According to media reports, India’s largest IT services provider, Tata Consultancy Services (TCS) has stopped its anniversary appraisal policy for newly joined lateral employees, effective from April 1, 2022.
Under the anniversary appraisal policy, a newly joined employee gets an appraisal when completes a full year of service in TCS from the date of joining.
Instead of this, the company will now follow the industry norm of annual salary hike. However, the anniversary hike for freshers will be as usual.
Several employees received a mail from TCS HR Department which said, “All ‘EP Hires’ or experienced professionals with an anniversary date of 1st April 2022 or after, will not receive a letter and/or increment on completion of the first year and that the first increment will be at the subsequent annual increment cycle,”
“The first increment will be at the subsequent annual increment cycle (April 2023),” It added.
Commenting on this, a TCS spokesperson said, “We have always had increments in line with industry benchmarks. Even during the pandemic, we ensured that our increment cycles were unaffected. It is incorrect to suggest otherwise. All experienced hires will be given an increase as part of the annual salary appraisal that follows their one-year anniversary.”
TCS has added 14,136 employees in the April to June quarter with a total workforce of 6,06,331 employees globally and women account for 35.5 percent of the TCS workforce, the company said in a statement.
Software giant kicking off the corporate earnings season — said its attrition rate further rose to 19.7 percent in the April to June quarter of the 2022-2023 financial year. In the previous quarter, TCS saw an attrition rate of 17.4 percent.
Milind Lakkad, Chief HR Officer, had said while announcing Q1FY23 financial results in July 2022, “following the annual compensation review, TCS employees received salary increases of 5 to 8 percent with top performers getting even bigger hikes.”
“Our empowering, performance-driven work culture is helping us attract local talent across all our key markets. Continued hiring momentum resulted in a milestone quarter, with the employee strength crossing the 600,000 mark,” he added.
Earlier, Infosys scaled back the average variable payout of employees to about 70 percent for the June quarter amid margin squeeze and high employee costs.
On other hand, Wipro also held back the variable pay of some employees while trimming the percentage of the compensation for freshers.
Wipro will not be giving variable pay to those in Band C and above (people at the mid-manager level and above), while junior employees will receive 70 percent of their variable payout.
While Wipro did not comment on the quantum of variable payout, the company said in a statement that as per its plan, salary hikes will be rolled out from September 1 and it has completed the first cycle of its quarterly promotional cycle from July.
