Recently, tech industries experienced difficulty as many companies announced widespread layoffs in an effort to cut costs and survive the current economic climate. TCS (Tata Consultancy Services) is still the exception, though, as the business continues to add staff while simultaneously making efforts to close the pay gap for its workers despite the difficult employment market. TCS employs more than 6 lakh people worldwide.
It is typical for young and senior personnel in a company to get different salaries. TCS, however, wants to solve this issue.
As the industry emerges from a pandemic-induced rally of high staff attrition and large rises of more than 80-120 percent, the corporation believes that this is a better approach than paying out very high increments to new workers.
In an interview with Moneycontrol, Milind Lakkad discussed the company’s ambitions to close the salary gap amongst employees, “Those two years of instant gratification were definitely there. While we lost people because they were getting X per cent 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,”
Boosting salaries
The company is enrolling more employees in its existing programmes across experience levels to give them a chance to double their compensation in the face of high attrition rates, even though only 10% of applicants each year are successful in these high-level programmes on their first try.
TCS’ main programme, Elevate, has over 400,000 registered employees with 0-12 years of experience. Employees in the first three years of experience category go through a prescribed programme from TCS to help them become full-stack professionals, also including soft skills training. Those who clear are able to cross the high bar assessment and double their salaries immediately.
Lakkad also told the publication that according to him, employees with 4-12 years of experience could become specialists in areas such as technology, cybersecurity, IoT, analytics, and artificial intelligence, once the programme ends. They can then choose the industry they want to focus on.
As of March 31, 2023, TCS had 6,14,795 employees. This number is less than the 6,16,171 employees reported for the quarter ending in September 2022. With 150 different countries represented in the workforce and women making up 35.7% of the base, the workforce is still diversified.
The attrition rate for the company’s IT services is continuing to decline and was 20,1% LTM (last twelve months). The attrition rate was 21.3 percent in the most recent quarter that concluded in December 2022, which was somewhat lower than the 21.5 percent in the quarter that ended in September 2022.
For the quarter ending March 2023 (Q4 FY23), Tata Consultancy Services reported a 14.8% increase YoY in net profit of Rs 11,436 crore. Its operational revenue increased 16.94% to Rs 59,162 crore from Rs 50,591 crore in the same period last year. TCS’ net profit for the same quarter in the previous year (Q4 FY22) was Rs 9,959 crore.
