TCS

TCS reports the lowest hiring and attrition, hikes salaries

Indian IT firms have experienced a huge drop in the workforce in the last quarter. Wipro reported an 8,812 decrease in workforce during the first quarter (Q1) of FY24, bringing its overall headcount to 249,758. TCS, India's largest IT services business, and HCL Tech, an IT giant, are no exception. Net staff additions for the two firms were also less than 2,000. The attrition rate is less than 20% at all three IT firms, a year-low. The following are important recruiting trends at TCS, India's largest software and services firm.

TCS Hiring Falls for Over 96%

In the first quarter of fiscal year 2024 (April to June 2023), Tata Consultancy Services (TCS) added 523 workers. The figure represents a whopping 96% reduction from the same quarter's previous fiscal year's net additions of 14,136. The company's overall headcount now stands at 615,318.

TCS Employed Less Than 1000 People in Q1 for the Second Time This Year

In the prior quarter, we had a net increase of 821 jobs. The corporation hired approximately 20,000 new staff during the same quarter last year.

The Attrition Rate at a Five-Quarter Low

TCS's attrition rate has dropped to 17.8%. This is the lowest attrition rate in five quarters. In the previous quarter, the figure was 20.1%. "Our attrition continues to trend down, and we expect it to be back in our industry-leading, long-term range in the second half of the year," said TCS' chief human resources officer, Milind Lakkad.

To Hire 40,000 Freshers in FY2024

TCS (Tata Consultancy Services) will hire 40,000 new employees in fiscal year 2024 (FY24). The figure is almost 10% lower than the previous fiscal year. In fiscal year 2023, the corporation employed 44,000 new employees. "We continue to hire freshers, and we'll hire this quarter as well, and that will continue," TCS CEO K Kritihivasan said during the company's first-quarter results call with investors. "We should be back in our normal industry-leading range by the second half of this year," said Kritihivasan.

Hikes Ranged Between 12-15% for Best Performers

"In our most recent annual compensation review, we gave a 12-15% rise to exceptional performers and also started the promotions cycle," TCS' chief HR officer Milind Lakkad said. "We remain focused on developing, retaining, and rewarding the best talent in the industry, as well as enhancing their effectiveness by bringing them back to the office to foster our culture," Lakkad said.

55% of Employees Working from the Office

Approximately 55% of TCS's employees have begun reporting to the office thrice weekly.

TCS Honours All Job Offers

TCS stated that it is dedicated to honoring all employment offers given to it. At the same time, Lakkad stated that the company would focus on maximizing last year’s capacity. "On the people side, we will honor all job offers we have made while remaining focused on utilizing the capacity we have already built up," Krithivasan said, adding that the company's last twelve months (LTM) attrition in IT services dropped to 17.8%.