Tata Consultancy Services on Friday announced that its employees received salary increases of 5-8 percent, with top performers getting even bigger hikes. The company also reported an increase in workforce strength, reflective of a growing business environment.
Increase in workforce
Tata Consultancy Services (TCS), also known as the largest Information Technology (IT) services company in India, added 14,136 employees for the first quarter of the current financial year, but its attrition rate stood at 19.7%.
While announcing its June quarter results, TCS reported that its workforce stood at 606,331 as of June 30, however, its attrition rate also soared to 19.7 percent in the last 12 months. It is the highest in the last six quarters.
Following this, CEO Rajesh Gopinathan said attrition in this quarter should be also viewed from a seasonality perspective as junior-level employees go for studies or other areas, but said that it has not yet started to dip.
The workforce growth seems in line with the company’s statement of a hiring target of 40,000 for FY23 at the end of FY22. TCS CFO Samir Seksaria said the company is on track to hire 40,000 people this fiscal and is not its changing hiring target.
The IT major had recruited over 1 lakh freshers in FY22 and added 35,209 employees in the last quarter of the year.
TCS employees also received salary increases of 5-8 percent, with top performers getting even bigger hikes following their annual compensation review.
“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,” said Milind Lakkad, Chief HR Officer.
It’s not just the increase in headcount that should be noted, but India’s top IT exporter has said that its workforce continues to be very diverse, comprising 153 nationalities and women making up 35.5 percent of the base.
Also, TCS has slowly accelerated its return to office program in the June quarter, with about 20% of the workforce now working from the office.