In order to keep its employees onboard, India’s largest IT firm, Tata Consultancy Services Ltd (TCS) is all set to give its top-performing employees a 12-15% salary hike.
Pay Hikes For TCS All Employees
Basically, the IT service provider is hoping that the job market’s slowdown will bring attrition down from 20% at present to 13-14% in the second half of the fiscal year.
Besides this hike, the IT major is also considering a hike in the base salaries of campus recruits.
A decision which has the power to prompt rivals such as Infosys, HCL Technologies, and Wipro to follow suit.
The chief human resources officer of TCS, Milind Lakkad said, “For high performers, we are looking into [pay hikes in] the 12-15% range. Everybody else, basically, we have 8%, 5%, and 1.5% for those who are not performing,”.
The top performers in junior cadres received an 11% bonus last year.
At the same time, the senior cadres received a lower one.
We shouldn’t forget that during the first quarter of January-March, junior executives were granted a 100% bonus additionally.
Similarly, TCS hired 44,000 from campuses last fiscal year despite a shrinking job market in the IT sector.
The Mumbai headquarter company plans to hire another 40,000 in the current fiscal.
Slowdown Affecting Attrition Rate
Considering the ongoing slowdown in the IT industry, Lakkad expects attrition to fall from 20.1% in the March quarter to pre-pandemic levels in H2FY24.
He noted, “It will come down from 20%…pre-pandemic level, it will go to 13-14%,”.
Earlier, the IT giant witnessed an attrition of 21.3% in the December quarter as IT services companies poached employees to meet their growth needs when businesses reopened post-pandemic.
The global recession and geopolitical hurdles have led to layoffs and hiring freezes in many global firms over the last two-three quarters.
Other IT firms such as Infosys saw an attrition of 20.9% in the March quarter, down from 24.3% in the December quarter.
It majors like Wipro and HCL Technologies will announce their results on 27 and 20 April, respectively.
In the meantime, TCS has seen a drop in counter-offers and negotiations as well.
Lakkad said, “the instant gratification that happened in the last two years has come down significantly, if not stopped. It is the right thing for everybody—more for the people, than the organization. Organizations will manage if we have managed what happened in the last two years reasonably well,”.
By the end of March quarter, TCS had a net addition of 821 employees reportedly.
