It is said that the company is also considering a hike in the base salaries of campus recruits. This move would prompt close rivals such as Infosys, HCL Technologies, and Wipro to follow the suit.
Also Read– Stock Market Updates: Sensex Tanks Over 500 pts, Nifty Below 17,700; Infosys Down 10%
New Delhi: The top-performing employees of India’s largest IT firm, Tata Consultancy Services Ltd (TCS), is set to give its top-performing employees a 12-15 per cent salary hike to keep them on board, reported Mint. This move, the company hopes, will bring attrition down from 20 per cent at present to 13-14 per cent in the second half of the fiscal year.
It is said that the company is also considering a hike in the base salaries of campus recruits. This move would prompt close rivals such as Infosys, HCL Technologies, and Wipro to follow the suit.
Also Read– Large-Cap Multibagger to Consider Stock Split, Up 110% in 1 Year
“For high performers, we are looking into [pay hikes in] the 12-15 per cent range. Everybody else, basically, we have 8 per cent, 5 per cent, and 1.5 per cent for those who are not performing,” said Milind Lakkad, chief human resources officer of TCS, as reported by Mint.
During the last appraisal cycle, top performers in junior cadres received a 11 per cent bonus, whereas those in senior cadres received a lower one. Additionally, in the first quarter of January-March, junior executives were granted a 100 per cent bonus.
Read More:- Seven Of Top-10 Most Valued Firms Climb Rs 67 cr; ICICI Bank, HDFC Bank Shine
TCS hired 44,000 via campus recruitment last fiscal even though the job market for IT sector has shrunk considerably and as per the Mint report, the company plans to hire another 40,000 in the current fiscal. TCS’ attrition rate for January-December quarter stood at 20.1 per cent on a last twelve-month (LTM) basis. During Q3, the attribution rate was 21.3 per cent.
During Q4 FY23, TCS hired only around 821 new employees in as against 35,209 employees in Q4 of FY21-22.
Read More:- TCS Salary Hike: Top-Performing Employees Likely To Get 12-15% Increment, Rest Up To 8%, Says Report
“We want to go down to our original levels. So 12-13 percent is the band which we are comfortable with… I know my numbers will really come back close to this range. We expect to reach pre-pandemic number levels in the second half of this year,” Milind Lakkad told Moneycontrol.
“It will come down from 20 per cent…pre-pandemic level, it will go to 13-14 per cent,” Lakkad said.
Read More:- Will Your Aadhaar Number Get Changed After Address Update?
While TCS saw attrition of 21.3 per cent in the December quarter during the post-pandemic boom, the last two-three quarters saw global recession and geopolitical hurdles that have led to layoffs and hiring freezes in many global firms, ending the frenzy.
TCS’ rival Infosys saw an attrition of 20.9 per cent in the March quarter, down from 24.3 per cent in the December quarter. Wipro and HCL Technologies will announce their results on 27 and 20 April, respectively.
