multiplier to arrive at the actual payout for a period. IDC multiplier is based on IDC performance which is determined by key business performance metrics. The IDC multiplier is announced every 6 months and will be communicated to you before each payout cycle.

The variable pay varies from 15% to 18%. It is solely dependent upon your rating and current pay.

The funny thing is that even if you are 100% billable, the billability will show as 95%

The payout is done twice in a year. When it is done, the factor will be calculated as shown below.

Based on the factors mentioned above, your LVP will be paid out as follows:

Also note that The Company may, at any time and in its sole and absolute discretion, amend, suspend, vary and modify any of the terms and conditions of the Variable Pay guidelines.

Clarification on variable pay

Q. Why is LVP linked to individual utilization?

A. For our strategic industrialization programme to succeed it is necessary that we estimate our work right and for that our people need to charge in all the hours that they have worked for.

This helps redistribute from within the same rewards pool in a manner that people get rewarded for every hour of productive work that they do and that people who do more productive work get more reward.

Q. Which career levels and groups are covered and in scope of LVP?

A. The LVP plan is for IDC employees at the career levels of SM and below, except for.

i) Employees in Services workforce in IDC and employees on GCP

ii) ASEs < 12 months from their date of joining will get a default ‘at target’ individual utilization

iii) Similarly, people in groups like Internal, PMO, BizOps, Capability, Mobilization/CSO, Solution Architect, DP/DEx, M&O will also get a default ‘at target’ individual utilization

Q. What if others (people not in those functions) did work of DEx, Capability, etc.? Would they get default individual utilization for the time charged to these functions?

A. All WBSes are linked in a manner to provide the extent of individual utilization.. Hence if a person on a project spent time on DEx activities and charged time to the right WBSe provided by DEx team, he/she would earn the default ‘at target’ individual utilization for that time. If a person on bench worked on asset development with Capability/CIO and charged time to the WBSe provided by Capability/CIO, he/she would earn the default ‘at target’ individual utilization for that time.

It is for the budget or WBSe owners to be accountable for the organizationally valuable outcomes that result out of others (not in their functions) using their WBSe and burning their budgets.

Q. What happens if people spend part of the year in, say, Capability, and another part in a client project?

A. At the time of payout, all our employees would have a YTD individual utilization % for the relevant period in consideration. And this % v/s target would be linked to the payout.

The YTD individual utilization % at the time of payout would be based on where an employee charged each day of his/her time to in the relevant preceding period. So if an employee charged time to Capability for some days/months and the rest to a client project, the YTD individual utilization would be a combination of default ‘at target’ individual utilization for the days/months in Capability and the actual individual utilization for the remaining days/months in a client project.

The same holds true, say, for ASEs who are in the default ‘at target’ utilization category for part of the preceding period and are in the actual utilization category for the remaining preceding period.

For people repatriating from GCP into IDC, their individual utilization calculation will begin on the day after they return. The LVP will be based on the YTD individual utilization at the time of payout, Variable pay for GCP tenure is paid separately to employees in the country they were in, so LVP payout the tenure in IDC will be counted.

There are systems to track individual utilization on a daily basis, so in-out movements from-to groups would not be a problem to handle.

Q. Are there ‘floor protecting against loss’ and ‘ceiling preventing against gain’ concepts in the plan?

A. Yes. People can not lose LVP any further for going down below 50% individual utilization (floor), and they can not earn LVP any further for going above 110% individual utilization (ceiling). If an employee has 40% YTD individual utilization at the time of LVP payout, we would still treat it as 50% YTD individual utilization. Similarly, if an employee has 120% YTD individual utilization at the time of LVP payout, we would still treat it as 110% YTD individual utilization.

Q. Would vacation negatively impact an employee’s utilization?

A. No. Time on vacation, sick leave, fixed/floating holidays, maternity leave, paternity leave, and bereavement leave do not count in the numerator or the denominator while calculating utilization.

For days on LOA, we don’t pay any LVP anyways.

Q. Can you give an example of Utilization calculation?

See the table below. Note that utilization details are updated on the Allsec portal every month and all individuals are expected to check and   highlight any concerns/ clarifications to the idc.yield.management at the earliest and no later than 3 months from the date of   publishing. It is important that you review this number going forward on a regular basis and highlight changes if any in a   timely manner

Table 3: Sample Utilization Chart

• Utilization% also includes activities considered as “Contributors for Utilization”.
• Exempt resources are defaulted to 95% Utilization for the exempt period.

For any queries, you may reach out to your People Advisor or to your Supervisor. The information might change when the new appraisal comes in effect. So, check with your HR for the updated information.