An Indian multinational information technology services and consulting company, Tata Consultancy Services (TCS) announced variable pay and increments to its existing staff earlier.
TCS is also working towards reducing the pay disparity in employees internally and is giving them a chance to double their salaries
The company has over 6 lakh employees globally and its strategy is to invest in their in-house talent and give them a chance to shine rather than spending in offering massive increments to freshers.
Milind Lakkad, Chief HR Officer, TCS, talking about the company’s plans to reduce pay disparity among employees, said, “Those two years of instant gratification were definitely there.”
“While we lost people because they were getting X percent more somewhere, we also hired people, not with that kind of increase but there was some increase definitely.”
“We also ensured that internally people get the opportunity to upgrade their compensation through various initiatives, to reduce disparity internally.”
“Over the years, while these employees have added a significant value to the company, some of them may have lost it on the market relevance skills, which are required today”, he added.
TCS Initiatives
The company is Upgrading Skills, TCS invites international business schools to train their employees through experiential learning.
The company works on a talent development programme, Elevate, which is often in the news. Around 400,000 employees have registered for the programme and their experience ranges from 0-12 years.
About 15 percent of them have been certified and deployed in new roles.
Company Employees Headcount
Tata Consultancy Services’ headcount stood at 614,795. The attrition for every quarter has seen a deep fall to 20.1 percent, continuing its downward trend from last quarter’s.
TCS has reported attrition in Q3FY23 stood at 21.3 percent, a slight decline from 21.5 percent in Q2FY23 on a last-twelve-month basis. The company has started to slow down hiring and focus on improving employee utilization rates.
The company added 22,600 employees during FY23. There has been a steep decrease as compared to its net addition in FY22. In the previous year, it had added 103,546 employees on a net basis.
TCS has already rolled out offers to 46,000 freshers for the FY24, at a time when the industry has been marred by onboarding delays in a challenging macroeconomic climate.
