Satyam Computer is launching a Virtual Pool Programme (VPP) for over 7000 employees. This is a one-time programme, effective from June 2009. This is an innovative way to retain talent as well as address cost-cutting issues.

However, the excess 10,000 employees, who feared retrenchment, can breathe easy as Satyam’s new owner, Tech Mahindra has said that there will be no lay-offs. The excess employees would be put into a different pool. They would be paid basic salary, provident fund, and medical insurance. They would be considered for regular employment at a later phase.

VPP is applicable to those in India. The programme enables the employees to take time-off from their jobs on a lower pay scale. This is for up to six months during which they would continue to keep their employment with the company. Approximately over 7000 employees would be a part of VPP. Employees who have not been billable for three months or more would be covered under this programme.

Kiran Karnik, Satyam Board Chairman, said that the programme highlights the innovative way to retain talent in these times of economic slowdown. The unwanted string of events at Satyam and the current economic status have combined to make situation difficult for Satyam. These are testing times for the company. The retained talent should be trained further, while ensuring financial feasibility.