Salary increments will range from 4.5% to 7% based on performance.
India’s leading IT services provider, Tata Consultancy Services (TCS), announced its plans to implement double-digit salary hikes for high-performing employees starting April. Milind Lakkad, Chief HR Officer, expressed satisfaction in continuing the tradition of annual increments, with top performers set to receive significant raises.
Lakkad disclosed that salary increases would range between 4.5% to 7%, contingent upon individual performance, with exceptional performers earning double-digit raises. Despite experiencing a decline in hiring activity during the last quarter of the fiscal year, TCS aims to onboard approximately 40,000 freshers this year, leveraging candidates from previous cycles.
TCS observed a reduction in headcount by 1,759 employees in the last quarter, following a previous decline of 5,680 in the third quarter, resulting in a total decrease of 13,249 employees compared to the previous year. Nevertheless, the company managed to achieve a 3.5% revenue growth despite the decrease in headcount.
Also Read: Dune 2: OTT Release Date – Will Chalamet and Zendaya’s Sci-Fi Adventure Stream on Netflix and Max?
Lakkad attributed the reduced attrition rate of 12.5%, robust campus hiring efforts, increased client engagement, and employees’ gradual return to office premises as factors contributing to enhanced morale and operational vibrancy within TCS.
Furthermore, TCS disclosed the retirement of its Chief Operating Officer, N. Ganapathy Subramaniam, after 40 years of service. His responsibilities will be redistributed among senior colleagues, with no immediate plans for a replacement in the COO role.
Similar to industry trends, TCS experienced a consistent decline in headcount over recent quarters, with a notable decrease of 6,333 in the second quarter of the fiscal year. K Krithivasan, TCS’s Chief Executive, emphasized that revenue growth and headcount are not directly correlated, underscoring the company’s focus on efficiency and optimal deployment of associates. Krithivasan highlighted the company’s extensive training process for new hires, typically spanning six to nine months before deployment.
Amidst industry forecasts suggesting a flat or negative net addition in the IT sector for the current fiscal year, TCS remains aligned with major IT companies in navigating challenges and optimizing operations.
