TCS increments alert: Tata Consultancy Services (TCS), India’s largest IT services company, on Friday said it will roll out double digit hikes for high performers, starting April. Milind Lakkad, Chief HR Officer said, “We are pleased to announce the annual increments for our workforce, as we have done consistently every year, with top performers receiving double digit hikes.”
According to Lakkad, salary increments will range from 4.5% to 7% based on performance, with high-performers receiving double-digit hikes. The company aims to hire around 40,000 freshers this year, with most already on-boarded from previous cycles, states an ET report.
TCS saw a decrease in hiring during the last quarter of the fiscal year. The company’s headcount dropped by 1,759 employees, bringing the total to 601,546 at the end of the year. This follows a previous decline of 5,680 employees in the third quarter. Despite this, TCS ended the fiscal year with 13,249 fewer employees compared to the previous year, while registering a 3.5% growth in revenue.
Also Read | TCS Q4 results: Tata Consultancy Services reports PAT of Rs 12,434 crore; beats estimates
“The reduced attrition at 12.5%, enthusiastic response to our campus hiring, increased customer visits and employees returning to the office have resulted in great vibrancy in our delivery centres and elevated morale of our associates,” Lakkad said.
TCS is actively recruiting from priority campuses and conducting national qualifier tests to bring in a significant number of new hires, according to Lakkad.
Additionally, TCS said that its chief operating officer, N. Ganapathy Subramaniam will be retiring, after 40 years of service. His responsibilities will be redistributed among senior colleagues as TCS does not plan an immediate replacement for the COO role.
Similar to its industry counterparts, TCS has observed a consistent decrease in headcount over recent quarters, with a significant drop of 6,333 in the second quarter of the fiscal year. K Krithivasan, TCS’s chief executive, highlighted that revenue growth and headcount are not directly correlated, emphasizing the company’s focus on efficiency and optimized deployment of associates. Krithivasan noted that the company’s ongoing training process for new hires typically takes six to nine months before deployment.
As per Teamlease Digital, the IT sector is likely to witness a flat or negative net addition in the current fiscal year, aligning with the trend seen across major IT companies.
TCS Workforce FY 2023-24 Highlights:
According to Lakkad, salary increments will range from 4.5% to 7% based on performance, with high-performers receiving double-digit hikes. The company aims to hire around 40,000 freshers this year, with most already on-boarded from previous cycles, states an ET report.
Expand
TCS saw a decrease in hiring during the last quarter of the fiscal year. The company’s headcount dropped by 1,759 employees, bringing the total to 601,546 at the end of the year. This follows a previous decline of 5,680 employees in the third quarter. Despite this, TCS ended the fiscal year with 13,249 fewer employees compared to the previous year, while registering a 3.5% growth in revenue.
Also Read | TCS Q4 results: Tata Consultancy Services reports PAT of Rs 12,434 crore; beats estimates
“The reduced attrition at 12.5%, enthusiastic response to our campus hiring, increased customer visits and employees returning to the office have resulted in great vibrancy in our delivery centres and elevated morale of our associates,” Lakkad said.
TCS is actively recruiting from priority campuses and conducting national qualifier tests to bring in a significant number of new hires, according to Lakkad.
Additionally, TCS said that its chief operating officer, N. Ganapathy Subramaniam will be retiring, after 40 years of service. His responsibilities will be redistributed among senior colleagues as TCS does not plan an immediate replacement for the COO role.
Expand
As per Teamlease Digital, the IT sector is likely to witness a flat or negative net addition in the current fiscal year, aligning with the trend seen across major IT companies.
TCS Workforce FY 2023-24 Highlights:
- Employee Headcount: 601,546
- Diversity: 152 nationalities; 35.6% women
- IT Services Attrition (LTM): 12.5%
Tata Consultancy Services (TCS) announced that the company will link hikes and variable payouts for employees to compliance with its return-to-office (RTO) mandate. The new rule has been communicated by unit heads to their team. As per the rule, grades which are necessary for promotions will be based on employees’ track record of working from the office, a TOI report stated.
The company is also offering digital compensation to freshers who have finished their assigned courses which make them eligible for higher salaries beyond their annual compensation of ₹3 lakh, the report claimed.
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Compliance with the return-to-office policy will be a prerequisite for approval of these cases, it added as TCS requires employees to return to the office for all five days of the week, ending work from home for certain teams.
What has TCS told employees on work from office?
TCS has instructed employees to go to their designated offices rather than choosing those closer to their homes while the HR department is granting limited work from home on a case-by-case basis.
Do other IT firms have the same rule?
Several IT firms including Infosys and Wipro have made it mandatory for employees to work from office. Wipro has unveiled a mandatory hybrid work policy which requires employees to be physically present in the office for a minimum of three days per week.
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