More Than 1 Lakh TCS Employees Resigned In Last 365 Days; 14,000 New Employees Added
Attrition rate in IT giant TCS has jumped to 19.7 percent in the last 12 months.
It is the highest in the last six quarters.
In the March quarter the rate was 17.4 percent.
Its workforce strength breached the 6 lakh mark, standing at 606,331
It also continues to be very diverse, comprising 153 nationalities and women making up 35.5 per cent.
It also made a net addition of 14,136 employees during the quarter.
This is significant since net headcount addition is believed by many to be a leading indicator of future demand.
However this figure is much lower than 35,209 employees in the previous quarter.
CEO explains the situation
TCS CEO Rajesh Gopinathan commented that attrition has to be considered from a seasonality perspective.
The company’s attrition also includes the number of junior employees leaving for higher studies.
He did acknowledge that attrition has not yet flattened and that it will in the second half when the firm will see “meaningful moderation” of it.
Gopinathan added that both the supply and demand side are easing up with talent coming from outside the immediate industry.
Attracting and developing talent
Milind Lakkad, Chief HR Officer, said that its hiring momentum continued and the company has been able to attract local talent thanks to its “empowering, performance-driven work culture”.
He said that the firm’s investment in strategic talent development initiatives and linking learning to career development have energised its workforce.
Along the same lines, employees received salary increases of 5-8%, with top performers getting even bigger hikes.
In FY22, the company had started its hiring target from 40,000 and ended the year by adding 100,000 freshers.
TCS management said it has a good number of people to manage demand and if needed, it can quickly ramp up its numbers.
N Ganapathy Subramaniam, chief operating officer and executive director, said normally in Q1, TCS hires more laterals as contracts are in ramp up positions.